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Johannesburg - Eskom CEO Brian Molefe revealed that Eskom has improved its financial and operational results during a presentation on the power utility's integrated results at Megawatt Park on Tuesday.
Molefe - fresh from a MIT course in nuclear energy for utility executives in the US - said he "forgives" energy expert Chris Yelland for saying that South Africa would have more load shedding. "There has been no load shedding for 11 months, since July 2015," he said.
Stability at board and executive management levels are among the reasons which have driven the improved management and operations of the business.
“With new leadership and intensified staff engagements, we have stabilised the organisation," he said. "Despite the challenges we face, we continue making progress in the technical and operational areas of the business.
"Through our robust improvement plan, we have risen to the challenge of completing necessary maintenance of our ageing power stations, while delivering on our new build projects, which will add capacity to the grid in the future."
Eskom chairperson Ben Ngubane said this has been a defining period for Eskom, which has moved forward steadily despite the challenges of the previous year.
"The Design To Cost programme contributed to improvements to operational and financial sustainability and to ensure reliable and efficient electricity supply," he said.
Eskom's bottom line profit for the year ending 31 March 2016 was R4.6bn.
Revenue rose 10.6% to R163.4bn. The public utility's EBITDA increased by 37.4% to R32bn, up from R23.3bn reported in the previous year.
Cost savings reached R17.5bn, above the R13.4bn target and surpassing the previous year's R9bn, said Molefe. And 57% of funding for 2016/2017 has been secured.
“Financial performance improved against the previous year, and all financial ratios showed improvement due to improved operating results, as well as the conversion to equity of the subordinated government loan and equity injection of R23bn,” said Molefe. “Operating results also improved due to stringent cost containment measures.”
