State-owned enterprises (SOEs) recorded an aggregate loss of GHC2.61 billion in 2020, even though that represents a 49.2% improvement on the 2019 aggregate net loss of GHC5.16 billion, a new report has stated.
According to the “2020 State Ownership Report”, SOEs’ combined revenue increased by 19.30% from GH¢37,912.80 million in FY2019 to GHC45,230.48 million in FY2020.
All sectors, except communication and transportation, recorded improved revenue in FY2020 relative to FY2019.
Direct Cost incurred by SOEs collectively in FY2020 was GHC32,908.29 million, representing a 12.65% increase from GHC29,213.86 million FY2019.
The energy and agriculture sectors were the main contributors, accounting for over 80 percent of aggregate direct costs of SOEs in FY2020.
Profitability
Combined gross profit reported by SOEs in FY2020 amounted to GHC10,481.20 million, showing a 56.91% improvement from the previous year.
In terms of operating profit, the SOE portfolio recovered from a loss position of GHC1,201.05 million in FY2019 to an operating profit of GHC1,834.08 million in FY2020. Operating losses of GHC1,091.05 million were also made in FY2018.
Ultimately, as at the end of FY2020, SOEs reported an aggregate net loss of GHC2,611.43 million, continuing the trend of unprofitability over the period under review.
Financial position
Total assets of the SOE portfolio stood at GHC171,632.03 million, whilst aggregate liabilities recorded was GHC119,546.54 million in FY2020. In comparison to FY2019, the asset base grew by 15.12% with liabilities rising at a higher pace of 22.47%.
Non-current assets accounted for approximately 65.81% 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% from GHC51,475.62 million in FY2019 to GHC52,085.38 million in FY2020.
Bailout
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 GHC72.6 million. Two other Entities – both Other State Enterprises (OSEs) – were granted no-objection to borrowing on their own balance sheets to the tune of GHC54.90 million, the report indicated.
The entities which received explicit and implicit support include Ghana Airport Company Limited (GACL), GHC43.4million; PSC Tema Shipyard & Dry-Dock (PSC), GHC1 million; Intercity STC Coaches Limited (ISTC), GHC3.7 million; Metro Mass Transit Limited (MMT), GHC14 million; and Ghana Post Company Limited (Ghana Post), GHC10.5 million.
The rest are Ghana Communication Technology University (GCTU), GHC24 million; and Ghana Institute of Management and Public Administration (GIMPA), GHC30.90 million.
“As at the end of FY2020, one entity – Ghana Civil Aviation Authority (GCAA) – had not completed the process to receive government support,” the report noted.
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