Ghana Water Limited (GWL) returned to profitability in 2025, overturning a GH¢3.06 billion net loss recorded in 2024 to post a net profit of GH¢635.23 million.

According to the 2025 State Ownership Report, the turnaround was driven largely by a GH¢2.05 billion foreign exchange gain, compared with a GH¢1.72 billion exchange loss in the previous year.

The company also moved from an operating loss of GH¢2.95 billion in 2024 to an operating profit of GH¢748.31 million in 2025.

Its operating profit margin consequently improved significantly from negative 140.1 per cent to 34.6 per cent, while its net profit margin moved from negative 145.63 per cent to 15.07 per cent.

Return on assets also improved from negative 24.96 per cent in 2024 to 5.10 per cent in 2025.

Revenue increases to GH¢2.11bn

Ghana Water’s operating revenue increased by 2.76 per cent, from GH¢2.05 billion in 2024 to GH¢2.11 billion in 2025.

The report attributed the increase primarily to a 3.52 per cent rise in water sales to private customers.

The company’s main sources of operating revenue were water sales to private customers and government institutions.

Total revenue, including other income and the foreign exchange gain, more than doubled from GH¢2.10 billion in 2024 to GH¢4.21 billion in 2025.

Other income also increased by 6.93 per cent, from GH¢52.50 million to GH¢56.14 million, helping to offset some of the company’s operating costs.

Despite the improvement, Ghana Water’s cost-recovery ratio declined marginally from 61.51 per cent to 60.83 per cent.

The ratio showed that income from the company’s core operations remained insufficient to cover its full operating costs.

Interest-bearing liabilities fall by GH¢1.86bn

The company reduced its interest-bearing liabilities by 16.33 per cent, from GH¢11.41 billion in 2024 to GH¢9.55 billion in 2025.

This represented a reduction of approximately GH¢1.86 billion.

Total debt and liabilities also declined by 3.29 per cent, from GH¢14.41 billion to GH¢13.93 billion.

According to the report, Ghana Water’s liabilities included GH¢2.01 billion owed to the government, GH¢1.34 billion in commercial debt and external obligations reported at GH¢13.70 billion.

Trade and other payables stood at GH¢3.49 billion.

The company’s interest-cover ratio improved markedly from negative 25.51 times in 2024 to 6.62 times in 2025, reflecting its return to positive operating earnings.

Its debt-to-assets ratio also improved from 1.17 times to 1.12 times, although liabilities continued to exceed total assets.

Assets rise to GH¢12.45bn

Ghana Water’s total assets increased by 1.42 per cent, from GH¢12.27 billion in 2024 to GH¢12.45 billion in 2025.

Non-current assets, however, declined from GH¢10.99 billion to GH¢10.44 billion.

The profit recorded during the year helped narrow the company’s negative equity position from GH¢2.13 billion in 2024 to GH¢1.48 billion in 2025.

Although this represented an improvement of about GH¢647.79 million, Ghana Water remained in a deficit-equity position because its liabilities continued to exceed its assets.

The company’s equity multiplier worsened from negative 5.76 times to negative 8.40 times, highlighting its continued dependence on debt financing and the impact of accumulated losses.

Return on equity stood at negative 42.84 per cent in 2025.

Liquidity improves marginally

Ghana Water’s current ratio improved from 0.33 times in 2024 to 0.40 times in 2025.

The improvement showed some strengthening in the company’s liquidity position, but the ratio remained below the benchmark of one.

The report said this meant Ghana Water’s current assets were still insufficient to cover its current liabilities.

Its operating cash flow-to-revenue ratio also fell from 0.16 times in 2024 to zero in 2025, indicating persistent pressure on the company’s capacity to generate cash from its operations.

The report, therefore, showed that although the company returned to profitability, much of the turnaround arose from foreign exchange gains rather than stronger cash generation from its core water operations.

More than 1,000 households connected

Ghana Water partnered with international water utilities and development organisations to extend potable water to more than 1,000 households in low-income urban communities.

Its partners included VEI of the Netherlands, the World Bank and the United Nations Children’s Fund.

The intervention formed part of the company’s efforts to improve access to safe water in underserved communities.

Ghana Water also implemented subsidised water programmes in the Western, Bono and Ahafo, Upper East and Ashanti regions.

These included the Water for Life programme and subsidised services implemented with the Red Cross in Asante Mampong.

Climate-resilient water projects

The company pursued a Climate-Resilient Water System Utilisation Project to make use of underutilised water systems in climate-stressed parts of the Upper West and Upper East regions.

It also implemented a water-access and efficiency programme for low-income urban communities.

The programme involved using climate-resilient pipe materials and construction methods for new household connections.

Established in 1965 as the Ghana Water and Sewerage Corporation, Ghana Water Limited is responsible for producing, transmitting and distributing potable water to urban communities across Ghana.