Ghana’s strategic petroleum stock keeping company, BOST, registered a huge net profit after tax of Gh¢342,494,604 in 2022 compared to the net profit of Gh¢160,718,361 in 2021.
This means that the company’s 2022 net profit went up by 112 % over the 2021 figure.
The company’s operating income also increased by 69 percent from Gh¢254,291,419 in 2021 to Gh¢428,923,102 in 2022.
This was on the back of a 77 per cent increase in revenue from Gh¢1.121 billion in 2021, to Gh¢3.019 billion in 2022.
Revenue from fuel product sales also saw an increase of 387 per cent in 2022 compared to 2021.
Revenue from gasoline sales increased by 224 per cent, from Gh¢340,633,871 to Gh¢1,103,299,371, whilst gasoil sales increased by 352 per cent from Gh¢331,063,261 to Gh¢ 1,495,912,905.
Storage fees increased by 27 per cent, from Gh¢21,889,891 in 2021 to Gh¢27,715,044, while Rack fees also increased by 24 per cent, from Gh¢30, 753,298 in 2021 to Gh¢30,172,046 in 2022.
This was revealed by the Board Chairman, Mr Ekow Hackman on Thursday at the company’s 2nd Annual General Meeting held at its new head office in Accra, capital of Ghana.
“This positive trading performance can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives as well as the prudent management of trading risks,” he explained.
BOST had been recording losses since 2011 until in 2021 when the company under the current management started posted profit.
With smiles beaming all around his face, Board Chairman Mr Ekow Hackman said the Board expects that the declaration of profits by BOST become an annual tradition to be celebrated by all and sundry.
Giving details of the transformation that has taken place over the years, Mr. Ekow Hackman stated that the company revived its strategically located pipelines and barges which enabled them to deliver fuel products securely and cost-effectively to consumers across the country.
He added that through the dedicated efforts of management and workers, BOST increased significantly the revenue generating assets of the company to 97 per cent from a trough of 34 per cent in 2017.
“We are committed to ensuring that 100 per cent of our assets are generating revenue by the end of 2023,” he assured.
Touching on the company’s outlook, Mr Ekow Hackman said BOST would continue to put measures in place to further enhance efficiency saying there would be automation of its depots which has stalled for many years.
He said the company has concluded the Front- End Engineering Design (FEED) for the Tema Kumasi Pipeline Project (TKPP) saying the company is looking forward to partner with private entities to construct this pipeline.
He was hopeful that the execution of the project would help to reduce the company’s carbon footprint and in addition to planned construction of LPG tanks, would also ensure the diversification of revenue streams as well as support government initiatives for youth employment.
He commended the Managing Director of the company, Mr Edwin Alfred Nii Obodai Provencal for his quality leadership skills that have seen the transformation of the company since he assumed office in August 2019.
The Managing Director of BOST, Mr Edwin Provencal said the company will continue to explore new markets within the sub-region for petroleum products while at the same time, prepare to transition from a purely oil and gas company to a full energy company.
He said they will do this by diversifying product mix by investing in the storage of new transition fuels such as LPG, Blended ethanol amongst others.
Minister for Energy, Dr Matthew Opoku Prempeh who was excited by BOST’s success story commended the Board, Management and staff of the company.
He said the remarkable performance of BOST reinforces his 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.
“The BOST model should serve as an exemplary example for all SOEs,” he stated.
The Director -General of the State Interests and Governance Authority (SIGA), Ambassador Edward Boateng who was also excited praised Management and staff for transitioning BOST from negative equity position of Gh¢ 248,190,799 in 2021 to a positive position of Gh¢86,466,542.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com