By Tiso Black Star Group DIGITAL
Eskom reported a 10.6% increase in revenue to R163bn and a 57% profit surge to R4bn from last for the financial year ended in March 2016.
Earnings before interest‚ taxes‚ depreciation and amortisation increased by 37.4% to R32bn. Eskom has also secured 57% of the funding that it required for the 2016/17 financial year.
Eskom CEO‚ Brian Molefe said that these results can be attributed to the board and executive management stability at the state owned company.
“With new leadership … we continue to making progress in the technical and operational areas of the business‚” he said‚
The energy generator improved its liquidity position which it attributes to a conversion of a government loan of R60bn to equity and an injection of R23bn from shareholders which Mr Molefe further attributes to the company’s improved financial performance. Mr Molefe also said that over the past 11 months‚ the country has not experienced any form of load shedding.
From August 2015 the electricity supply has been outstripping demand. The overall electricity sales volumes declined by 0.8% although a 12% growth in international sales volumes was achieved which it attributes to having excess capacity.
Commercial and agricultural electricity sales to increased by 5.2% and 6.1% respectively while sales to the rail traction and industrial sectors declining by 7.9% and 6.2% because of an increase in the demand from these sectors.
“The decline demand for traction is due to Transnet’s coal and iron or lines which are our main customers for electricity‚” said Mr Molefe. These declines he says were because of low commodity prices and the decrease in exports.
Tiso Black Star Group Digital/BDlive
Eskom sees profits surge by 57% to R4bn
Eskom reported a 10.6% increase in revenue to R163bn and a 57% profit surge to R4bn from last for the financial year ended in March 2016.
Earnings before interest‚ taxes‚ depreciation and amortisation increased by 37.4% to R32bn. Eskom has also secured 57% of the funding that it required for the 2016/17 financial year.
Eskom CEO‚ Brian Molefe said that these results can be attributed to the board and executive management stability at the state owned company.
“With new leadership … we continue to making progress in the technical and operational areas of the business‚” he said‚
The energy generator improved its liquidity position which it attributes to a conversion of a government loan of R60bn to equity and an injection of R23bn from shareholders which Mr Molefe further attributes to the company’s improved financial performance. Mr Molefe also said that over the past 11 months‚ the country has not experienced any form of load shedding.
From August 2015 the electricity supply has been outstripping demand. The overall electricity sales volumes declined by 0.8% although a 12% growth in international sales volumes was achieved which it attributes to having excess capacity.
Commercial and agricultural electricity sales to increased by 5.2% and 6.1% respectively while sales to the rail traction and industrial sectors declining by 7.9% and 6.2% because of an increase in the demand from these sectors.
“The decline demand for traction is due to Transnet’s coal and iron or lines which are our main customers for electricity‚” said Mr Molefe. These declines he says were because of low commodity prices and the decrease in exports.
Tiso Black Star Group Digital/BDlive
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