The Volta River Authority (VRA) returned to profitability in 2025, reversing a net loss of GH¢105.75 million recorded in 2024 to post a net profit of GH¢88.04 million.

According to the 2025 State Ownership Report by the State Interests and Governance Authority (SIGA), the turnaround was driven largely by a significant foreign exchange gain during the year.

VRA recorded a net foreign exchange gain of GH¢236.60 million in 2025, compared with an exchange loss of GH¢694.67 million in 2024.

The improved bottom-line performance pushed VRA’s net profit margin from negative 0.14% in 2024 to 0.93% in 2025.

Return on assets also improved from negative 0.14% to 0.14%, while return on equity moved from negative 0.22% to 0.24%.

However, the return to profitability came despite weaker electricity generation, lower operating revenue and a sharp decline in core operating profit.

Operating cash flow jumps to GH¢1.58bn

VRA recorded a substantial improvement in cash generated from its operations during the year.

Net cash flow from operating activities surged from GH¢31 million in 2024 to GH¢1.58 billion in 2025.

The improvement significantly strengthened the Authority’s ability to meet its short-term obligations, with short-term debt coverage rising from 0.13 times in 2024 to 6.45 times.

Cash and cash equivalents, however, declined from GH¢1.09 billion to GH¢954 million.

Net cash used for investing activities fell from GH¢1.47 billion to GH¢1.34 billion, while financing activities recorded a net outflow of GH¢369 million, compared with an inflow of GH¢1.63 billion in 2024.

Revenue declines as power generation falls

VRA’s total revenue declined marginally from GH¢9.54 billion in 2024 to GH¢9.48 billion in 2025.

Operating revenue fell by 3.70%, from GH¢9.29 billion to GH¢8.95 billion.

SIGA attributed the decline mainly to lower electricity generation and supply, which fell from 13,922 gigawatt-hours in 2024 to 12,926 gigawatt-hours in 2025.

Despite the decline, VRA’s cost-recovery ratio remained above 100%, at 114.51%, indicating that operating revenue was sufficient to cover operating costs.

The ratio, however, was down from 124.23% in 2024, pointing to increased cost pressures.

Core operating profit plunges

While VRA returned to a net profit, its underlying operating performance weakened significantly.

Operating profit plunged by about 96.3%, from GH¢814 million in 2024 to just GH¢30 million in 2025.

The operating profit margin consequently declined from 8.54% to 0.33%.

Interest coverage also deteriorated sharply, from 3.19 times in 2024 to 0.16 times, reflecting the significant decline in operating earnings.

The figures suggest that the foreign exchange gain was a major factor behind VRA’s return to profitability, while improvements in power generation, electricity sales and cost management will remain important to sustaining the recovery.

Interest-bearing debt falls by GH¢1.02bn

VRA’s interest-bearing liabilities declined by 33.64%, from GH¢3.04 billion in 2024 to GH¢2.02 billion in 2025.

This represents a reduction of approximately GH¢1.02 billion.

Total debt and liabilities, however, increased slightly from GH¢26.29 billion to GH¢26.66 billion.

Trade and other payables rose by 5.92%, from GH¢22.60 billion to GH¢23.93 billion, while trade and other receivables increased from GH¢23.71 billion to GH¢24.17 billion.

VRA’s current ratio stood at 1.07 times in 2025, compared with 1.11 times in 2024. Although the ratio declined marginally, current assets remained sufficient to cover short-term obligations.

Assets fall after revaluation

VRA’s total assets declined by 16.28%, from GH¢75.37 billion in 2024 to GH¢63.10 billion.

According to the report, the reduction was driven mainly by a fall in the value of property, plant and equipment following asset revaluation.

Property, plant and equipment declined from GH¢48.93 billion to GH¢36.25 billion.

Total equity also fell by 25.76%, from GH¢49.08 billion to GH¢36.44 billion, largely due to a decline in the revaluation surplus from GH¢45.87 billion to GH¢32.75 billion.

Consequently, VRA’s debt-to-assets ratio increased from 0.35 times to 0.42 times, indicating greater reliance on liabilities to finance its asset base.

Its equity multiplier also rose from 1.54 times to 1.73 times, reflecting increased financial leverage.

VRA awards scholarships to 60 students

Beyond its core power generation mandate, VRA awarded scholarships to 60 academically talented but financially disadvantaged tertiary students from communities affected by its operations.

The latest awards brought the total number of beneficiaries under the Authority’s Community Development Programme Scholarship Scheme to 505 since 2011.

VRA also organised district-level sensitisation workshops on its Emergency Preparedness Plan and Environmental Management Plan.

The workshops engaged 1,124 participants from three regional coordinating councils and 20 municipal and district assemblies located upstream and downstream of the Volta Lake.

Under its 2025 Employee Volunteer Programme, the Authority undertook activities at Chemu Senior High School in Tema and Anum Presbyterian Senior High School in Anum.

It also held an Audit Week aimed at promoting accountability, governance and risk management across its operations.

Environmental and cybersecurity initiatives

VRA implemented several environmental interventions during the year, including the Volta Gorge and Buffer Zone reforestation programmes.

It also continued its corporate carbon-footprint management programme and environmental compliance monitoring at its plants and operational sites.

Other initiatives included the Payment for Environmental Services scheme to support the sustainable management of the Volta Gorge ecosystem and the Climate-Smart Stove Project.

The Authority also marked its first Cybersecurity Awareness Month across its operational locations.

The programme featured webinars, training sessions, quizzes and drills designed to strengthen the ability of staff and contractors to identify and respond to cyber threats.

Established on April 26, 1961, VRA is responsible primarily for generating electricity from hydro, thermal and renewable energy sources for customers in Ghana and other parts of West Africa.