The Bulk Oil Storage and Transportation Limited Company (BOST) has reported a significant increase in its net profit margin, according to its board chairman, Mr. Ekow Hackman.
The net profit margin of BOST rose from GH₵161 million in 2021 to GH₵342 million in 2022, marking a 112% increase. This positive financial performance comes after years of losses, highlighting a remarkable turnaround for the company.
Mr. Hackman attributed this achievement to the strategic decision to revamp BOST’s business model, focusing on effectively utilizing its strategically located fuel depots connected by a network of pipelines and barges. This approach allowed BOST to deliver fuel products securely and cost-effectively across the country. The revenue-generating assets of the company increased from 34% in 2017 to 97%, with a goal to reach 100% by the end of 2023.
The increase in BOST’s profit margin, from 7 pesewas to 9 pesewas in December 2022, provided the company with the resources needed to repair and maintain its facilities, many of which are situated in areas where the private sector is not present.
The Minister of Energy, Dr. Matthew Opoku Prempeh, praised BOST’s management for transforming the state institution from a debt-ridden firm to a profit-making entity. He highlighted the contribution of BOST’s success to the government’s fiscal policies and national growth agenda. He also mentioned the government’s efforts to revamp the Tema Oil Refinery to complement BOST’s activities, further benefiting Ghanaian consumers.
Overall, BOST’s improved financial performance showcases its efforts to optimize its operations, generate revenue, and contribute positively to the energy sector and the nation’s economy.