The Bulk Oil and Storage Company (BOST) recorded a meteoric increase in profit after tax from Ghc 2m in 2020 to Ghc 164m in 2021, a stunning rise of 8,200%.
The remarkable figure has stunned experts and analysts whilst BOST attributes it to increasingly prudent administrative practices.
BOST has also reportedly settled USD 611 million out of a debt portfolio of USD 622.7 million dollars.
The company expects to clear the remaining 11.7 million dollars by the end of 2023, according to Head of Corporate Communications and External Affairs at BOST, Marlick Adjei.
Cost Cutting Measures
BOST achieved its meteoric increase in profit margin twofold – first by an increase in the raw profit figures and secondly by reducing its expenditure.
BOST cut down administrative expenses from Ghc 538m in 2016 with a staff strength of 347 to Ghc 228m in 2021 with a staff strength of 496.
The company also increased revenue generated from the Ghs632.7 million recorded in 2020 to Ghc 1.12 billion recorded in 2021.
The double whammy of reduced administrative costs and ballooning revenue generated led to the massive jump in profit after tax.
BOST has also undertaken measures to supercharge its operations and enable it better carry out its mandate including rehabilitation of 12 of its 15 storage tanks which stood decommissioned as at January 2017, revamping of its transmission lines and the rehabilitation of the tugboat and barges – all of which significantly contributed to the revenue streams of the company.
BOST was ranked 8th on the Public Enterprises League Table in 2020, a testament to its performance in the year under review.