BEST posts GH₵208m profit in 2023

Bulk Energy Storage and Transportation Company Limited (BEST) posted a profit of GH₵208 million for the 2023 financial year, marking a decline from the GH₵342 million recorded in 2022.
Despite this decrease, the company has shown a strong financial recovery since 2021, when it returned to profitability with GH₵160 million after several years of losses.

GH₵710m profit in 3 years
Over the past three years, BEST has accumulated total profits of GH₵710 million.
This consistent financial growth was announced at the company’s Annual General Meeting (AGM) in Accra.

GH₵277m equity
Addressing the AGM, Chairman of BEST, Mr. Ekow Hackman, highlighted the company’s strengthened equity position, which improved from a negative GH₵248 million in 2021 to a positive GH₵277 million in the year under review.
This solid foundation positions BEST for future growth.

Prudent management practices
Mr. Hackman attributed the overall financial performance of BEST to prudent management practices.

Unique role of BEST in Gold for Oil
He also emphasized the unique role of BEST in the Government’s Gold for Oil (G4O) Programme, introduced by the Bank of Ghana (BoG) to mitigate the impact of foreign exchange fluctuations and rising inflation.
In 2023, the G4O programme led to a reduction in the price of a litre of diesel from over GH₵23 to an average of GH₵14.
He explained that the reduction in profitability compared to 2022 should be viewed within the context of the government’s deliberate policy to cushion Ghanaian consumers from the adverse effects of imported inflation.
Mr. Hackman commended the management of BEST for their role in assisting with the implementation of this strategic government policy while also meeting the company’s operational and investment obligations.
Under the G4O programme, BEST received a fee for trading the requisite volumes of products from the Bank of Ghana (BoG), with revenue and expenditure recognized by the BoG.
This differed from the company’s usual trading activities, where revenues and costs of the fuel trade are recorded in the company’s books.

GH₵10.17 billion turnover from the G4O trade
The increase in turnover from the G4O trade was significant, rising by 237% from GH₵3.02 billion in 2022 to GH₵10.17 billion in 2023.

Market share rises from 8% to 29% in 2023
Mr. Hackman reported that the company’s market share increased to 29% in 2023, up from 8% in 2022.

GH₵1.620bn in fixed assets
The value of fixed assets also grew from GH₵1.478 billion in 2022 to GH₵1.620 billion in 2023.

1.1 billion litres of fuel products traded in 2023
The volume of fuel products traded by BEST increased by 235%, from 318.3 million litres in 2022 to 1.1 billion litres in 2023.
Looking ahead, Mr. Hackman pledged the company’s commitment to continue investing in human capacity to foster a culture of continuous development and learning.
He also emphasized the adoption of new technology, including Artificial Intelligence (A.I.), to enhance efficiency and productivity.
The diversification of energy products will be key to managing the Energy Transition required to achieve net zero carbon emissions. The company’s next Strategic Plan will focus on these broad policies.

Dividend
The Minister of Public Enterprises, Joseph Cudjoe, expressed hope that the management of BEST will continue on this path and eventually pay dividends to the government, aligning with the vision of President Nana Addo Dankwa Akufo-Addo.
He acknowledged the significant role the company has played in implementing the Gold for Oil programme.
According to him, “This policy addresses the pressures on the exchange rate, rising petroleum prices, and inflation, which lead to increased prices of goods and services in the country.”

Room for improvement
The Director-General of the State Interest and Governance Authority (SIGA), John Boadu, recognized the fiscal and infrastructural challenges but firmly believed there is room to improve financial performance and drive further growth.
He emphasized that with innovative thinking, perseverance, and teamwork from all stakeholders, even more can be achieved.

Looking forward
Managing Director of BEST, Edwin Provencal, discussed the company’s strategic plan, expressing excitement about the positive outcomes for shareholders and the Ghanaian taxpayer.
He stated, “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 continuing to deliver value for all our stakeholders.”