The Bulk Oil Storage and Transportation Company (BOST) together with government has paid its legacy trade liabilities of $611,865,429 million out of a total debt portfolio of $ 623,602,303 incurred by 2016, representing 98.2 percent.
BOST’s internally generated funds (IGF) accounted for 70 per cent ($426 million) of the payment with government providing the 30 per cent through the Energy Sector Levy Act (ESLA) bond.
Total amount paid from January 2017 to June 2022 indicated that BOST has been servicing the debt to the tune of about $102 million every year.
The remaining $11,736,874 million, which is 1.8 percent, according to the Public Affairs Manager of BOST, Mr. Marlick Agyei is expected to be cleared by the end of next year.
Loans paid
In addition to the payment of the trade liabilities, BOST together with government has also paid an amount of GH¢384,233,158 out of a GH¢416,708,836 loan from four institutions, namely Stanchart, GCB, Fidelity Springfield and Fidelity NPA, representing 92 percent.
This amount is also expected to be paid by BOST led by its Managing Director, Mr. Edwin Provencal.
Increase in IGF
In 2021 BOST generated a revenue of about GH¢1.12 billion compared to a sum of GH¢632.7 million recorded in 2020.
BOST is also undertaking a lot of initiatives to keep it on track in the execution of its mandate.
Profit after tax
The profit after tax by BOST increased to GH¢164 million in 2021 from a sum of GH¢2 million in the year 2020.
This means that the profit after tax of the firm grew 82 times compared to the 2020 figure recorded. The growth has been described by financial experts and stakeholders as remarkable.
Reduced administrative expenses
Apart from this, the administrative expenses of BOST recorded a drastic reduction over the period with a record of GH¢228.1million in 2021 with staff strength of 496 compared to a sum of GH¢538.3 million recorded in 2016 as administrative expenses with staff strength of 347 under the John Mahama-led National Democratic Congress (NDC) administration.
The drastic reduction in administrative expenses, THE CUSTODIAN, has been told, was due to the prudent management of operations by the current management team.
These include the rehabilitation of 12 of its 15 storage tanks, revamping of its transmission pipelines and the rehabilitation of its tugboats and barges, which are all contributing to the revenue streams of the company.
Prudent measures put in place by the current management have kept BOST active as it is currently exporting petroleum products to Mali among others.
The company’s export to Mali has grown from 0.3 per cent in 2019 to six percent, which industry players have described as a highly remarkable achievement.
NDC’s mess
Records at BOST have revealed unalienable facts of the mismanagement that occurred under the Mahama-led NDC administration.
As of January 2017, BOST had a backlog of unedited accounts from 2014 to 2016.
Indeed, the 2016 audited accounts of the company showed a total loss of GH¢459 million, the highest loss ever in the history of BOST.
In January 2017 BOST owed US$624 million to suppliers, BDCs and related parties in respect of crude oil imports for processing at TOR and refined products, which got lost from BOST tanks.
This colossal amount, according to industry players, could have been used in building many hospitals, schools & roads.
Records also show that products not accounted for by BOST from BDCs between 2010 and 2014 amounting to $35.913 million hanged on the neck of the company from eight BDCs while at January 2017, 15 out of 51 tanks owned by BOST across the country were non-operational.
The Tema-Akosombo Product Pipeline (TAPP) had been non-operational since 2013 before the New Patriotic Party (NPP) government took over in 2017.
Again, the 77Km of 12” pipes that BOST had acquired in 2008 under the Kufuor-led NPP government for construction of a pipeline between Accra Plains and Akosombo Depots were still stuck in Houston and incurring huge additional costs after nine years.
“In January 2017, 100% of our marine assets (all four BOST river barges, tug boat and floating dock) were broken down and non-operational, which limited transportation of petroleum products across the country. Our Bolga-Buipe pipeline and Bolga Depot were not operational.
“The CBM, which was built on a Build-Operate-Transfer basis for BOST was transferred to TOR and subsequently leased to a South African Company under the single management for BOST and TOR. As we speak, BOST receives no revenue from this operation and TOR is only limited to dividends declared and paid by the South African Company”, Mr Provencal had pointed out.
