Minister for Energy, Dr. Matthew Opoku Prempeh, has noted that State-Owned Enterprises (SOEs) can produce revenues, distribute dividends, and significantly contribute to the government’s fiscal objectives.
However, he emphasized the importance of having the appropriate leadership, attitude, and balance to make sure that these SOEs significantly advance in their respective areas.
The Minister said during the Bulk Oil Storage and Transportation Company’s (BOST) 2023 Annual General Meeting (AGM).
“I expressed satisfaction and admiration for the company’s financial accomplishments; moving from a negative equity position in 2021 to a positive one in 2022. This has put the company on a sound footing to pay dividends to the government”.
“This, indeed is a testament that, with the right leadership, attitude, and balance, State-Owned Enterprises (SOEs) can generate profits, pay dividends and make significant contributions to support the government’s fiscal policies. I congratulate the Board and Management of BOST for this remarkable feat”.
In order to ensure that BOST and, in fact, all SOEs in the energy sector live up to expectations, he announced that the Ministry of Energy would continue to work productively with stakeholders like SIGA and the Ministry of Public Enterprises.
A massive profit of GH342m was made by the Bulk Oil Storage and Transportation Limited Company (BOST) in 2022. So, from GH161 million in 2021 to GH342 million in 2022, BOST’s net profit margin improved.
The GH181m difference represents an increase in percentage of 112%.
“The transformation that BOST has undergone over the past three years is truly remarkable. The company has been turned from a heavily indebted one to a highly profitable one. In 2022, BOST increased its net profit by 112% to GH₵342 million from GHS161 million in 2021. This performance should be viewed in the context of a miserable run of losses which had been recorded for more than a decade until 2021,” the board chairman of BOST, Ekow Hackman, disclosed at the 2nd annual general meeting held in Accra on Thursday, August 17.
Hackman attributed the achievement to its strategic decision to revamp its business model.
“Central to our transformation has been the restoration of our business model, which involves the effective utilization of our strategically located fuel depots connected by a network of pipelines and barges. The revival of these assets has enabled us to deliver fuel products securely and cost-effectively to consumers across the country. Through the dedicated efforts of our management and workforce, we have significantly increased the revenue-generating assets of the company to 97% from a trough of 34% in 2017. We are committed to ensuring that 100% of our assets are generating revenue by the end of 2023.”
He added, “The increase in the BOST margin from 7 pesewas to 9 pesewas in December 2022 provided them with the necessary resources to repair and maintain BOST’s facilities, many of which are situated in areas where the private sector is absent.”