The Bulk Oil Storage and Transportation Company Limited (BOST) of Ghana posted a net profit of GH¢342.5 million in 2022. This figure reflects a 112 percent surge compared to the 2021 earnings of GH¢160.7 million. This marks the second consecutive year of profitability for the state-owned company.
As a result, its operational income also saw a 69 percent uptick, reaching GH₵428.9 million in 2022 from GH₵254.3 million in 2021. This growth was fueled by a 77 percent increase in revenue, which reached GH₵3.019 billion in 2022 from the previous year’s GH₵1.121 billion.
The outstanding performance was mainly driven by a substantial rise in revenue from the sale of fuel products. This sector witnessed a staggering 387 percent increase in 2022 compared to 2021. Revenue from gasoline sales surged by 224 percent to GH¢1.1 billion in the year under review, up from GH¢340.6 million in 2021.
Furthermore, gasoil sales also exhibited exponential growth, soaring by 352 percent to GH¢1.4 billion in the same period from GH¢331.1 million in 2021.
Ekow Hackman, Chairman of the Board of Directors at BOST, commented on the results, stating: “This positive trading performance can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives, as well as prudent management of trading risks.” He noted that BOST’s margin contribution to revenue declined by 10 percent to GH¢343.3 million from GH¢380.4 million in 2021.
During the 2022 financial year, storage fees rose by 27 percent to GH¢27.7 million from GH¢21.8 million in 2021, while rack fees increased by 24 percent to GH¢38.2 million in 2022 from GH¢30.7 million in 2021.
Speaking at the company’s second annual general meeting in Accra, Mr. Hackman highlighted that BOST had solidified its position as the second-largest depot operator nationwide and the leading one outside the Greater Accra Region during the year under review. He further added, “I am happy to inform you that as of May 2023, BOST is now the market leader.”
In light of these developments, he shared that the company had successfully transitioned from a negative equity position of GH¢248.2 million in 2021 to a positive equity position of GH¢86.5 million in 2022.
He emphasized the promising future of BOST and the board’s dedication to making profitability the standard. He outlined various measures to enhance efficiency, including depot automation to ensure top-notch product delivery and attract a significant product volume.
He also underscored the significance of the concluded Front-End Engineering Design (FEED) for the Tema Kumasi Pipeline Project (TKPP), aimed at reducing the company’s carbon footprint. The planned construction of LPG tanks is expected to diversify revenue streams and support government youth employment initiatives. He concluded, “We are also committed to providing world-class training for our staff to ensure they are abreast with emerging technologies, especially the impact of artificial intelligence on the workplace.”
Speaking at the AGM, Dr. Matthew Opoku Prempeh, the Minister of Energy, revealed that in pursuit of maintaining this positive trajectory, the company’s management has initiated a debt-equity swap, awaiting approval from the Ministry of Finance. He urged the State Interests and Governance Authority (SIGA) and the Ministry of Public Enterprises to support BOST in achieving this objective.
Dr. Opoku Prempeh praised the board and management for the impressive performance, highlighting BOST as a prime example of how state-owned enterprises can yield profits, pay dividends, and significantly contribute to government fiscal policies.
