The Energy Minister, Dr. Matthew Opoku Prempeh, has expressed delight at Bulk Oil Storage and Transportation Company’s achievement in the 2021 financial year.
He made these remarks when he addressed stakeholders and members of management during their Annual General Meeting (AGM) yesterday at the Movenpick Ambassador Hotel, Accra.
In his remarks, he indicated his desire to see BOST thrive.
“Indeed, a profit before tax of One Hundred and Sixty-Four Million Cedis in 2021, from a previous figure of Two Million Ghana Cedis as Dr. Prempeh said, is a remarkable achievement, from the period of recurrent losses. This is also happening at a time, where the company is making assiduous efforts at extricating itself from a quagmire of protracted debts”, he said.
This, he said, was a testament that with the right leadership and set of attitudes, State-owned Enterprises (SOEs) could grow to feed the government with the revenue required for our progress as a people.
He urged the ministry responsible for Public Enterprises and the State Interests and Governance Authority (SIGA) to leave no stone unturned in encouraging SOEs to deliver on their mandate, helping government to make the lives of the people better, using the BOST story as a perfect blueprint.
The minister, who is also the MP for Manhyia South said he was confident that, if BOST sustains the current momentum, more successes will be chalked for the overall benefit of the citizens of our country. This is crucial, especially as government works to ensure that BOST is resourced to fulfil its mandate of ensuring the nation’s fuel security.
The Bulk Oil Storage and Transportation Company Limited (BOST) recorded a performance of GH¢160.7 million in profit terms in 2021, against a loss of GH¢291.07 million in 2020.
The company’s revenue from gasoline sales increased from GH¢140 million in 2020 to GH¢341 million in 2021 representing 144 per cent while diesel sales also jumped from GH¢227 million in 2020 to GH¢331 in 2021, making an increase of 46 per cent.
Revenue from the BOST marine transportation business also shot up from GH¢2.9 million in 2020 t0 GH¢14.9 million in 2021 accounting for 412 per cent with storage and rack revenue seeing a steady growth of four per cent from GH¢50 million in 2020 to GH¢52.6million in 2021.
Mr Ekow Hackman, the Board chairman, disclosed this at the company’s first Annual General Meeting in Accra on Wednesday.
He said the company had made progress over the past few years which had transformed it from a heavily indebted company owing more than $624 million as of January 2017 to one with debts of less than $30 million at the end of 2021.
“We have restored the business model in which the company was established, to have a number of operational fuel depots placed in strategic parts of the country linked by a network of pipelines and barges to enable secure and cost-effective delivery of fuel products around the country,” Mr. Hackman said.
The Board Chairman said the restoration of part of the lost value of the company margin by Government in June 2021 has brought an element of financial stability to the company.
“This levy on the petroleum price ensures that BOST can repair and maintain facilities in parts of the country such as Bolgatanga, Buipe, Savelugu and Akosombo areas where private profit-oriented companies would not readily venture,” Mr. Hackman said.
He said the transformation of the company’s infrastructure as well as its commercial operations have been accompanied by a strong emphasis on governance and compliance.
Mr. Hackman said the Board has established a Board Charter to guide its work as well as charters for its individual committees, adding that in line with international best practice.
“We also introduced a Risk Committee which oversees the activities of the new Risk Unit introduced by the management which was seen as indispensable during these increasing turbulent times which has led to developments such as the Covid-19 Pandemic and the Russia-Ukraine war,” Mr. Hackman said.
He expressed the hope that key strategic initiatives that have commenced which included the upgrading projects will place the company at par with other terminals that have state-of-the-art equipment and will establish the company as the market leader nationwide.
Dr Matthew Opoku Prempeh, Minister for Energy commended the company for its sterling performance during the year under review.
He said the government was sparing no effort at ensuring that BOST resourced to hold stocks to fulfil its mandate.
Dr Opoku Prempeh said for a sustainable solution to our fuel challenges, the government was working to ensure efficient Tema Oil Refinery compliments the efforts of BOST by refining products and delivering same to the company for storage and distribution to ensure the Ghanaian petrol product consumer is saved the difficulty of high prices of products due to the desire to make a profit or global challenges.
“Government does not invest in stat e-owned enterprises (SOEs) to sit back and watch them making chain of losses from one fiscal year to the other,” he said.
He added that the Public Enterprises Ministry and State Investment Governance Authority (SIGA) will leave no efforts behind in encouraging and leading SOEs to deliver their mandate and help the government to make the lives of the people better.
