Eskom Says Full Year Loss on the Cards Despite Making Interim Net Profit
- National power supplier Eskom has reported massive half-year profits for the six months ended September
- CEO Andre De Ruyter presented Eskom's financials on Wednesday, noting the profit margins were an improvement
- Despite R9.2 billion in net profits, the utility expects to incur a loss of R9.1 billion at the end of the financial year
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JOHANNESBURG - Embattled power utility Eskom has reported higher than expected interim half-year profits for the period ended September, ensuring a 4 000 per cent improvement.
It means the national supplier saw R9.2 billion in net profits but still expects to incur a loss of R9.1 billion when the financial year ends in March of next year. CEO Andre De Ruyter made the announcement on Wednesday, noting the profit is a bigger improvement compared to the same time last year, eNCA reported.
Source: Twitter
"Important to emphasise is Eskom's net profit after tax of R9.2-billion. This is a significant improvement [with where we found ourselves] the previous year," De Ruyter said.
According to a News24 report, the net profit reported by de Ruyter shows a 4 000 per cent jump, as the profit recorded in the comparative period stood only at R216 million.
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That was not the only positive for Eskom, as headline earnings shot up an astronomical 58 per cent to reach R44.8 billion. Reports suggest this is attributed to an eight per cent growth in the volume of electricity sales as well as a 15 per cent tariff increase in the period under review.
De Ruyter reported that gross debt also decreased by a significant margin – 15 per cent – to R392 billion. The outlook was positive as it was down from R463 billion in the six months to September last year.
Despite the figures, the utility's CFO Calib Cassim lamented his organisation's position. Namely, he stated that some metrics were evidently on the upward trajectory as the utility's assets now exceed its liabilities.
"It's not the ideal position for Eskom to ensure sustainability, but it’s a great start in the right direction nonetheless," Cassim said.
Eskom's projected year-end loss of R9.1 billion follows the premise that the first half of the financial year is generally better than the next half. The utility has also often incurred lower primary energy and maintenance expenditure over this period.
EFF angry over electricity disconnections across Joburg
Elsewhere, Briefly News reported that the Economic Freedom Fighters (EFF) are crying foul over the new Johannesburg Executive Mayor Mpho Phalatse's move to effect what the party is calling unfair electricity disconnections across the city.
The red army expressed its strong condemnation as the newly elected mayor took to her first 10 days in office. The EFF, according to a SABC News report, accused Phalatse of demonstrating her willingness to oppress poor residents in Johannesburg "for the satisfaction of her white masters".
“Through her recent actions, Phalatse has dismally failed and declared war on the poor and marginalised in the city. She is discriminating when she [instead] needs to provide the most basic service delivery needs to the poor,” said the EFF in a statement.
Source: Briefly News
