The Bulk Oil Storage and Transportation Company Limited (BOST) says it is positioning itself to take advantage of the US$970 million petroleum re-export market in the West African Sub-region.
This will help the country to mobilise extra revenue to cushion the depreciating cedi and increase the Company’s profitability.
Currently, BOST has strategic petroleum reserves that could take the country between 50 and 55 days.
Mr. Edwin Alfred Provencal, the Managing Director of BOST, announced this in Accra on Wednesday when he took his turn at a press briefing dubbed “The Minister’s Press Briefing.”
The MD of BOST said he took over the affairs of the Company in 2017 when it was in financial turmoil, owing foreign suppliers up to $624 million, loan indebtedness to domestic banks up to GHc416 million and Bulk Distribution Companies (BDCs) up to $37 million.
Also, the majority of its network of infrastructure including farm tanks, barges and pipelines were dysfunctional due to lack of maintenance, thus crippling its sources of revenue generation.
However, Mr. Provencal said with efficient operational management, coupled with a GHc30 million loan support from the National Petroleum Authority and BOST margin increase from three to six pesewas, BOST paid the $624 million trade liability to its foreign suppliers and made about GHC460 million profit after tax in 2021.
Moving forward in its business portfolio in the coming years, the MD of BOST said, it would move from just enhancing operational excellence towards aggressive growth in the business of transporting petroleum products across the country as well as to the landlocked nations like Burkina Faso, Mali and Niger to improve its sustainability and profitability.
More so, it would embark on rebranding of its corporate image, improve its corporate culture and human capital development as well as strengthen its trade partnerships.
Mr. Provencal noted that with support from the Ministry of Energy, petroleum hub facilities for storage purposes were being installed in the Western Region, while a-12-inch pipelines would be installed from Tema to Akosombo to improve the volumes of petroleum products from Tema Oil Refinery.
He gave the assurance that the rehabilitation of its dilapidated farm tanks and upgrading of depots would continue across the country in 2023.
Also, all individuals found culpable for various financial malfeasance after the audit of its financial statements either resigned or undergoing disciplinary action.
He gave the assurance that the Company had instituted stringent measures to avert future contamination of its petroleum products.