By Suren Naidoo.
Despite double-digit growth in revenue, state-owned ports and rail monopoly operator Transnet is still making losses, reporting a R7.3 billion loss for its financial year to the end of March 2024 on Monday.
However, Transnet CFO Nosipho Maphumulo cautioned that this loss is not comparable to prior financial year, when the group posted a loss of R5.7 billion (FY 2023). The group had to make a post-year-end provision of over R4.7 billion for the Natref case involving Sasol and Total, following a court ruling around overcharging in Transnet’s pipelines business in June.
Transnet, which secured a R5 billion loan from the Brics-backed New Development Bank just last week, said revenue jumped around 12%, to R76.7 billion for FY 2024.
Transnet said that this investment would help support the modernisation and improvement of South Africa’s freight rail sector.
Maphumulo noted that the group achieved the strong growth in revenue on the back off increased port and rail volumes, as the turnaround of the company starts delivering some positives. This growth in rail and port volumes however came in the low single digits, as Transnet missed its Recovery Plan targets for the year.
- Revenue increased by 11.6% to R76.7 billion
- EBITDA or Earnings before interest, taxation, depreciation and amortisation declined by 3.6% to R21.9 billion
- Loss for the year is R7.3 billion, which includes a provision of R4.8 billion due to litigious matters (Natref case)
- Cash generated from operations after working capital changes increased by 13.6% to R28.8 billion
- Capital investment increased by 20.1% to R16.7 billion for the year
- Rolling cash interest cover (including working capital changes) is 1.9 times; and
- Gearing at 46.2% is within debt covenant requirements of 50%.