Eskom made a surprise 1.3 billion rand profit from April to end September,double the amount made in the same period last year, due to higher tariffs.
The power utility’s financial performance is typically stronger in the first half (April-Sept) of the year, as it sells more electricity during winter season and does less maintenance.
Nersa granted Eskom a more than 13% average tariff increase from April.
However Eskom Chairman Jabu Mabuza told a news conference that Eskom is still expected to make a loss of roughly 20 billion rand for the full year that ends in March 2020,
Eskom produces more than 90% of South Africa’s power but doesn’t generate enough cash to meet its debt-service costs and is reliant on government bailouts to stay solvent.
Mabuza said Eskom secured 64% of the funding it needed for next year, but would still rely on government support to maintain a positive cash balance by next March.
“It is against this background that while a net profit of R1.3 billion was realised for the period ending 30 September, a R20 billion loss is projected by year-end. Our overall interim performance remains unfavourable as we continue to face operational and financial challenges,” he said.
#EskomMediaStatement : Eskom results indicate some positive financial performance for the first half of the year, although financial and operational challenges remain https://t.co/6ZKIT0DhIe #EskomInterimResults2019 #EskomResults2019— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2019