Business News of Monday, 27 September 2021
Source: rainbowradioonline.com
2021-09-27
Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Provencal
The Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Provencal, has disclosed that the state body has in the last two years increased its revenue earning from 17% to 75%.
Mr. Provencal addressing journalists over the weekend disclosed that BOST has in the past two years undergone a financial restructuring that has paved the way for it to carry out its core functions and mobilize the needed resources for the government.
According to him, the financial turnaround strategy implemented at the fuel logistic company has transformed from a loss-making state enterprise to a profit-making body.
He said BOST is able to pay dividends now to its 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 away from a low capitalized company whose capital is put to good use.
So, we started a journey of capitalizing the assets that have been given to us to ensure that we get returns for the good people of Ghana,” he added.
He further added that BOST is on course in putting in place measures to revamp the company to assume the position of best fuel logistic provider in the sub-region by 2024.
He said the company has also reduced its liabilities by over three-quarters.
He revealed at the press conference that BOST had paid some $585 million out of the $624 million which was in arrears back in 2017 stressing, that about 73% of these liabilities were offset using internally generated funds.
New Pipelines
He announced that BOST will soon take delivery of new pipelines to boost its operations.
Mr. Provencal said the pipelines are expected to come from the US and it will help 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.