BOST recovers from GHS 291m loss in 2020; records GHS 160.7m net profit in 2021
Bulk Oil Storage and Transportation Limited (BOST) has orchestrated an astounding financial recovery, reporting a net profit of ¢160.718 million in 2021, a stark contrast to the ¢291.017 million loss incurred in the previous year. The 2022 Auditor-General Report revealed an impressive positive total comprehensive income of ¢185.797 million for 2021, in stark contrast to the ¢306.692 million deficit recorded in 2020.
BOST’s spectacular financial performance is largely attributed to a relentless pursuit of operational efficiency throughout the financial year, which has borne fruit in the form of renewed profitability and growth.
A standout factor contributing to BOST’s success was the remarkable 76.1% surge in total income, soaring from ¢649.431 million in 2020 to a staggering ¢1.143 billion in 2021. This remarkable growth was primarily driven by an increase in BOST’s margin, climbing from GHp6 to GHp9 in June 2021, alongside substantial growth in product sales, particularly in the gasoline and diesel segments. Additionally, the company witnessed a significant boost in marine income, surging from ¢2.898 million in 2020 to an impressive ¢14.832 million in 2021.
However, while total income soared, BOST’s total expenditure also experienced a notable upswing of 39.8%, reaching ¢894.268 million in 2021 from ¢639.587 million in 2020. The increase was primarily attributed to a rise in the cost of sales, reaching ¢659.341 million in 2021 from ¢410.742 million in 2020, fueled by higher import costs and depreciation of the local currency.
The balance sheet presented a positive picture, with BOST’s Non-Current Assets registering a commendable 1.8% increase, growing from ¢1.464 billion in 2020 to ¢1.491 billion in 2021. This expansion was driven by the strategic acquisition of additional assets, including lands, and capital repairs of storage facilities. Concurrently, Current Assets exhibited remarkable growth, soaring by an impressive 66.3%, from ¢350.673 million in 2020 to ¢583.249 million in 2021, primarily attributed to increased inventories and trade and other receivables.
Despite the commendable developments in assets and liabilities, BOST still faced challenges in managing its short-term financial obligations. Non-Current Liabilities experienced a slight decrease of 1.3%, reaching ¢1.256 billion in 2021 from ¢1.273 billion in 2020, partially due to a reduction in loans during the year. However, Current Liabilities registered a 6.5% increase, reaching ¢1.065 billion in 2021 from ¢1.00 billion in 2020, primarily driven by higher current tax provisions and trade and other payables.
While the current ratio improved to 0.5:1 in 2021, signaling progress, it also underscored that BOST needs to further enhance its capability to effectively meet short-term financial obligations.
BOST’s remarkable financial turnaround in 2021 signifies a promising trajectory for the company’s future, with its unwavering focus on operational efficiency and strategic management paving the way for sustained growth and profitability.
