State-owned Bulk Oil Storage and Transportation (BOST) is undergoing huge transformation with positive outlook, ready to compete favourably in the petroleum downstream sector.
The company, which was running at a loss and was debt-stricken for years has paid off majority of its debt and now making impressive profit.
With prudent management practice, operational efficiency and quality leadership under its Managing Director (MD) Edwin Provencal, BOST recorded almost GH¢2 million profit-after-tax in 2020 for the first time since 2012.
Apart from this, BOST has been able to pay about $600 million out of its $624 million trade debt it inherited in 2017 through Internally-Generated Funds (IGF).
Interacting with some journalists in Accra, the BOST MD, Mr. Edwin Provencal said he was hopeful that the company will record more profit in 2021 when all the accounts are fully put together and audited.
BOST, he stressed, has settled most of its debts and gave indication that the company may diversify its activities including venturing into the business of storage of Liquefied Petroleum Gas (LPA).
“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 enable us make a profit of GH¢31 million”, Mr. Provencal stated.
According to him, the positive profit-before-tax obtained in 2020 and the estimated positive outturn implied a massive turnaround of the fortunes of the company.
He pointed out that 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 the year 2020, the income-earning assets of the company have improved from 18 to 91 per cent”, he added.
Mr. Provencal reiterated that overturning the loss-making position of the company into profitability was attributable to enhanced performance, driven by extensive operational efficiency initiatives.
Revenue performance
The BOST MD said in 2019, the company recorded GH¢521.60 million in revenue and loss-before-tax of GH¢158.48 million.
This, he noted, was an improved performance, considering that in 2018, the company recorded revenue of GH¢263.64 million, against loss-before-tax of GH¢287.75 million.
Available data also indicated that there were losses-before-tax of GH¢112.19 million in 2017 and GH¢533.19 million in 2016.
Collaborative effort
Mr Provencal noted combined strategies of good corporate governance, transparency, staff motivation and team work are all contributing to the turnaround of the company.
He added that the judicious use of the BOST margin, which is currently pegged at 7 pesewas per litre has also led to the high reduction of debts in the company.
Major initiatives
Mr. Provencal said the earnings from the BOST margin contributed to an increase in the company’s IGF.
This, he said, has led to the company undertaking some major initiatives and maintenance works including the replacement and addition of new loading arms, replacement of analog flow meters with digital flow meters, repair of damaged Buipe-Bolga pipeline and construction of 300 capacity BRV parking lot at the Bolgatanga depot among others.
According to him, BOST is now on course to becoming the number on fuel and logistics company in the Sub-Region.
Mr. Provencal acknowledged that 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.”
He commended the staff and management for their support in transforming the company to deliver its core mandate.
Mr. Provencal believes staff agitations that had bedevilled BOST in the past, negatively affected the company and that the leadership has played a critical role to change this narrative.
“As a leader, one must have the right purpose to motivate the people in order to contribute to the fiscal regime of the country and build BOST into the best State-Owned Enterprise in Ghana”, the MD emphasised.
In separate comments, some BOST management members expressed great satisfaction in the management and leadership qualities of Mr. Provencal.
