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BOST Holds 3RD Annual General Meeting - AGM 2024

Company Records Impressive Financial Results

The Bulk Energy Storage and Transportation Limited Company (BOST) has maintained a steady financial growth trajectory over the past three years, amassing a cumulative profit of GH₡710 million.

The company’s profit for the 2023 financial year was GH₡208 million, compared to GH₡342 million in 2022 and GH₡160 million in 2021.

Board Chairman, Mr. Ekow Hackman addressing the AGM.

BOST’s equity position also improved from a negative GH₡248 million in 2021 to a positive GH₡ 277 million in 2023, laying a robust foundation for future growth. The company’s overall financial performance is largely attributed to prudent management.

At the company’s Annual General Meeting (AGM), BOST Chairman Ekow Hackman explained the company’s reduced profit in 2023 compared to 2022. He highlighted BOST’s unique role in the Government’s GOLD FOR OIL(G4O) Programme, which aimed to mitigate the impact of Foreign Exchange fluctuations and rising inflation. The programme’s operation in 2023 resulted in a reduction in the price of a litre of Diesel from over GH₡23 to an average of GH₡14.

Hackman noted that the company’s reduced profitability in 2023 should be seen in the context of the government’s deliberate policy to shield the Ghanaian consumer from the adverse effects of imported inflation.

He commended the company’s management for playing a vital role in implementing this strategic government policy while meeting the operational and investment obligations of the company.

The volumes of fuel products traded by BOST increased by 235 per cent from 318.3 million litres in 2022 to 1.1 billion litres in 2023. The company’s market shares also increased to 29 per cent in 2023 from eight per cent in 2022. The value of fixed assets also increased from GH₡ 1.478 billion in 2022 to GH₡1.620 billion in 2023.

Looking ahead, Hackman pledged the company’s commitment to continue investing in human capacity, adopting new technology, including Artificial Intelligence (A.I.), to enhance efficiency and productivity.

The diversification of energy products, he said, will be key to managing the Energy Transition, which is required to achieve net zero carbon emissions. The company’s next Strategic Plan will be centered around these broad policies.

The Minister of Public Enterprises, Joseph Cudjoe, expressed hope that BOST’s management will continue on this path to eventually pay dividends to the government, in line with the vision of President Nana Addo Dankwa Akuffo Addo.

He also acknowledged the significant role the company has played in implementing the Gold for Oil programme.

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Minister of Public Enterprise impressed by BOST financial performance

The Minister of State for the Ministry of Energy, Herbert Krapa, lauded BOST’s achievements, noting that the company is now positioned to pay dividends to the government of Ghana in the immediate future.

He highlighted the significant impact of BOST on petroleum product prices and inflation in the country, particularly through its leadership in implementing the Gold for Oil Program spearheaded by the Vice President, Dr Mahamadu Bawumia.

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Minister of Energy, Mr Herbert Krapa addresseing the meeting

The Director-General of the State Interest and Governance Authority (SIGA), John Boadu, acknowledged the fiscal and infrastructural challenges, and noted that there is room to improve financial performance and drive further growth. He expressed confidence in the success story of BOST, given the alignment of interests among the Board of Directors, the government, and the management.

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Director General of SIGA addressing the meeting

Looking forward, BOST’s Managing Director, Edwin Provencal, expressed excitement about the company’s strategic plan and its potential for the future.

He stated, “I am excited to see our strategy yielding the required gains for the shareholder and the Ghanaian taxpayer. I believe that the company has a very bright future. With our strategy, we are ready to embrace the great opportunities that lie ahead, and we are committed to continue delivering value for all our stakeholders.

(Credit: BNFT/bost-corpcom 2024)

Energy minister lauds BOST for supporting economic stability.

The Minister of Energy, Dr. Mathew Opoku Prempeh, underscored the critical role played by the Bulk Oil Storage and Transportation Company (BOST) in fostering economic stability over the past few years.

Speaking at an event to commemorate the 30th anniversary of BOST in Accra, Dr. Opoku Prempeh highlighted the state-owned firm’s contributions to economic stability, particularly under the government’s flagship Gold-for-Oil (G40) policy. The G40 initiative allows BOST to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank, according government.

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The Minister of Energy, Dr. Mathew Opoku Prempeh speaking at the Thanksgiving Service

Under the programme, the government said payment for the oil is done in two channels: barter trade or via forex obtained from selling gold to a broker.

Under the barter channel, suppliers willing to take gold in direct exchange for petroleum products will be provided with the equivalent volume of gold by the Bank of Ghana (BoG).

Meanwhile under the broker channel, the BoG executes a gold supply agreement under which it sells gold to a gold broker, which provides forex cover to pay for petroleum products.

“By eliminating a significant portion of the monthly demand for dollars in our domestic economy, we have successfully stabilized the foreign exchange and petroleum products prices in,” the energy minister said,

He credited the stability in the forex market to the central role BOST plays in storing, transporting and distributing imported petroleum products in the country.

Dr. Opoku Prempeh, who was speaking at a “Thanksgiving Service” to mark the 30th anniversary of BOST, reckoned that the policy intervention has been a huge success. “This achievement has ensured that our economy remains resilient and robust by permitting reliance on the Ghana cedis in the importation of petroleum products to meet national demand,” he said.

The sector minister therefore described BOST as a shining example of excellence in management of public enterprises. Having returned to profit in the past two fiscal years after more than a decade of losses, Dr. Opoku Prempeh attributed the success to visionary leadership, strategic planning and dedicated teamwork.

For instance, the company reported two consecutive years of profit – US$163 million in 2021 and US$343 million in 2022.

He said BOST represents one of the most successful stories under his tenure as a minister, highlighting the challenges that confronted the company a few years ago.

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The Board of BOST, Management, Staff and invited guests seated at the Church event

The company, he said, was previously burdened with debts and for almost a decade, it had been suffering losses. Additionally, more than 50 percent of its depots were non-functional and only 18 percent of the revenue-earning assets were active and all of its pipelines were down.

Looking ahead, he said BOST will be a key player in the country’s energy transition agenda. “Our goal is to create an energy sector that prioritises sustainability and efficiency”.

The Thanksgiving Service to mark the 30 years of the establishment of BOST was held at the Cathedral Church of the Most Holy Trinity, in Accra and was led by Rt. Rev. Dr. Daniel Sylvanus Mensah Torto.

In his remarks during the church service, the chairman of the board of directors of BOST, Ekow Hackman, acknowledged that it was worth celebrating 30 years in the life of a company, especially given the current challenges that often limit a company’s lifespan.

He said BOST until recent times, was on the brink of collapse but with the support and dedication of the board, management and staff, the company has managed to come out of its looming corporate demise.

The Managing Director of BOST, Dr. Edwin Provencal, on behalf of the board and management of BOST, donated GH₵500,000 to the Holy Trinity Cathedral Senior High School (HOTCASS), in Accra, in support of the renovation of one of the blocks of the school.

BOST Celebrates 30th Anniversary with thanksgiving service

The Bulk Energy Storage and Transportation Limited Company, BOST held a thanksgiving service over the weekend to commemorate the 30th anniversary of its existence. The event was to give thanks to God for his grace and mercies for keeping the company alive and thriving despite the myriad of challenges it has faced in the course of the three decades.

The event was held at the Most Holy Trinity Cathedral, Accra High Street.
Addressing the gathering, the chairman of the board of directors, Mr. Ekow Hackman who likened the situation of BOST in recent past to the corporate equivalent of the ‘Valley of the shadow of death’ stressed that, the company has every reason to be thankful to the Lord.

Chairman of the board of directors, Mr. Ekow Hackman addressing the congregation.

He outlined that, the average lifespan of Fortune 500 companies listed on the New York Stock Exchange has declined from 61 in 1958 to 17 years by 2018 according to recent research on corporate insolvency in the United States. Thirty years of existence as a corporate entity is therefore no mean a milestone and giving thanks to God for same is in the right direction.

He expressed the hope that since the world is a stage and ‘men’ are the actors as Shakespeare said, their contribution to the fortunes of the company shall echo positively in the years to come.

He on behalf of the board and management of the company entreated all present to thank God for the milestone and the energy, wisdom and determination of the board, management and staff of BOST to keep advancing the company from strength to strength.

Addressing the gathering, the Minister of Energy, Dr. Matthew Opoku Prempeh described BOST as a shining example of state-owned enterprise management excellence which should inspire the remaining SOEs to up their game to make meaningful contributions towards the development of the nation. He added that, given the situation of the company in the recent past, paying off the accrued debts to suppliers, BDCs and the domestic banks in a record time to declare two successive years of profit merit every thanks to God for granting the individual players the knowledge, wisdom, and will-power to steer the affairs of the company.

Minister of Energy, Dr. Matthew Opoku Prempeh addressing the gathering

He added that, the pivotal role BOST has played in the implementation of the Gold for Oil policy which is targeted at stabilizing the foreign exchange, petroleum process and to stall inflation is a testament to the fact that SOEs have the capacity to do what is needful to advance the course of the nation; leadership is just what makes the difference.

The Managing Director, Dr. Edwin Alfred Provencal expressed gratitude to all who in diverse ways have helped shape the BOST story with a promise to continue doing more until the mandate is achieved and exceeded.

A cheque of Five Hundred Thousand Ghana Cedis(GHS500,000.00) was presented by the Managing Director to the church as the contribution of BOST towards the resuscitation of the dilapidated infrastructure at the Holy Trinity Cathedral Senior High School.

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BOST MD, Dr. Edwin Alfred Provencal presenting the cheque to the Holy Trinity Cathedral

Plaques were presented to the foundation board and staff of the company for sowing a seed which has grown into a preferred partner in the energy sector of Ghana. The founding Managing Director, Dr. Kwabena Donkor was among the individuals who were recognised for their efforts in seeing the BOST vision come to reality.

The all-white event which started at the Most Holy Trinity Cathedral was witnessed by about 500 persons including staff and members of the media fraternity.

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Staff celebratinrg as they dance in a queue through the church

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The Managing Director with a few staff in a group picture

BOST MD Crowned 2023 Energy Personality Of The Year

The Managing Director of Bulk Energy Storage and Transportation (BEST) Company Limited, formerly BOST, Edwin Alfred Provencal, was on Friday night (17th November 2023), crowned as the 2023 Energy Personality of the Year at the 7th edition of Ghana Energy Awards held at the Labadi Beach Hotel in Accra, the capital of Ghana.

He faced stiff competition from Dr. Ben K.D Asante , CEO of Ghana National Gas Company; Dr Ismael Ackah Ph.D, Executive Secretary of Public Utilities Regulatory Commission (PURC), Joseph Kweku Horgle, Chief Executive Officer of JK Horgle Transport & Company; Michael Bozumbil, Chief Executive Officer of Petrosol Ghana , Samuel Kofi Dzamesi, Chief Executive Officer of Bui Power Authority and Dr. Mustapha Abdul-Hamid, Chief Executive Officer of National Petroleum Authority (NPA).

The president Nana Addo Dankwa Akufo-Addo (in the middle) flanked by our Managing Director.

Last year Mr. Provencal was crowned the petroleum sector CEO of the year 2022 at the 6th Edition of Ghana Energy Awards.
BOST is a state-owned petroleum strategic stock company mandated to keep strategic stocks for the West African nation.
Mr. Provencal was appointed Managing Director of BOST in August 2019 by President Akufo-Addo after the late George Mensah Oakley was relieved of his position as MD of the company.

At the time he assumed office, BOST’s assets, such as pipeline infrastructure, storage tanks, barges, tugboats and other vital installations had been abandoned for years without repairs.

Besides, BOST was saddled with huge legacy debts which dated back under the previous government.

However, the sordid state of the company had changed with the company seeing massive improvements.

From a loss-making company, BOST has seen a turnaround with the company posting Gh¢31 million profit in 2020, Gh¢161 million profit in 2021 and a net profit of Gh¢342 million in 2022.

President of Ghana, Nana Akufo-Addo presented the award to Mr. Edwin Provencal.

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The President presenting Mr Provencal with the Energy Personality of the Year 2023 Medal.

The award came along with a beautiful, designed stool bearing the inscription Energy Personality of the Year.

Apart his award, BOST was also adjudged Energy Company of the year.

Commenting on the award, Mr. Provencal praised the board and management team of the company for their wonderful contributions towards turning around the fortunes of the company.

He assured that there is no turning back stating that State Owned Enterprises have what it takes to be profitable as evidenced by the performance of BOST over the last couple of years.

“Immensely proud and humbled by the honors received at the Ghana Energy Awards last night. I was awarded Energy Personality of the Year, with BOST winning Petroleum Company of the Year. Thanks to H.E. President Akufo-Addo for the recognition, and to my team at BOST for their exceptional work.

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Mr Provencal received the Citation of the Award from the President of the Republic of Ghana

“Congratulations to all the awardees for their inspiring achievements. Grateful to the Ghana Energy Awards for this esteemed acknowledgment, driving our commitment to excellence in the energy sector,” Mr Provencal.

Energy Minister kicks against privatizing BOST after Gh¢342m profit

According to him, there is the tendency to push for the privatization of State Owned Enterprises that begin to post profit.

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The BOST Board of Directors at the AGM

Speaking at the second Annual General Meeting ( AGM) of the Bulk Oil Storage and in Accra yesterday , Dr Opoku Prempeh, reiterated the need to keep BOST in the hands of Ghanaians who continue to make profits for the company since 2021.

From a company which has made losses to the tune of Gh¢400million over the years to now making a whopping Ghc342m profit, the Minister said this achievement is enviable which need commendation

In view of this impressive performance, the Minister stressed the need to safeguard the company and keep it out of any discussion for privatization.

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Some members of the Civil Society Groups, the MD of BOST and the minister of Energy.

“ It is very noteworthy that after making a profit of Gh¢161 m in 2021 , the company has significantly increased its profit to Gh¢342million in 2022, an impressive growth of 112%”, he pointed out.

Aside this performance, the Minister indicated that this growth, further puts BOST in a position of paying dividends to government.

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A delegation from the traditional council, Minister for Energy and Management of BOST.

He was optimistic and therefore encouraged BOST to increase the momentum and even strive better.

“ BOST’s success contributes to the fiscal policies of the government and supports our national growth and development agenda, “ he added.

He used the occasion to urge all other SOEs to replicate the performance of BOST.

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Senior Management of BOST at the event

Outlining some of the infrastructure and facility expansion of BOST, Dr Opoku Prempeh, who is widely known as Napo, attributed it to the upward revision of the BOST margin from 7 to 9 pesewas.

Some of these expansion of facilities, he mentioned are the commissioning and operationalization of the Tema- Akosomb opetroleum pipeline, repair and commissioning of tanks at Accra plains depot among others.

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Some invited Key stakeholders

On his part , the Board Chairman for BOST, Mr Ekow Hackman, connected the successes to ensuring stakeholder satisfaction , improving asset utilization and reducing turnaround time of Bulk Road Vehicles .

He said, the Board has ensured that there is safety and protection at their depot and pipelines which he described as paramount

Moving forward, he promised to work towards automating their depots which unfortunately has stalled for some time now.

“ Furthermore, we have concluded the Front- End Engineering Design ( FEED) for the Tema- Kumasi Pipeline Project and look forward to partnering with the private entities to construct this pipeline “, he added.

This project, he indicted will equally help reduce the company’s carbon footprint and in addition to the planned construction of the LPG tanks.