The upward turn in the fortunes of the Bulk Oil Storage and Transportation Company Limited (BOST) under the current management continues as the company has announced a more than 100% increment in net profit margin from 2021.
At the company’s Annual General Meeting held on Thursday, August 17, 2023, it came to light that BOST recorded a net profit margin of GH¢342million which is 112% more than the success it chalked in the previous year.
The remarkable story was told by the board chairman of BOST, Ekow Hackman during a speech delivered at the AGM.
Ekow Hackman credited the success on the adoption of a different strategy in the management of the company by the current administration.
He explained that the Edwin Provencal-led management embarked on a mission in 2021 to restore and revive all of BOST’s hitherto neglected and non-functional assets and that the gains being made are a result of those sound initiatives and plans.
Mr Hackman also commended the government for facilitating the operations of the company with the increment in the BOST margin from 7pesewas to 9pesewas.
“The transformation that BOST has undergone over the past three years is truly remarkable. The company has been turned from a heavily indebted one to a highly profitable one. In 2022, BOST increased its net profit by 112% to GH¢342 million from GH¢161 million in 2021. This performance should be viewed in the context of a miserable run of losses which had been recorded for more than a decade until 2021,” he stated.
“Central to our transformation has been the restoration of our business model, which involves the effective utilization of our strategically located fuel depots connected by a network of pipelines and barges. The revival of these assets has enabled us to deliver fuel products securely and cost-effectively to consumers across the country,” he added.
“Through the dedicated efforts of our management and workforce, we have significantly increased the revenue-generating assets of the company to 97% from a trough of 34% in 2017. We are committed to ensuring that 100% of our assets are generating revenue by the end of 2023.”
Dr. Matthew Opoku Prempeh, the Minister of Energy was highly impressed with the story of BOST from a distressed company to a profit-making firm.
He commended the management and staff for their incredible work and dedication, noting that the success of BOST should serve as an example for all state-owned companies.
He is confident that the recovery of debt will significantly and positively impact the country’s economy.
“On behalf of the government and the people of Ghana, I would like to express my sincere appreciation to the Board of Directors, Management and staff of BOST. The progress made by BOST exemplifies the path we should continue to follow, and we encourage you to increase the momentum to sustain this performance and strive for even greater heights.”
“BOST’s success contributes to the fiscal policies of the government and supports our national growth and development agenda. It is my expectation that other State-Owned Enterprises (SOEs) will learn from the BOST story and replicate this performance. This, I believe will ensure that government can effectively execute its flagship programs using revenues generated by its SOES,” the Minister added.