Eskom reports R12.2bn profit
Fin24

Eskom reports R12.2bn profit

2013-12-05 12:06

Cape Town - Eskom reported a profit of R12.24bn for the six months ending September 30 2013, but warned that it will be somewhat eroded in the second half of the financial year.

First-half profit declined marginally from R12.63bn in the same period last year due to increased operating costs.

It said on Thursday that revenue in the first half of the 2013/14 financial year increased 6.1% to R77.8bn as electricity tariffs rose.

Revenue per kilowatt hour sold increased to 69 cents, compared with 64.9c in the same period in the previous year, while operating costs rose to 55.3c from 47c.

Primary energy costs increased by 25.3% from 22.5 c/kWh (September 2012) to  28.3 c/kWh in the review period mainly due to higher coal costs (up 13.3%) and as a result of the utilisation of open cycle gas turbines (OCGTs) the cost of which increased by R2.3bn.

However, the parastatal said this benefit was offset by escalating operating expenditures mainly due to an increase in primary energy costs.

“The story during this period is one of co-operation and resilience,” outgoing chief executive Brian Dames said in a statement.

Eskom announced on Thursday that Dames would step down in March next year.

“Despite a highly constrained system, we’ve taken significant steps with our partners to avoid rotational load-shedding and we are addressing the tariff constraints in every aspect of our business,” he said.

Eskom said the second half of the financial year falls within the summer season, during which it records lower sales and maintenance expenditure.

Eskom acting chief financial officer Caroline Henry said the utility is actively managing its finances, adding that it raised $1bn (R10.5bn at the current rand/dollar exchange rate) through an international bond issuance.

“The bulk of funding required for the new-build programme has been identified and secured.

"Eskom will require robust income far beyond the new-build programme as the debt we incurred to fund these projects will have to be paid off over the next few decades,” said Henry.

Eskom chairperson Zola Tsotsi said: “We’ve kept the lights on thanks to the efforts of the private sector, the public, and thousands of dedicated Eskom employees.”

 - Fin24

Comments
  • Pierre Frewd Juice - 2013-12-05 12:14

    Maybe they could have bought us some Nandos' beforehand?

      Mike Heyns - 2013-12-05 12:37

      In your wildest dreams perhaps!! Did you see, they are still saying they are "struggling to keep the lights on...!" Just in case someone may come with the idea to use some of these profits to pay for the e-tolls!!

      Japie JJ du Toit - 2013-12-05 14:09

      he is jumping ship before the next election, and he knows he is going to get a real nice deal. again the consumer get screwed, and then they brag about the profit they make. If the pwer stations were maintained and news ones were develop ealier, it would have cost much less. ag man just forgot that somehow the winning tender need to feed back to the giver.

  • Kayley Buckley - 2013-12-05 12:15

    Brian is this not why you leaving???Hell that's a lot of money! AND IM SURE YOU SAYING "SHOW ME THE MONEY"

  • Baas Piet Pompies - 2013-12-05 12:15

    Lets see what flashy cars these boys buy. And I still won't be surprised when the next electric rates gets reviewed.

      SunshinyDay - 2013-12-05 13:13

      I don't know why NERSA allows electricity increases with these huge profit amounts being flashed everywhere. Someone should actually review NERSA, they don't seem to be helping us very much.

  • drsparky - 2013-12-05 12:16

    Nice... now take all that money and pump it into renewable energy harnessing.

  • Daryn Varney - 2013-12-05 12:16

    R12bn profit and then they want a 25% increase every year? They just wanting bigger bonuses

  • Magda Henning Human - 2013-12-05 12:16

    So R12.2bn will be Dames package.

  • Andrew Terr - 2013-12-05 12:22

    This is not f%$%NG news.With their tariffs going up they have to make a profit.Eskom should build a windfarm for the ANC government and they can power it with the amount hot wind they can blow.

  • Preggy Govender - 2013-12-05 12:24

    Thieves!

  • Bretton Eveleigh - 2013-12-05 12:25

    yip... so big christmas bonuses must come from somewhere!

  • Kagiso Booi - 2013-12-05 12:39

    Job well done Mr Brian Dames!

  • Adriaan Wehmeyer - 2013-12-05 12:39

    Built a nuc station in northern cape.

  • Craig Allen Salter - 2013-12-05 12:45

    we need another electical provider in sa to cut eskom down to size

  • Stuart Robinson - 2013-12-05 12:50

    show me a business (of this scale) that post a 16% net return on sales (net margin) anywhere else in SA - the profit of R12bn surely should create funding of magnitude!!!

      Kayley Buckley - 2013-12-05 12:55

      True Stuart.......and it belongs too..............?

  • Travis Palm - 2013-12-05 12:54

    It should be illegal for a company to make so much profit off of selling something which is a basic necessity. And what is this nonsense that they will be paying off debt over the next decades!? How the FFFFFF@@*#$ do you incur debt when you are making such huge profits! These slimy bastards could have built 20 f*cking power stations with 6 months profit alone!

  • Sifiso Sosibo - 2013-12-05 13:03

    Why NOT use half for building more power grids instead of always piling us with DOUBLE DIGITS hikes??? It makes GOOD business SENSE!!!

  • Bantu Holomisa - 2013-12-05 13:10

    How much is Chancellor House is getting. Good timing for next year's election spending spree by the ANC.

  • SunshinyDay - 2013-12-05 13:11

    For a company that is "owed" so much money, they sure are making a heck of a profit. Seeing as they are making so much, do you think they would be so kind as to lower electricity? I thought they weren't allowed to even be making profits?

  • Sisie Indola - 2013-12-05 13:14

    Well now they will all get noddy badges, bonuses, increases and a big fat Year End Function. And then in the New Year they can cry poverty and demand an increase in tariffs. What a con!

  • Mpho Selepe - 2013-12-05 13:20

    And yet we are expected to accept tarrif hikes under the claim of need for funds to provide electricity.Wait until to you see the big bonuses and fat cheques,and yet we have to fork out more money for its service. Does it even have to make profit in the first place?

  • Isabel Rodriguez - 2013-12-05 13:30

    Very nice but why tell us, its not like eskom will bring down prices, no no no, remember we have to award ourselves with huge bonuses. So sick of the big fat cats sitting in power making money out of us, be it through elec hikes, toll roads, I mean really, can I put a toll on ZUMA NKANDLA homestead to get the money back R2000 000.00

  • Tawizee - 2013-12-05 13:56

    Now they are going to increase the tariffs to "round off" the figure to R20bn

  • Simon Hewitt - 2013-12-05 14:11

    FANTASTIC !!!! there's 12bn of the 20bn required to pay SANRAL - E-toll problem almost solved......

  • Dean Berzen - 2013-12-05 14:28

    But they cant keep the lights on!!!!!!

  • Magomarele Gomi Thobejane - 2013-12-05 15:42

    Their employees are still the highest paid in the country compared to their peers in other Orgs.

      waldo.olivier - 2013-12-21 16:02

      Yeah right, Sasol pays their engineers much more than Eskom.

  • Spookhuis Mags - 2013-12-05 16:55

    R12bn profit and I have to f*cken pay R1000 a month before I turn a F*uken light on. Farm life....Thanks

  • Des Cider - 2013-12-05 17:11

    This is a utility company... it should not be reporting a profit at all let alone an excessive profit!

  • Mark Russell - 2013-12-05 20:25

    Wow! Truly amazing what a monopoly and government backing can do to boost your profits in the back of failed performance. Life is good at eskom while the tax payers ate drained of every last cent with no guarantee of receiving services. Great work eskom!

  • Zaan Fourie - 2013-12-05 21:23

    It's very easy to make a profit if you have no competition, run an ineffective operation and dictate the rate consumers must pay. Wonder to whose pocket this will go too?

  • i.see.a.cupcake - 2013-12-06 07:31

    Why isn't this money taken and put back into the economy? Why is there even a profit margins to keep everyone warm and able to cook there food. When are we as people of South Africa going to stand up and say we have had enough?!!!!!

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