Bulk Oil Storage and Transportation (BOST) has announced a remarkable financial performance for the third consecutive year, recording a cumulative profit of GHS 710 million.
At the 2023 Annual General Meeting (AGM), the company highlighted its sustained growth, with a profit of GHS 208 million for the 2023 financial year, following GHS 342 million in 2022 and GHS 160 million in 2021.
BOST’s equity position showed significant improvement, rising from a negative GHS 248 million in 2021 to a positive GHS 277 million in 2023. This strong financial foundation is credited to the prudent management of the entity.
Impact of the Gold for Oil (G4O) Programme Explaining the profit dip in 2023 compared to 2022, BOST Chairman Ekow Hackman emphasised the company’s role in the Government’s Gold for Oil (G4O) Programme.
Initiated by the Bank of Ghana, Mr Ekow Hackman said that G4O aimed to mitigate the impact of foreign exchange fluctuations and rising inflation. The programme successfully reduced diesel prices from over GHS 23 to an average of GHS 14 per litre in 2023.
Mr Hackman noted, “The reduction in the profitability of the company as compared to 2022 should therefore be seen in the context of government’s deliberate policy to cushion the Ghanaian consumer from the adverse effects of imported inflation.”
Despite the lower profit, BOST’s trading volumes surged by 235% from 318.3 million litres in 2022 to 1.1 billion litres in 2023. Revenue from these trades, although recognized by the Bank of Ghana, resulted in an impressive turnover increase from GHS 3.02 billion in 2022 to GHS 10.17 billion in 2023.
Market Share and Asset Growth BOST’s market share grew from 8% in 2022 to 29% in 2023, and the value of its fixed assets increased from GHS 1.478 billion in 2022 to GHS 1.620 billion in 2023.
Looking ahead, Mr Hackman expressed commitment to investing in human capital, adopting new technologies including Artificial Intelligence (AI) for enhanced efficiency, and diversifying energy products to manage the energy transition towards net zero carbon emissions.
Future Prospects and Dividends
The Minister of Public Enterprises, Mr Joseph Cudjoe highlighted the expectation for BOST to continue on this path towards paying dividends to the government, aligning with President Nana Addo Dankwa Akufo-Addo’s vision.
He acknowledged BOST’s significant role in the G4O programme, which addresses exchange rate pressures and inflation.
Deputy Minister of Energy, Herbert Krapa, praised BOST’s achievements, noting that it positioned the company to pay dividends to the government shortly.
He stressed the impact of BOST on stabilizing petroleum product prices and curbing inflation through the G4O programme.
Challenges and Opportunities
Mr John Boadu, Director-General of the State Interest and Governance Authority (SIGA), acknowledged the challenges but emphasised the potential for further improvement and growth.
He pointed out that alignment of interests between the Board of Directors, government, and management was crucial for continued success.
Strategic Vision
BOST’s Managing Director, Dr Edwin Provencal, expressed optimism about the future, stating, “With our strategy, we are ready to embrace the great opportunities that lie ahead, and we are committed to continue delivering value for all our stakeholders.”
“As BOST continues to navigate the complexities of the oil and energy sector, its strategic initiatives and robust management practices position it for sustained growth and significant contributions to Ghana’s economy,” he noted.
GNA
CA/
July 20, 2024
