The Bulk Oil and Storage Distribution Company Limited (BOST) is optimistic about declaring profit for a second year running.
BOST prior to 2021 had been declaring losses after tax but declared a profit of some GH¢161 million after making a loss of GH¢291 million in the previous year.
Addressing some journalists at the Company’s End Of Year Media Engagement for 2022, the Head of Communications at BOST, Marlick Adjei, said the company will most likely declare profit for the year ending despite the challenges it had to face.
Describing the company’s record in the previous year as a result of deliberate management actions, the head of communications said “I wasn’t surprised we made profit of GH¢163 million last year. Going into this year, though fully impacted by the petroleum prices and other things, we are still not going to make a loss. 2022 will be another profit year and subsequent ones will not be any different.”
This he noted has become successful for the company owing to prudent management efforts made since 2017 when a relatively new administration took over the affairs of the company.
Outlining some of the efforts that have helped to turn around the fortunes of the company and the successes that have been chalking over the period, Marlick Adjei said deliberate efforts have been made to ensure efficiency in the storage and transportation of BOST products.
Some of the efforts he noted include the revamping and expansion of pipelines and marine facilities for the transportation of products across the country and in extension, to neighbouring countries.
Due to a lack of maintenance, 15 out of 51 BOST tanks had been decommissioned while 60% of the company’s depots were not functioning prior to 2017. However, they have been restored to functioning status.
The Company’s accounts which had also not been audited between 2015 and 2016 have since been audited up to date while several legacy debts have been cleared.
“As of 2020, some of the pumps and the loading arms and metres in the depots were the ones that were imported by Kojo Tsikata when he was the National Security Advisor in 1993. The industry has moved on. As we speak, we have digital flowmeters that check the volumes of products. BOST was using the stick method,” he stated during the engagement held at the AH Hotel in Accra on Friday, December 30, 2022.
He highlighted that the company by adopting current industry trends has significantly reduced loading times at its depots and is seeking to reduce it further in the future to promote efficiency.
On the future of BOST operations. Marlick Adjei who revealed that the company is targeting a revenue of GH¢3.4 billion by 2024, will extend its operations across Sub-Sahara to cover Mali. Burkina Faso and Niger.
With the company’s records since 2017 showing an inverse increase and reduction between cost and revenue, Marlick Adjei further expressed optimism that an overall reduction in the cost of petroleum products at the pumps will be the effect of BOST’s efforts.
As a state-owned enterprise (SOE), the core mandate of BOST is to keep the national strategic petroleum reserves and transport petroleum products from one depot to another throughout the country.
Meanwhile, the company is expected to play a critical role in the government’s “Gold for Oil” policy which is scheduled to be implemented from January 2023.
According to experts, the policy promises to result in a reduction in the price of petroleum products as well as ease the pressure of the Ghana Cedi against the US dollar.