- Eskom has delivered one of its strongest interim performances in years, reporting a 37% surge in profit after tax to R24.3 billion for the six months to 30 September 2025.
- The state-owned utility’s latest unaudited results point to a sustained turnaround in both financial health and system reliability, progress that has kept the country free of loadshedding for more than six months.
Revenue rose 4% to R191.3 billion, driven largely by April’s 12.74% tariff increase, while EBITDA climbed 11% to R68.5 billion. Profit before tax increased 41% to R32.5 billion. However debt and debt securities remain high at R362,7 billion.
Eskom intends to reinvest its profit in a R320 billion, five-year capital programme aimed at stabilising plant performance, expanding transmission capacity to integrate growing renewable generation, and enhancing grid resilience.
The turnaround is drawing international attention. S&P Global Ratings recently upgraded South Africa’s sovereign credit rating for the first time in two decades, noting Eskom’s improving performance as a contributing factor. S&P also upgraded Eskom’s own long-term foreign and local currency ratings from B to B+ with a stable outlook.
Board chair Mteto Nyati, whose term ends this week, said the results reflect “an organisation pulled back from crisis” through leadership and operational discipline. Group CEO Dan Marokane said the focus now is on sustaining profitability to reduce borrowing requirements and strengthen Eskom’s investment appeal.
Stronger fleet performance drives down diesel use
Operationally, Eskom’s generation fleet continues to stabilise. The Energy Availability Factor (EAF) has climbed to 68.48% month-to-date, up from 62.24% a year earlier, with the year-to-date figure at 63.65%. Unplanned outages have dropped by 763 MW, and six units, amounting to 2 341 MW, are on cold reserve due to excess capacity.
Reduced breakdowns have translated into sharply lower diesel usage. Eskom spent just R105.5 million on diesel last week, mainly to replenish emergency reserves. Year-to-date OCGT utilisation remains below budget, with diesel consumption declining monthly since May.
The improved stability has allowed South Africa to reach 196 consecutive days without loadshedding, apart from 26 hours in April and May.
Kusile Unit 6 entered commercial operation during the period, while Medupi Unit 4 returned to service after long-term repairs.
Municipal debt still a critical risk
Despite progress on core operations, municipal arrear debt remains an entrenched structural threat. Outstanding municipal debt rose to R105 billion by end-September, even though 71 municipalities joined the government’s debt-relief programme. More than 85% continue to miss payment of current accounts.
In response, Cabinet has endorsed the use of Distribution Agency Agreements, under which Eskom temporarily takes over electricity distribution in defaulting municipalities to improve collections, manage tariffs, and reduce losses. National Treasury is working on longer-term reforms to address the sector’s financial instability.
Battling non-technical losses and ending load reduction
Electricity theft and non-technical losses continue to cost Eskom heavily, amounting to an estimated 7.9 TWh and R17.5 billion in lost revenue during the period. The utility is rolling out targeted interventions to reduce illegal connections and curb infrastructure damage.
At the same time, Eskom is implementing a multi-year programme to eliminate load reduction, a measure used in high-risk areas to protect overloaded networks. The initiative, supported by smart meters, expanded Free Basic Electricity access, and distributed energy solutions such as microgrids is expected to benefit 1.69 million customers by 2027.
Seasonal challenges ahead, but outlook remains stable
Historically, Eskom’s financial performance softens in the second half of the year due to lower tariffs, weaker demand, and increased maintenance. The utility expects its FY2026 profit after tax to be broadly in line with the R16 billion reported in FY2025, supported by an improved cash position.
Eskom’s Summer Outlook, released in September, forecasts no loadshedding for the rest of the season, conditional on continued operational stability.
CEO Marokane said sustained financial and operational discipline is key to securing South Africa’s energy transition. “This is about ensuring security of supply while building the investment case for a resilient, future-ready Eskom,” he said.
Link to Eskom’s condensed group interim financial statements for the six months ended 30 September 2025 HERE
Author: Bryan Groenendaal
