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BOST Settles Debts

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THE BULK Oil Storage and Transportation (BOST) Company Ltd has witnessed a massive turnaround after wallowing in debt for some time.

BOST recorded a profit of GH¢31 million for 2020, the first time since 2012, and is billed to record more profits in the 2021 operational year due to the prudent management practices of the managing director, Edwin Alfred Provencal.

Interacting with some journalists Monday, Mr Provencal said his outfit has settled most of its debts, hinting about venturing into the business of storage of liquefied petroleum gas.

“In terms of management performance for 2020, we budgeted to make a loss of GH¢81 million, but the efforts of the staff and the board enabled us make a profit of GH¢31 million,” pointed out.

Mr Provencal said the positive profit-before-tax obtained in 2020 and the estimated positive outturn implied a massive turnaround of the operational fortunes of the company.

The five-year revenue and profitability audited position of the company indicates that the strategic oil storage company recorded a GH¢632.65 million revenue in 2020, with a corresponding profit-before-tax of GH¢9.84 million.

Since 2020, the income-earning assets of the company have improved from 18 to 91 per cent.

He said working to overturn the loss-making position of the company into profitability had been through enhanced performance, driven by extensive operational efficiency initiatives.

He said in 2019, the company recorded GH¢521.60 million in revenue and loss-before-tax of GH¢158.48 million.

In 2018, BOST recorded revenue of GH¢263.64 million, against loss-before-tax of GH¢287.75 million.

Similarly, there were losses-before-tax of GH¢112.19 million in 2017 and GH¢533.19 million in 2016, the data indicated.

According to Mr. Provencal, the strategies of good governance, transparency, staff motivation and team work is what has done the magic at BOST.

He said the judicious use of the BOST margin which is presently pegged at 7-pesewes has led to the high reduction of debts in the SOE.

He said the earnings from the BOST margin contributed to an increase in the firms IGF and led it to undertake some major initiatives and maintenance works, adding these include the replacement and addition of new loading arms, replacement of analog flow meters with digital flow meters, repair of damaged Buipe-Bolga pipeline, construction of 300 capacity BRV parking lot at the Bolgatanga depot among others.

The BOST MD said the operational efficiency was driven by factors “including, but not limited to, massive repair works of our storage tanks, pipelines and marine assets, replacement of outmoded parts across the facilities of the company in the last two years, supported by improved marketing and customer service.”

The MD commended staff and management for their support in meeting the company’s vision.

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