The Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin 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, one that is achieving sustainable profits while reducing systemic wastes.
“We have put in place some 15 policies that is now guiding our behavior 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, 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.
He said this when he addressed a press conference put together by the Ministry of Information in Accra on Wednesday, October 5, 2022.
Debt
BOST, prior to 2020 was saddled with more than half a billion-dollar debt comprising of 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.
Turnaround strategy
Touching on the turnaround strategy, Mr. Provencal said aside 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 also disclosed 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 global oil supply.
