The Electricity Company of Ghana has returned to profitability, recording a net profit of ¢181.40 million in 2020.
This is an improvement on the loss of ¢1.465 billion recorded in 2019.
According to a report by the State Interest and Governance Authority (SIGA), net profit margin was 1.31%, which represents an improvement from -17.24% recorded in 2019.
Revenue also increased by 62.30%, from ¢8.50 billion in 2019 to ¢13.796 billion in 2020.
Revenue from operations, which saw a decline of 5.07%, accounted for 50.11% of the company’s total revenue from ¢7.28 billion in 2019 to ¢6.91 billion in 2020. The other segment of the revenue consisted mainly of government grant of ¢6.841 billion (49.59%) which is in respect of payments made by government to Independent Power Producers (IPPs) on behalf of ECG.
In terms of operational performance, ECG exceeded its billing target of 9,568GWh by 32.80% for 2020 with an impressive result of 12,706GWh.
However, it did not meet the 23% regulatory benchmark for system losses in 2020. Actual losses of 26.20% were recorded.
Again, the revenue collection to sales ratio was estimated at 79.86% in 2020 (2019: 94.50%), falling short of the 98% target.
ECG, however, exceeded it’s targeted of debt recovery of 10% with a result of 14%.
In terms of liquidity, ECG’s current ratios were 0.49 and 0.62 respectively for 2019 and 2020. This indicates that the company faced significant hurdles in meeting its short-term obligations.
Its total liabilities stood at ¢22.26 billion, whilst total assets were estimated at ¢30.68 billion in 2022.
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