Share

Eskom posts 22% profit, maintenance costs go up 11%

Cape Town – Government funding helped Eskom post a 22% increase in net profit for the six months ended 30 September 2015.

Eskom CEO Brian Molefe said the entity’s profit increase R11.3bn, while achieving a 9% increase in Ebitda (Earnings before interest, taxes, depreciation and amortization) to R24.9bn

Revenue increased by 8%, while primary energy costs went up by 7.7%, he explained.

Molefe said Eskom received the first tranche of R10bn of government equity injection, while R13bn is expected in March 2016.

R60bn in government loans was converted to equity, while R46bn of the R55bn funding for the year was secured, which improved the liquidity position, said Molefe.

“Operating expenses are under control,” he said. “Maintenance costs increased by 11.2% due to strategy to perform more planned maintenance.”

Molefe said payment agreements have been signed with 50 defaulting municipalities, including 15 of the top 20. Approximately 52% of the outstanding amount is within due date.

He also said plant availability has improved to 74.4% as at November 16 2015 due to the positive impact of planned maintenance, says Brian Molefe.

In the period under review Eskom has transformed the classic game Tetris into a planning tool to improve maintenance planning on its ageing power fleet, thus avoiding load shedding.

WATCH: How classic game Tetris saved Eskom


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.3%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.65
-0.3%
Rand - Aus dollar
12.38
+0.3%
Rand - Yen
0.13
+0.5%
Platinum
905.16
-2.0%
Palladium
1,006.63
+0.1%
Gold
2,157.24
-0.2%
Silver
24.94
-0.4%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders