The Ghana Grid Company Limited (GRIDCo) suffered a major setback in its core financial performance in 2025, with operating profit collapsing by 89.45% despite the company reporting a substantial increase in net profit.
The latest figures from the State Interests and Governance Authority’s (SIGA) 2025 State Ownership Report show that GRIDCo’s operating profit fell from GH¢955.19 million in 2024 to GH¢100.82 million in 2025.
The sharp decline pushed the company’s operating profit margin from 26.65% to just 3.65%, raising concerns about the underlying performance of its core electricity transmission business.
SIGA said the increase in GRIDCo’s reported net profit did not reflect an improvement in its principal operations.
“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.
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GRIDCo’s total revenue remained broadly stable at GH¢3.60 billion, while operating revenue rose by only 1.06%, from GH¢2.66 billion in 2024 to GH¢2.69 billion.
Yet despite the marginal growth in operating revenue, the company’s ability to generate profit from its core activities deteriorated sharply.
GRIDCo’s net profit, in contrast, increased from GH¢309.23 million in 2024 to GH¢584.46 million in 2025.
The increase was largely attributable to finance income, which surged more than 50-fold from GH¢16.36 million to GH¢838.51 million.
SIGA therefore attributed the improvement in net profit primarily to finance and other income rather than stronger performance in electricity transmission.
The company’s net profit margin consequently doubled from 8.59% to 17.42%.
The deterioration extended beyond operating profitability, with GRIDCo’s total assets shrinking by about 21% during the year, from GH¢27.70 billion to GH¢21.97 billion.
Total equity also dropped by 26.36%, from GH¢14.96 billion to GH¢11.01 billion, largely due to a revaluation loss on property, plant and equipment.
SIGA said GRIDCo’s capital structure weakened despite a reduction in its borrowings.
The company’s interest-bearing liabilities fell by 34.97%, from GH¢2.86 billion to GH¢1.86 billion, while total debt and liabilities declined from GH¢12.74 billion to GH¢10.96 billion.
However, the reduction in debt did not prevent pressure on GRIDCo’s ability to meet finance costs.
Its interest-coverage ratio fell from 1.23 times to 0.92 times, indicating that operating profit was no longer sufficient to cover 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,” SIGA stated.
GRIDCo’s cash generation from operations also weakened considerably. Net operating cash flow fell by approximately 58%, from GH¢1.45 billion in 2024 to GH¢616.05 million in 2025.
SIGA said the decline demonstrated a “substantial weakening in operating cash generation”.
Cash and cash equivalents nevertheless increased slightly from GH¢965.74 million to GH¢1.00 billion.
GRIDCo, which is wholly owned by the government, is responsible for operating Ghana’s national electricity transmission system, including the development and maintenance of transmission lines and substations.
