- Today, South Africa’s state owned power utility reported financial results for the year ended 31 March 2020.
- Their CEO, Mr Andre De Ruyter described the results as disappointing amid capacity constraints and rising debt.
The utility is struggling to manage its debt which has now ballooned to R483 billion. Highlights of the report include:
- Revenue of R200 billion, but sales 1.29% lower than 2019, with growth hampered by capacity shortages and adverse economic conditions.
- Cost savings of R16.3 billion achieved against a target of R6.2 billion, but largely absorbed by cost overruns on diesel to minimise loadshedding.
- Improvement in EBITDA to R37 billion arising from growth in revenue.
- Operating profit (EBIT) of R9.2 billion in a challenging environment.
- Unsustainable debt burden leads to net finance cost of R31.3 billion, resulting in a net loss R20.5 billion.
- Secured gross funding of R50.9 billion for 2020, exceeding our target.
- Generation energy availability factor (EAF) at 66.64%, together with unplanned maintenance at levels exceeding 20%, contributing to 46 days of loadshedding during the 2020 financial year.
Full report Eskom 2020 results presentation.
Author: Bryan Groenendaal
