The Bulk Oil Storage and Transportation Company Limited (BOST) has in the last 2 years increased its revenue-earning assets from 17 percent to 75 percent
The Managing Director of BOST, Edwin Alfred Provencal announced this during Information Minister’s Press Briefing in Accra yesterday.
According to him, BOST in the past few years has undergone financial restructuring that has allowed it to carry out its core mandate and generate the needed revenue for government.
He said the financial turnaround strategy implemented at the fuel logistic company is one that has been able to transform the company from a loss-making state enterprise to a profit-making entity such that it is able to pay dividends to shareholders.
“When we took over, we decided that with respect to our financials, we are going to move away from a loss-making organization which we were and start a journey towards profitability. We also wanted to move away from a low capitalized company whose capital is put to good use. So, we started a journey of capitalizing the assets that has been given to us to ensure that we get returns for the good people of Ghana,” he indicated.
The MD indicated that the management of BOST is putting in place measures to revamp the company to assume the position of best fuel logistic provider in the sub-region by 2024.
Reduction in trade liabilities
In connection with BOST trade liabilities, Mr. Provencal said the company has reduced its trade liabilities by over three-quarters.
He said BOST has been able to pay some $585 million out of the $624m which was in arrears back in 2017 stressing that about 73 percent of these liabilities were offset using internally generated funds by June 2021
Mr. Provencal also announced that his outfit will soon take delivery of new pipelines to boost its operations.
The pipelines which are expected in the country from the U.S. will increase the Tema-Akosombo pipeline capacity from the current 6 inches to 12 inches increasing its fuel distribution capacity to 530 percent per hour relative to the 40 cubic meters it was producing per hour previously.
He said with these new pipelines, BOST will be able to increase it distribution capacity, rack in more revenue, provide excellence service and generate dividends.