Minister for Public Enterprises, Joseph Cudjoe, has highlighted three measures that could help turn around the fortunes of State-owned Enterprises (SOEs) that have failed to break-even.
According to the minister, leveraging technology forms part of the measures needed to make sure the management of SOEs can make huge profits from the substantial assets they possess.
The second has to do with improving the services rendered.
The last but not least measure requires management to come up with innovative products that are aligned with the government’s digitalization agenda.
Mr Joseph Cudjoe made this revelation during the 2nd Annual Meeting of the Bulk Oil Storage and Transportation (BOST) company on Thursday, August 17, 2023.
He made the recommendations after it emerged that BOST observed significant growth in its operations in 2022.
The company saw a 112 percent rise in its net profit after income tax from GHS160 million in 2021 to over GHS342 million in 2022. Board Chair of BOST, Ekow Hackman, made this known.
The company’s operational income increased by 69 percent from GHS254 million recorded in 2021 to GHS428 million. This was on the back of a 77 percent increase in revenue from GHS1.121 billion in 2021 to GHS 3.019 billion in 2022.
Revenue from fuel product sales saw an increase of 387 percent in 2022 compared to 2021. Revenue from gasoline sales increased by 224 percent, from GHS 340,633,871 to GHS 1,103,299,371, whilst gasoil sales increased by 352 percent, from GHS 331,063,261 to GHS 1,495,912,905.
This positive trading performance, according to Mr Hackman, can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives, as well as the prudent management of trading risks.
According to the Public Enterprises Minister, BOST’s growth vindicates his “preposition during my visits to various public enterprises last year, that with the right balance, management of SOEs can make huge profit from the substantial assets they possess.”
But he said, unfortunately, some SOEs are unable to leverage their assets effectively to break even, generate sufficient revenue, and pay dividends to the government.
Meanwhile, Mr Cudjoe has commended the management of BOST for being able to achieve this goal, two years ahead of schedule.