Transnet posts R5.2bn profit

Johannesburg - Transnet showed positive results for the 2013/2014 financial year, the company said on Monday.

The state-owned entity recorded a profit of R5.2bn.

Revenue grew to R56.6bn, driven by a 14.2% increase in minerals and chrome volumes and a 25.2% rise in automotive volumes and containers on rail.

Transnet CEO Brian Molefe said the cash the company generated from operations rose to R25.3bn.

The company was in the third year of its seven-year-investment programme to refurbish its infrastructure.

Transnet's coal and iron ore freight business showed a marginal decline over the year, partly due to a 33-day strike and maintenance shut-downs at some terminals.

"As a result, the coal line achieved 83.1 million tonnes in volumes from last year's 84.3m tonnes," said Molefe.

Volumes on the iron ore line were affected by a customer's inability to provide the agreed tonnages.

"Transnet's key measure of profitability, earnings before interest, taxation, depreciation, and amortisation (Ebitda) impressed with a 12.3% jump to R23.6bn from the previous year's R21.1bn," Molefe said.

The company awarded 138 full-time engineering bursaries in various disciplines and sponsored 3 699 high school pupils through the rail cadet scheme.