Guam Power Authority's operating revenues up 45% due to Ukraine war
Updated: Aug 22
By Pacific Island Times News Staff
Guam Power Authority's total operating revenues jumped by 45.3 percent last year, the Office of Public Accountability said, attributing the surge to "increased global fuel prices stemming from the war in Ukraine."
Russia's invasion of Ukraine in February 2022 inflated oil prices to well over $110 per barrel, impacting every corner of the world.
According to the OPA's April 17 audit report, GPA operating revenues rose to $149.2 million, from $329.3 million in fiscal year 2021 to $478.6 million in 2022.
"In comparing the electricity sales between FY2021 and FY2022, the accumulated sales for FY2021 was $324.2 million and $473.6 million for FY2022, an increase of $149.3 million," OPA said.
The audit also found that GPA's total operating and maintenance expenses increased significantly by 41.5 percent or $129.1 million, going from $311 million in FY2021 to $440.1 million in FY2022.
"The increase was mainly driven by raised production expenses, particularly in production fuel," OPA said.
For FY2022, production fuel expense was $315.8 million when compared to FY2021’s expense of $180.8 million, an increase of $135 million or 74.6 percent.
OPA said all other operating and maintenance expenses decreased by $6.7 million, largely due to pension and other post-employment benefits valuation.
"Total employee count decreased from 426 in FY2021 to 412 in FY2022, mainly due to employee retirements," the audit said.
OPA said GPA closed FY2022 with an increase in net income of $5.1 million, marking an increase from the prior year’s net position of $8.2 million to $13.4 million in FY 2022. Ernst and Young LLP, an independent auditing agency, rendered an unmodified “clean” opinion on GPA’s financial statements and identified no material weaknesses or significant deficiencies.
However, GPA received a qualified opinion on compliance for major federal programs, causing it to no longer qualify as a low-risk auditee.