BOST records 112% growth in net profit; ends 2022 with GHS 342m net profit
The Bulk Oil Storage and Transportation Company Limited (BOST) has achieved an impressive financial feat, reporting a staggering net profit of GH¢342.5 million in the fiscal year 2022. This noteworthy figure represents an astonishing 112% increase compared to the previous year’s earnings of GH¢160.7 million. This marks the second consecutive year that the state-owned entity has delivered profitable results.
In tandem with this exceptional profit surge, BOST’s operating income also demonstrated robust growth, registering a remarkable 69% increase to GH¢428.9 million in 2022 from the prior year’s figure of GH¢254.3 million. This noteworthy achievement was underpinned by an equally impressive 77% surge in revenue, soaring from GH¢1.121 billion in 2021 to GH¢3.019 billion in 2022.
Driving this commendable performance was the substantial expansion of revenue streams, primarily from the sale of fuel products. Notably, fuel product sales witnessed a remarkable upswing of 387% in 2022 compared to the preceding year. Revenue derived from gasoline sales displayed an impressive surge of 224%, reaching GH¢1.1 billion in the year under review from GH¢340.6 million in 2021. Equally noteworthy, gasoil sales experienced exponential growth, skyrocketing by 352% to GH¢1.4 billion in 2022 from GH¢331.1 million in the previous year.
BOST’s Chairman of the Board of Directors, Ekow Hackman, attributed this robust trading performance to a combination of improved financing arrangements, enhanced customer engagement and retention initiatives, as well as prudent management of trading risks. Hackman also highlighted that BOST’s margin contribution to revenue declined by 10% to GH¢343.3 million from GH¢380.4 million in 2021.
During the course of the 2022 financial year, storage fees and rack fees both demonstrated significant increases, with storage fees rising by 27% to GH¢27.7 million and rack fees increasing by 24% to GH¢38.2 million.
Amid these accomplishments, Mr. Hackman declared that BOST has ascended to the position of market leader as of May 2023, marking a substantial achievement for the company.
Underscoring its successful financial turnaround, BOST has 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.
In light of these encouraging developments, Mr Hackman expressed optimism for BOST’s future and outlined a series of measures aimed at further enhancing operational efficiency. These include the automation of depots to ensure the delivery of world-class products and attract increased volumes. Additionally, he emphasized the significance of the concluded Front-End Engineering Design for the Tema Kumasi Pipeline Project, which is poised to reduce the company’s carbon footprint.
The Minister of Energy, Dr. Matthew Opoku Prempeh, commended BOST’s board and management for their impressive performance, underlining the company’s contribution to government fiscal policies. To bolster its positive trajectory, BOST is actively seeking a debt-equity swap, awaiting approval from the Ministry of Finance.
In alignment with this objective, both the State Interests and Governance Authority (SIGA) and the Ministry of Public Enterprises have been urged to support BOST’s efforts in realizing its goals. The Minister of Public Enterprises, Joseph Cudjoe, hailed BOST’s turnaround as a significant advancement and a testament to the potential of state-owned enterprises to generate substantial profits.
Amidst these achievements, BOST’s transformation presents a compelling case study of how effective management can lead to profitability and meaningful contributions to the nation’s economic landscape.
