BEST Attributes Shortfall In Projected GHS 1 Billion Profit to External Shocks

Dr. Edwin Alfred Provencal, Managing Director of Bulk Energy Storage and Transportation Company Limited (BEST), formerly known as BOST, has disclosed a significant shortfall in the company’s projected profits for the 2023 fiscal year.

Initially anticipating a profit of approximately GHS 1 billion, BEST recorded a more modest GHS 208 million, attributed to a confluence of external pressures including the Russia-Ukraine conflict and lingering disruptions from the COVID-19 pandemic.

In an interview with Accra-based Citi FM, Dr. Provencal elaborated on the impact of these unforeseen challenges, noting that the company was compelled to suppress its margins in a bid to address broader national economic issues.

“Given the volume of business conducted in 2023, we were on course for a profit exceeding GHS 1 billion. However, due to necessary interventions, our margins were constrained to ensure the national problem was managed,” he remarked.

Dr. Provencal highlighted that 2022 had been devoid of such external shocks, allowing the company to report a robust profit of GHS 342 million.

In contrast, 2023 was marked by the onset of geopolitical and economic challenges, necessitating government intervention through institutions under its control.

Despite the setbacks in 2023, BOST remains a rare example of a state-owned enterprise in Ghana consistently delivering profits.

The company’s performance has been noteworthy, with profits rising from GHS 160 million in 2021 to GHS 342 million in 2022, before the decline to GHS 208 million in 2023.

This resilience underscores BOST’s strategic importance and its ability to navigate a challenging macroeconomic environment.

Source:norvanreports.com