The Bulk Oil Storage and Transportation Limited Company (BOST) has reported a profit after tax of GH¢342 million for the last year, marking its second profit in 11 years. This growth of 112% from the GH¢160.72 million recorded in the previous year signals a notable turnaround for the state-owned company.
The profit surge was driven by a significant increase in revenue, which rose by 169% from GH¢3.02 billion to GH¢1.12 billion during the same period. This positive financial performance comes after a decade of losses for BOST.
According to Ekow Hackman, the Board Chairman of BOST, this achievement is due to the successful restoration of the company’s business model, focusing on the effective utilization of strategically located fuel depots connected by pipelines and barges. This restoration enabled the secure and cost-effective delivery of fuel products across the country.
Notable contributors to BOST’s improved financial performance include a 387% increase in revenue from fuel product sales, with revenue from gasoline sales rising by 224% and gas oil sales increasing by 352%. Improved financing arrangements, customer engagement initiatives, and prudent risk management were also key factors contributing to the positive trading performance.
Despite these gains, there were challenges in certain areas, such as a decline in the contribution of the BOST margin to revenue and increased storage and rack fees. However, overall, BOST has transitioned from a negative equity position of GH¢248.19 million in 2021 to a positive equity position of GH¢86.47 million in 2022.
BOST’s successful turnaround is attributed to a five-year strategy focusing on operational excellence and business growth. The company achieved its 2024 revenue target of GH¢3 billion in 2022 and is working towards other targets. The strategy also emphasized rebranding, creating a performance-based corporate culture, and investing in modern trends like Artificial Intelligence to stay relevant in the market space.
This achievement is not only significant for BOST but also aligned with broader efforts to address challenges faced by state-owned enterprises and unlock their full potential.
Opinion: BOST’s recent financial success and its transformation from a decade of losses to consecutive profits reflect the importance of strategic planning, effective management, and adaptability in the business landscape. This turnaround showcases that with the right strategies, diligent execution, and a focus on modern trends, even organizations facing long-standing challenges can achieve remarkable improvements. The case of BOST demonstrates the potential for state-owned enterprises to achieve financial stability and contribute positively to the economy, and it underscores the significance of sound leadership, innovation, and financial acumen in realizing such goals.