SOEs recorded aggregate loss of GH¢2.61bn in 2020 – Report

State-owned enterprises (SOEs) recorded an aggregate loss of GH¢2.61 billion in 2020, even though that represents a 49.2 per cent improvement on the 2019 aggregate net loss of GH¢5.16 billion, a new report has stated.

According to the “2020 State Ownership Report”, SOEs’ combined revenue increased by 19.30 per cent from GH¢37,912.80 million in financial year 2019 to GH¢45, 230.48 million in FY2020.

All sectors, except communication and transportation, recorded improved revenue in financial year 2020 relative to financial year 2019.

Direct Cost incurred by SOEs collectively in financial 2020 was GH¢32,908.29 million, representing a 12.65 per cent increase from GH¢29,213.86 million FY2019.

The energy and agriculture sectors were the main contributors, accounting for over 80 percent of aggregate direct costs of SOEs in the financial year 2020.

Combined gross profit reported by SOEs in FY2020 amounted to GH¢10,481.20 million, showing a 56.91 per cent improvement from the previous year.

In terms of operating profit, the SOE portfolio recovered from a loss position of GH¢1, 201.05 million in financial year 2019 to an operating profit of GH¢1, 834.08 million in financial year 2020. Operating losses of GH¢1,091.05 million were also made in financial year 2018.

Ultimately, as at the end of financial year 2020, SOEs reported an aggregate net loss of GH¢2, 611.43 million, continuing the trend of unprofitability over the period under review.

Total assets of the SOE portfolio stood at GH¢171,632.03 million, while aggregate liabilities recorded was GH¢119,546.54 million in financial year 2020.

In comparison to financial year 2019, the asset base grew by 15.12 per cent with liabilities rising at a higher pace of 22.47 per cent.

Non-current assets accounted for approximately 65.81 per cent of total assets. For total liabilities, 57.37 percent was accounted for by short-term liabilities.

The report also stated that the aggregate equity of the SOE portfolio went up marginally by 1.18 per cent from GH¢51, 475.62 million in financial year 2019 to GH¢52, 085.38 million in FY2020.

In the 2020 fiscal year, central government received requests from eight SEs for financial support to cover payroll expenditure and help mitigate adverse effects of the COVID-19 pandemic on their operations, the report indicated.

Five SEs, comprising three SOEs and two Joint Venture Corporations (JVCs), were given direct government support amounting to GH¢72.6 million. Two other entities – both Other State Enterprises (OSEs) – were granted no-objection to borrowing on their own balance sheets to the tune of GH¢54.90 million, the report indicated.

The entities which received explicit and implicit support include Ghana Airport Company Limited (GACL), GH¢43.4million; PSC Tema Shipyard and Dry-Dock (PSC), GH¢1 million; Intercity STC Coaches Limited (ISTC), GH¢3.7 million; Metro Mass Transit Limited (MMT), GH¢14 million; and Ghana Post Company Limited (Ghana Post), GH¢10.5 million.

The rest are Ghana Communication Technology University (GCTU), GH¢24 million; and Ghana Institute of Management and Public Administration (GIMPA), GH¢30.90 million.

“As at the end of financial year 2020, one entity – Ghana Civil Aviation Authority (GCAA) – had not completed the process to receive government support,” the report noted. –Asaaseradio.com