The Volta River Authority (VRA) recorded a profit of ¢110.893 million in 2022, about 1.7% decline over the previous year, the 2022 Auditor General Report has revealed.
In 2021, the Authority registered a profit of ¢112.758 million.
Total income increased by 34% to ¢5.628 billion in 2022, from ¢4.199 million in 2021. The increase in total income was due to a 38.7% increase in revenue from power sales.
On the other hand, total expenditure increased by 35.0%, from ¢4.086 billion in 2021 to ¢5.517 billion in 2022. This was mainly due to increases in cost of sales and depreciation.
In terms of the balance sheet, Non-Current Assets increased from ¢18.380 billion in 2021 to ¢26.008 billion in 2022, representing an increase of 41.5%. The increment was due to revaluation gains and acquisition of property plant and equipment during the year.
Current Assets also increased by 36.1% from ¢8.631 billion in 2021 to ¢11.751 billion in 2022 due to an increase in trade and other receivables.
Similarly, Current Liabilities recorded an increase of 26.2% from ¢6.861 billion in 2021 to ¢8.659 billion in 2022. This was due to an increase in trade payables from ¢6.404 billion in 2021 to ¢8.363 billion in 2022.
For liquidity, the current ratio increased to 1.4:1 in 2021 (2020: 1.3:1).
However, the report said the Authority would struggle to meet its short-term financial obligations.
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