The Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST), Mr. Edwin Alfred Provencal has attributed the state-owned strategic petroleum storage distribution company’s recent successes to some 15 new policies introduced by the managers of the company.
According to him, the newly introduced policies are turning the company into an operationally efficient company that is achieving sustainable profits while reducing systemic waste.
“We have put in place some 15 policies that are now guiding our behaviour in the company and I can say that is one of the key drivers of performance at BOST. Some of the policies include a bonus policy, an HR policy, a finance policy, field operations, a health and safety policy, ethics policy amongst others. We have also put in place a risk and task compliance unit that ensures that we identify risks and mitigate them before they become challenges,” he said.
The MD made the disclosure at the bi-weekly Minister’s Press Briefing organised by the Ministry of Information in Accra yesterday.
BOST, prior to 2020 was saddled with more than half a billion-dollar debt comprising trade liabilities, legacy loans, debt owed to Bulk oil Distribution Companies (BDCs) and capital expenditure liabilities.
However, the company has turned its fortunes around recording a total revenue of GH¢1.12 billion in 2021, which was almost double the GH¢632 million recorded in 2020.
Out of that amount, GH¢671.6 million came from product sales, GH¢380.4 million from the BOST Margin, GH¢52.64 million from storage and rack, GH¢14.83 million from marine transportation, with GH¢2.07 million coming from products swap.
Touching on the turnaround strategy, Mr. Provencal said apart from paying down most of its debts through various interventions, the company has reintroduced its storage tank system bringing back 12 out of its 15 tanks, revamped its transmission pipelines and rehabilitated its tugboats and barges, which are all contributing to the revenue streams of the company.
50 To 55 Days of Petroleum Reserves
Mr. Provencal disclosed also that the total volumes of fuel available in-country as of October 5, 2022, was equivalent to 50-55 days of national demand. This, he said gives the country cover and comfort in the event of severe disruptions to the global oil supply.
The BOST Managing Director revealed that Ghana has a comparative advantage over its neighbours and the company is re-positioning itself in order to tap into the US$970 million petroleum re-export market in the West African Sub-region. This move, he said would help the country to mobilise extra revenue to cushion up the depreciating cedi and also increase the company’s profitability.
Source: MOI (PR Unit)