BOST posts GH¢343m profit after tax in 2022

By Selorm GBORBIDZI, Accra

The Bulk Oil Storage and Transportation Company (BOST) has declared a profit after tax of about GH¢343 million (GH¢342,494,604) in the 2022 financial year.

This profit is a 112% increase over the profit declared in 2021 financial year.

This was revealed at the Annual General Meeting (AGM) of the oil distribution company in Accra.

Board Chairman of BOST, Ekow Hackman said total revenue generated shot up from about GH¢1.121 billion in 2021, to around GH¢3.018 billion in 2022, an increase of about 77%.

The transport company also saw an increase in its operating income by about 69% from the GH¢254 million (GH¢254,291,419) recorded in 2021, to about GH¢430 million (GH¢428,923,102) in 2022.

Revenue generated from fuel product sales also saw an increase of 387% from 2021 to 2022, while revenue from gasoline sales rose from GH¢340 million (GH¢340,633,871) to   GH¢1.1 billion (GH¢1,103,299,371), an increase of about 224%.

Meanwhile, gasoil sales in the same period climbed up by 353%, from some GH¢331 million (GH¢331,063,261) to about GH¢1.5 billion (GH¢1,495,912,905).

Mr Hackman attributed this positive performance to improved financing arrangements, more effective customer engagements and retention initiatives, as well as prudent management of trading risks.

Despite posting all these gains, the Board Chair revealed that the contribution of BOST margin to the company’s revenue had declined by 10% from the  GH¢380 million (GH¢380,416,951) generated in 2021 to about GH¢343 million (GH¢343,260,945) last year.

He also stated that BOST has managed to consolidate itself as the second best depot operator nationwide and the best outside of the Greater Accra Region.

These developments enabled BOST to transition from a negative equity position of around GH¢250 million (GH¢248,190,799) to a positive equity position of almost GH¢87 million (GH¢86,466,542) last year.

Minister of Energy, Dr Matthew Opoku Prempeh, noted that the progress made by BOST exemplifies the path to take as a country.

He also noted that despite the strong performance posted by BOST in the last two financial years, where it has recorded profits in concurrent years, “not all public institutions can be profit-making.”

He stated that some public institutions are set up to protect the ordinary citizens.

He also touched on the BOST Margin, which has been the subject of some controversy saying, “we are not going to remove [the] BOST margins. In fact, over the years we have identified serious anomalies in the petroleum downstream sector. So we need an institution like BOST to protect the ordinary Ghanaian, and ensure that there is fairness in the petroleum downstream sector. ”

He also indicated that government will direct BOST to make “sensitive, securitised interventions” in certain areas of the sector, stating that “the benefits of BOST intervention should not be lost on us.”

Dr Prempeh assured that government is committed to equipping BOST to enable it carry out its mandate fully.

He further assured that government will continue in its efforts to revive the Tema Oil Refinery (TOR), so that together with the Ghana Oil Company Limited (Goil) and BOST, “they can play the vital role of protecting the ordinary citizens.”

The Minister of Public Enterprises, Joseph Cudjoe, said that over the years, BOST has faced challenges which made it unattractive to potential investors.

These challenges, which included financial and operational scandals, inefficiencies, high indebtedness, management issues and consistent losses, contributed to the company’s high negative retained losses.

He noted that these problems have been surmounted, as BOST did not merely record its first ever profit in over a decade in the 2021 financial year, but has gone on to surpass that GH¢161 million profit by a whopping 113%.

He said, “as Minister for Public Enterprises, BOST’s turnaround is a significant development aligned with our goal of addressing long-standing challenges that have bedeviled State Owned Enterprises and prevented them from fulfilling their full potential.”

Director General of the State Interests and Governance Authority (SIGA) Ambassador Edward Boateng, commended BOST for overcoming the challenges which it faced and demonstrating such resilience to fulfilling its mandate to post such stellar results, two years in a row.

He said, “Our confidence in State Owned Enterprises (SOEs) as a result of BOST’s singular efforts has increased dramatically at SIGA.”

He urged the management of BOST to strive to achieve more than it presently has by fostering innovative thinking, perseverance and team work.