The Ghana Grid Company Limited (GRIDCo) recorded a sharp decline in its core financial performance in 2025, with operating profit falling by 89.45 per cent despite an increase in net profit.

According to the 2025 State Ownership Report by the State Interests and Governance Authority (SIGA), GRIDCo’s operating profit dropped from GH¢955.19 million in 2024 to GH¢100.82 million in 2025.

The decline caused the company’s operating profit margin to fall from 26.65 per cent to 3.65 per cent over the period.

“Between FY2024 and FY2025, GRIDCo’s financial performance was mixed, with a sharp decline in core operating profitability more than offset by an extraordinary rise in finance income,” the report stated.

GRIDCo’s total revenue remained broadly unchanged at GH¢3.60 billion, while operating revenue increased marginally by 1.06 per cent, from GH¢2.66 billion in 2024 to GH¢2.69 billion in 2025.

However, the company generated significantly less operating profit from the revenue recorded during the year.

Its cost-recovery ratio also declined slightly from 101.92 per cent to 101.24 per cent, indicating that operating revenue continued to exceed operating costs, but by a narrower margin.

Despite the deterioration in its core operations, GRIDCo’s net profit increased by 89.02 per cent, from GH¢309.23 million in 2024 to GH¢584.46 million in 2025.

SIGA attributed the profit growth mainly to a sharp increase in finance income rather than an improvement in the company’s principal electricity transmission operations.

Finance income rose from GH¢16.36 million in 2024 to GH¢838.51 million in 2025.

“Net profit nonetheless increased by 89.02 per cent, from GH¢309.23 million to GH¢584.46 million, primarily driven by an extraordinary rise in finance income and other income,” the report said.

The additional income lifted GRIDCo’s net profit margin from 8.59 per cent to 17.42 per cent. Return on equity also increased from 2.07 per cent to 5.31 per cent, while return on assets rose from 0.71 per cent to 3.77 per cent.

Beyond the decline in operating profit, GRIDCo’s balance sheet contracted substantially during the year.

Total assets fell by about 21 per cent, from GH¢27.70 billion in 2024 to GH¢21.97 billion in 2025.

Total equity also declined by 26.36 per cent, from GH¢14.96 billion to GH¢11.01 billion. The reduction was attributed mainly to a revaluation loss on property, plant and equipment.

“For FY2025, GRIDCo’s capital structure weakened despite a significant reduction in borrowings,” SIGA stated.

The fall in equity increased the company’s debt-to-assets ratio from 0.46 to 0.49, while its equity multiplier rose from 1.85 to 2.00, signalling slightly higher financial leverage.

GRIDCo nevertheless reduced its interest-bearing liabilities by 34.97 per cent, from GH¢2.86 billion in 2024 to GH¢1.86 billion in 2025.

Total debt and liabilities also declined from GH¢12.74 billion to GH¢10.96 billion.

However, the company’s interest-coverage ratio fell from 1.23 times to 0.92 times, meaning its operating profit was no longer sufficient to cover its finance costs fully.

“The interest coverage ratio moved from 1.23 to 0.92 times, meaning operating profit (EBIT) no longer fully covers finance costs,” the report warned.

GRIDCo also experienced a substantial decline in cash generated from its operations. Net operating cash flow fell by about 58 per cent, from GH¢1.45 billion in 2024 to GH¢616.05 million in 2025.

SIGA said the decline in operating cash-flow indicators demonstrated a “substantial weakening in operating cash generation” during the year.

Cash and cash equivalents, however, increased by 3.71 per cent, from GH¢965.74 million to GH¢1.00 billion, while the company’s current ratio showed a modest improvement.

GRIDCo is wholly owned by the government and is responsible for operating Ghana’s national electricity transmission system, including building and maintaining transmission lines and substations.