The deal, signed in August 2022, has been a game-changer for the state-owned enterprise, contributing significantly to its record revenue of P2.6 billion in the 2022–2023 financial year, an increase from the P570 million achieved in the previous year.
The partnership, valued at P8.5 billion, involves the supply of fuels to Debswana’s mines through Botswana’s Citizen Economic Empowerment Programme (CEEP), which leverages citizen-owned transporters. The collaboration added 75 million litres to BOL’s overall sales volume of 187 million litres in the year, making it a key driver of the company’s profitability.
According to BOL’s recently released annual report for the year 2022–2023, the group’s net profit after tax surged to P99 million, a stark contrast to the P17.3 million net loss recorded in the prior year. The deal not only bolstered sales volumes but also helped revise mid-year targets upward, increasing revenue from the initially budgeted P1.8 billion to P2.6 billion by year-end.
“This good performance was mostly due to the new partnership BOL entered into with Debswana as well as a number of new contracts from International Oil Companies, which boosted sales volumes and revenue,” Botswana Oil CEO, Meshack Tshekedi noted.
Additionally, BOL benefited from a government refund of P35.7 million for depot management fees accrued between 2017 and 2022, as well as interest income from healthy cash reserves.
Tshekedi further noted that sales volumes underwent a significant revision from 130 million litres to 173 million litres mid-year. This was a direct response to Debswana’s increased consumption and the overall surge in demand from International Oil Companies and Citizen-Owned Oil Companies in the wake of supply disruptions in the market.
In the fourth quarter, BOL further bolstered its volumes, entering into a sales contract with Vivo and Kwa-Nokeng, which propelled the volumes from 173 million litres to 187 million litres.
Going forward, the CEO said emphasis will also be placed on expediting the takeover of the aviation fuel facilities to ensure the security of the supply of aviation fuels in the country.
In addition, BOL will work on progressing to the next phase of the Ikaegeng Coal to Liquid Project. The objective of the project is to construct a Coal to Liquids facility to produce petroleum products for Botswana using local coal with the objective of improved energy security for the country. Due to the complexity of the project, the facility is being procured through the Public Private Partnership model.
