'Discard misleading report, we made pre-tax profit in 2020' – BOST MD insist

Mr. Edwin Provencal, BOST Managing Director

The Bulk Oil Storage and Transportation Company Limited (BOST) on Monday insisted that it made a pre-tax profit in 2020.

The company has called on the stakeholders to discard misleading reports purportedly linked to the State Interests and Governance Authority (SIGA).

The BOST management has reiterated that it achieved a profit before tax of GHS9,844,673 versus an estimated GHC30million in 2020 as against a loss of GHS158,478,676 in 2019.

“The positive net profit before tax attained in 2020 implies a massive turnaround of the operational fortunes of the company,” Mr. Edwin Provencal, BOST Managing Director stated during a media engagement to refute the purported loss of GHC400 million being speculated in a session of the media.

According to BOST MD the management of the company has taken notice of a series of publications making the rounds on several online portals suggesting that contrary to an announcement that BOST has made an operating profit, a purported report from SIGA indicates BOST has incurred losses to the tune of GHC400 Million.

Mr Provencal explained to newsmen as monitored by Communication for Development and Advocacy Consult (CDA Consult) in Tema that during a presentation in Accra, when he took his turn at the maiden weekly media engagement series for State-Owned Enterprises (SOEs) explained that the profit was attained in 2020 through the efforts and sacrifices of staff, management, and the board.

The programme, organised by SIGA, was aimed at enabling the SOEs’ CEOs share success stories with their various stakeholders and the citizenry.

Mr Provencal reiterated that “though BOST Management budgeted to make a loss of GHC86 million, we did not only get to zero, but we crossed zero and made GH¢31 million profit”.

The BOST MD said the strategy was to enhance operational excellence and aggressively promote businesses.

“We think there is good opportunity for BOST. We think BOST can work and we know it can work because we’ve seen things turning around.

“The thing about government institutions is that when government institutions work very well, we create a private sector drive, because the private sector depends on the government,” he emphasised.

“We, by this publication, seek to correct the erroneous impressions created by the publication and wish to set the record straight,” he said.

He said BOST is profitable the purported report of the GHC400 million losses is not accurate, “to measure the profitability and operational efficiency of a business one must determine whether the underlying operations (core business) of the company are profitable”.

Mr Provencal explained unpaid tax obligations over the five-year period to date, the reduction in the value of its shares at GOIL Company Limited, and forex difference on dollar-denominated loans may turn the profit before tax into a net loss for the period.

“This enhanced performance was driven by extensive operational efficiency initiatives including, but not limited to massive repair works of our storage tanks, pipelines and marine assets, replacement of outmoded parts across the facilities of the company in the last two years supported by improved marketing and customer service,” he said.

Mr Provencal, therefore, reiterates the fact that BOST is on its way to becoming a profitable state-owned enterprise and nothing will derail the resolve of management and staff to achieve this.