Ghana’s petroleum strategic stock-keeping company, Bulk Oil Storage Transportation (BOST) Company Limited, has posted a pre-tax profit for the second time after recording losses.
The company made GH¢30 million profit in 2020, but after auditing of its account, the figure dropped to Gh¢2 million.
Speaking at a media engagement to present how the company fared in 2021 and the way forward for 2022, Managing Director of BOST, Edwin Nii Obadai Provencal revealed that the management account of the company shows a profit of GHc55 million at the end of December 2021.
Mr Provencal, however, told energynewsafrica.com that it is likely the 2022 pre-tax profit margin would drop if their accounts are audited, noting that some margin of the profit would cater for payment of taxes.
The last time the company posted profit was in 2012. Since then, the company had been wobbling in debt with its infrastructure suffering decay.
However, the company has seen a transformation over the last three years under the current management led by Edwin Alfred Nii Obodai Provencal.
According to the MD, the company has increased its revenue-earning assets from 17 per cent to 75 per cent over the last two years.
He said BOST, in the past few years, underwent a financial restructuring that allowed it to carry out its core mandate and generate the needed revenue for the government.
He said the financial turnaround strategy implemented at the fuel logistics company will be able to transform the company from a loss-making state enterprise to a profit-making entity such that it can pay dividends to shareholders.
He said BOST has been able to pay some $585 million out of the $624 million which was in arrears back in 2017, stressing that about 73 per cent of these liabilities were offset using internally generated funds by June 2021.