The Bulk Oil Storage and Transportation Company (BOST) has turned a corner from its history of losses, now reporting steady profits, according to its Managing Director, Edwin Provencal.
Addressing journalists in Accra on Wednesday, Provencal highlighted the company’s journey toward operational efficiency and financial prudence, resulting in a significant reduction in administrative expenses and a steady rise in profitability.
Mr. Provencal noted that in 2016, BOST’s administrative expenses reached a high of 538 million cedis.
Given inflation and foreign exchange impacts, these costs would be expected to have more than doubled by 2023.
However, through careful financial management, administrative costs were reduced to 209 million cedis in 2020, 228 million cedis in 2021, and 342 million cedis in 2022—all well below 2016 levels.
"This is what we term prudence and operational efficiency," he explained.
"Despite inflationary pressures, we have kept our administrative costs significantly lower than they were seven years ago."
The reduction in expenses has directly contributed to the company’s profitability. In 2022, BOST achieved its highest profit after tax, recording 342 million cedis.
In 2021, it earned 161 million cedis, followed by 208 million cedis in 2023.
Mr. Provencal emphasized that BOST has successfully emerged from its loss-making past, now generating profits that directly support Ghana’s fiscal policies.
"Going forward, BOST should no longer be a loss-making entity," he stated.
"Every cedi of profit we make is one less cedi the government needs to borrow, reinforcing our commitment to value creation for the people of Ghana."
Mr. Provencal's address marks a new era for BOST, positioning the state-owned enterprise as a stable, profit-generating asset that is expected to continue contributing to Ghana’s economic resilience.
Story by: Joshua Kwabena Smith
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