The Board of Directors, management and stakeholders of the Bulk Oil Storage and Transportation Limited Company (BOST) has for the first time in many years recorded a profit margin of 112%.
This was announced during 2023 Annual General Meeting (AGM) held in Accra.
According to the Board Chairman of BOST, Mr. Ekow Hackman, the downstream Oil sector in Ghana experienced a contraction, with consumption of petroleum products falling by 8.7%.
Mr. Hackman said notwithstanding, downturn, BOST achieved a net profit after tax of GH₵ 342,494,604 compared to GH₵ 160,718,361 in the previous year, an increase of 112%.
BOST operating income also increased by 69% fromn GH₵ 254,291,419 in 2021 to GH₵ 428,923,102 in 2022.
This was on the back of a 77% increase in revenue from GH₵ 1.121 billion in 2021, to GH₵ 3.019 billion in 2022.
Mr. Hackman also pointed out that revenue from fuel product sales saw an increase of 387% in 2022 compared to 2021.
He added that revenue from gasoline sales increased by 224%, from GH₵ 340,633,871 to GH₵ 1,103,299,71, whilst gasoil sales increased by 352%, from GH₵ 331,063,261 to GH₵ 1,495,912,905.
This positive trading performance, according to him, can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives as well as the prudent management of trading risks.
Again, Mr. Hackman stated that, the contribution of the BOST margin to revenue declined by 10% to GH₵ 343,260,945 from GH₵ 380,416,951 in 2021.
He revealed that storage fees increased by 27% from GH₵ 21,889,891 in 2021 to GH₵ 27,715,044, whilst rack fees also increased by 24% from GH₵ 30,753,298 in 2021 to GH₵ 38,172,046 in 2022.
“I am happy to inform you that as at May 2023, BOST is now the market leader,” he stated.
As a result, the company has finaly transitioned from a negative equity position of GH₵ 248,190,799 in 2021 to a positive equity position of GH₵ 86,466,542 in 2022.
Touching on the outlook, the Board Chairman disclosed that the the future of BOST remains promising and the Board is committed to ensuring that profitability becomes the norm rather than the exception.
The Annual General Meeting (AGM) serves as a pivotal event for companies to communicate with their stakeholders and provide updates on their performance, strategies, and future plans.
This year, the Bulk Oil Storage and Transport (BOST) organization hosted its highly anticipated AGM, which witnessed the presence of prominent industry leaders, shareholders, and government officials.
The event shed light on BOST’s achievements, challenges, and its
aspirations for the future.
Among those who addressed the audience was Dr. Mathew Opoku Prempeh, the Minister for Energy.
Key Highlights from the AGM
During the AGM, BOST highlighted its stellar performance in 2023, showcasing its efforts to expand and upgrade its storage and transportation infrastructure.
The company reported record-breaking revenues, pointing toward effective cost management strategies and increased efficiency in operations.
BOST’s commitment to renewable energy sources was also a key emphasis, further contributing to the organization’s sustainability efforts.
Dr. Opoku Prempeh’s Statement:
In his statement, the minister in charge of Energy, Dr. Matthew Opoku Prempah expressed his optimism regarding BOST’s future prospects, stressing the importance of continued investment in infrastructure development.
He highlighted the government’s commitment to supporting BOST’s growth and expansion plans as part of its broader agenda to enhance energy security in Ghana.
Dr. Prempeh also highlighted the importance of public-private partnerships to leverage expertise and resources for the benefit of all stakeholders involved.
He further commended BOST for its outstanding achievements and the positive impact it has made on the energy sector.
He underscored the significance of BOST’s contributions to the Ghanaian economy, emphasizing its crucial role in ensuring the security and availability of petroleum products across the country. Dr. Prempeh acknowledged BOST’s dedication to renewable energy solutions and encouraged the company to continue exploring innovative ways to reduce its carbon footprint.
According to Mr. Opoku Prempeh, he had had the opportunity to review the company’s
performance over the past year, and “I must express my satisfaction and admiration for the financial accomplishments of the company’s management within such a short timeframe.
BOST has transitioned from a negative equity position of (GHS 248,190,799) in 2021 to a positive equity position of GHS 86,466,542 in 2022.
This positive equity now places BOST on a sound footing to enable the company pay dividends to the government,” Mr. Opoku Prempeh added.
“The remarkable performance of BOST reinforces my firm belief that State-Owned Enterprises can generate profits, pay dividends and make significant contributions to the government’s fiscal policies with the right leadership, attitude and balance,” Mr. Opoku Prempeh acknowledged
Furthermore, the sector Minister pointed out that the BOST model should should serve as an exemplary example for all SOEs. “I have full confidence that the Public Enterprises Ministry and SIGA will spare no effort in encouraging and leading other SOEs to full their mandates and vision,” he emphasised.
The 2023 Annual General Meeting by Bulk Oil Storage and Transport served as a platform to acknowledge BOST’s achievements and delineate the company’s roadmap for the future.
The event witnessed the participation of stakeholders who expressed their enthusiasm and support for BOST’s endeavors.
