The Volta River Authority (VRA) achieved a net profit of GHS88.04 million in 2025. This marks a significant financial turnaround for the state-owned power generator. It reverses a net loss of GHS105.75 million recorded in the previous year, 2024.
This return to profitability was largely due to a substantial foreign exchange gain. VRA recorded a net foreign exchange gain of GHS236.60 million in 2025. This contrasts sharply with an exchange loss of GHS694.67 million in 2024. The improved financial performance strengthened VRA's ability to meet its short-term financial obligations.
The VRA's improved financial health is a notable development for Ghana's energy sector. It reflects the impact of currency fluctuations on state-owned enterprises. The State Interests and Governance Authority (SIGA) highlighted this in its 2025 State Ownership Report. This report provides crucial insights into the performance of public entities. The VRA's financial stability is vital for Ghana's power supply and economic growth.
The State Interests and Governance Authority (SIGA) confirmed these figures in its 2025 State Ownership Report. SIGA monitors and evaluates the performance of state-owned entities. Their report provides a transparent overview of VRA's financial health. This official attribution lends credibility to the reported turnaround.
This financial recovery will likely influence investor confidence in Ghana's energy sector. Decision-makers will closely monitor VRA's ability to sustain profitability without relying heavily on foreign exchange gains. Future efforts to improve electricity generation and cost management will be crucial. This will ensure long-term financial stability for the Authority.
Despite the net profit, VRA's underlying operational performance showed some weaknesses. Total revenue declined marginally from GHS9.54 billion in 2024 to GHS9.48 billion in 2025. Operating revenue fell by 3.70%, from GHS9.29 billion to GHS8.95 billion. This decline was primarily due to lower electricity generation and supply. Power generation decreased from 13,922 gigawatt-hours in 2024 to 12,926 gigawatt-hours in 2025.
VRA's core operating profit also saw a sharp decline. Operating profit plunged by 96.3%, from GHS814 million in 2024 to just GHS30 million in 2025. The operating profit margin consequently dropped from 8.54% to 0.33%. This indicates that the foreign exchange gain was the primary driver of the net profit. It masked a weaker performance in core business operations.
The Authority's operating cash flow, however, showed significant improvement. Net cash flow from operating activities surged from GHS31 million in 2024 to GHS1.58 billion in 2025. This substantial increase strengthened VRA's short-term debt coverage. It rose from 0.13 times in 2024 to 6.45 times in 2025. This indicates a much stronger ability to meet immediate financial obligations.
VRA also managed to reduce its interest-bearing liabilities. These liabilities declined by 33.64%, from GHS3.04 billion in 2024 to GHS2.02 billion in 2025. This represents a reduction of approximately GHS1.02 billion. However, total debt and liabilities increased slightly from GHS26.29 billion to GHS26.66 billion. This was due to a rise in trade and other payables.
Total assets for VRA declined by 16.28%, from GHS75.37 billion in 2024 to GHS63.10 billion. This reduction was mainly driven by a fall in the value of property, plant, and equipment. An asset revaluation led to this decrease. Total equity also fell by 25.76%, from GHS49.08 billion to GHS36.44 billion. This was largely due to a decline in the revaluation surplus. These changes increased VRA's debt-to-assets ratio, indicating greater reliance on liabilities.
The VRA's cost-recovery ratio remained above 100% at 114.51% in 2025. This shows that operating revenue was sufficient to cover operating costs. However, this ratio was down from 124.23% in 2024. This suggests increased cost pressures on the Authority. Sustaining profitability will require addressing these underlying operational challenges. Focus on efficient power generation and cost management is paramount.