ESLA records circa GHS 4bn decline in assets value; posts GHS 49.7m profit in Q1 2024
ESLA Plc, the Special Purpose Vehicle (SPV) established to address Ghana’s energy sector debts, saw its total assets plunge to GHS 5.19 billion in Q1 2024, a stark contrast to the GHS 9.11 billion recorded at the end of Q1 2023.
This significant decline is primarily due to a drastic reduction in non-current assets, which plummeted from GHS 4.77 billion in Q1 2023 to zero in Q1 2024.
Conversely, current assets saw a year-on-year increase, rising to GHS 5.19 billion from GHS 4.34 billion.
However, the growth in current assets was insufficient to offset the sharp decline in non-current assets.
On the liabilities side, ESLA Plc experienced a notable reduction, with total liabilities falling to GHS 4.79 billion by the end of Q1 2024, down from GHS 8.82 billion in the same period the previous year.
Both current and non-current liabilities decreased, with current liabilities dropping to GHS 269 million from GHS 519 million, and non-current liabilities decreasing to GHS 4.52 billion from GHS 8.30 billion.
Despite the challenges in asset management, ESLA Plc reported an increase in total comprehensive income, which rose from GHS 24.8 million at the end of Q1 2023 to GHS 49.7 million in Q1 2024. This improvement translates to earnings per share of GHS 49.7.
As an SPV, ESLA Plc plays a crucial role in managing Ghana’s energy sector debts by issuing long-term bonds backed by a component of the ESLA receivables.
The company’s financial performance and its ability to navigate the prevailing economic conditions are under close scrutiny by market watchers.
Efforts to prudently manage liabilities and enhance the asset base will be pivotal for ESLA Plc in restoring investor confidence and ensuring financial sustainability.
As the company continues to address the energy sector’s financial challenges, its strategic approach to asset management and debt reduction will be key to its long-term success.
