Embattled Eskom Reduces Gross Debt Despite a Loss of R18.9 Billion

• Following the release of Eskom's annual financial record on 31 August, it was revealed that Eskom secured revenue was valued at over R204 billion during the 2020/21 financial year
• Eskom shrunk its gross debt by a total of 16.9%, equalling a value of R81.9 billion and bringing the remaining debt owed to R401.8 billion despite the drop in sales
• State-owned enterprise Eskom has confirmed that Covid-19 has had a negative effect on the financial performance for March 2021 as sales reflect a decrease of 6.7%

Embattled power utility Eskom recently stated that the Covid-19 pandemic has impacted the financial performance for March 2021 in a negative way. Sales were volumes down by 6.7%. It lessened the volumes' gross debt by R18.9 billion.

This was a 16.9% reduction and created a massive debt of R401.8 billion. The power utility's debt remained non-viable and attracted a nett finance that cost R31.5 billion. It turned the operating profit of R5.8 billion into an after-tax loss of R18.9 billion.

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Load shedding: Ramaphosa promises there's light at the end of the tunnel for Eskom

For the 2020/21 financial year, Eskom gained revenue of more than R204 billion. According to eNCA, Eskom disclosed its annual results on Tuesday, 31 August.

BusinessTech reported that Eskom has still been negatively impacted by loadshedding this year. Group CEO Andre de Ruyter explained that Eskom was not reprieved by the biggest impacts of the pandemic.

Eskom considers R106 billion wind and solar investment plan

Previously, Briefly News reported that South Africa's state-owned power utility has a plan to invest in wind and solar power generation in the coming years.

Eskom plans to implement a plan that will invest R61.75 billion in wind power and R44.25 billion in solar energy by the end of 2030, according to BusinessTech.

Eskom's plan, which can be implemented by the power utility or in collaboration with other companies, is the most thorough illustration yet of the utility's desire to transition away from coal by utilising the country's enormous wind and solar resources.

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Go green or go home: Eskom looks into reducing carbon emissions

Briefly News previously reported that on Tuesday, 17 August, Eskom's CEO André de Ruyter covered the path to a green energy future as a central point of a University of Pretoria online lecture. De Ruyter revealed that the country's economy is 25% more carbon-intensive than China, speaking per capita.

It is also double the global average. South Africa also discharges almost half of the total carbon that has been emitted by Africa. Eskom counts for around 44% of Mzansi's total carbon emissions. De Ruyter stated that due to this, it is near impossible to ignore the carbon footprint being left.

According to BusinessLIVE, De Ruyter painted a picture of Eskom's green industrialisation future. The Group CEO explained that by transitioning to renewable energy, Eskom could push the country's green industrialisation forward.

Source: Briefly News