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Eskom made R4.6 billion in profit last year

We don’t want to say it too loudly, but it might be that South Africa’s electricity woes are a thing of the past.

Eskom has released its financial results for the year ending 31 March, which reveal that the parastatal has made R4.6 billion in profit over the last year.

This is, according to Group Chief Executive Brian Molefe, largely thanks due to the stability at both Board and Executive Management levels.

“With new leadership and intensified staff engagements, we have stabilised the organisation. Despite the challenges we face, we continue making progress in the technical and operational areas of the business,” Molefe said in a statement.

“Through our robust improvement plan, we have risen to the challenge of completing necessary maintenance of our ageing power stations, while delivering on our new build projects, which will add capacity to the grid in the future”

Eskom also pointed out that revenue increased by 10% to R163.4 billion.

Other highlights from the financial statement include:

  • EBITDA surged 37.4% to R32 billion
  • Net profit: R4.6 billion
  • 5 billion cost-saving achieved versus targets of R13.4 billion
  • Liquid assets of R38.7 billion, an increase of 123%
  • 57% of funding for 2016/17 have been secured

“Financial performance improved against the previous year, and all financial ratios showed improvement due to improved operating results, as well as the conversion to equity of the subordinated Government loan and equity injection of R23 billion. Operating results also improved due to stringent cost containment measures,” Molefe said.

Elated with Eskom’s financial position, Chairperson Dr Baldwin Ngubane is confident that Eskom will be able to keep this momentum up through its Corporate Plan.

“Our Corporate Plan will drive ongoing improvement in our operational and financial sustainability, while stimulating economic growth and driving socio-economic development. We recognise the need for fundamental operational change if we are to provide an affordable, sustainable electricity supply to all South Africans,” he said.

[Image – CC by 2.0/Peter Nijenhuis]

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