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Eskom is set to make massive loss, report shows
The low electricity price increase granted by energy regulator Nersa for the 2016/17 financial year, coupled with declining sales volumes, rising costs and debtor payment challenges, are all working to put Eskom’s revenue, cash flow and bottom line under severe pressure.
As a result, the Eskom Group profit of R6.38bn for the six-month period ending 30 September 2017 is projected to reflect a loss of some R3.55bn by financial year-end. This is according to a final draft report that has been viewed by EE Publishers and Fin24, from Eskom to its shareholder representative, Public Enterprises Minister Lynne Brown, for the second quarter of 2017 ending September 30, 2017.
READ: Eskom is set to make massive loss, report shows
In other Eskom-related news, Brown has said a letter written in November 2015 that set out former Eskom boss Brian Molefe's controversial R30m pension package never reached her.
In her latest affidavit filed Monday ahead of the upcoming court case into Molefe's pension, Brown also called the resolution passed by an Eskom committee in February 2016 to amend Molefe’s contract of employment and increased his salary "bizarre". The case is set to begin later this month.
READ: Brown says she never saw Molefe's pension letter
A new research report, meanwhile, by Meridian Economics has argued that the power utility should decommission its older coal-fired power stations and consider curtailing the Kusile construction programme in order to save costs.
READ: To save Eskom from ruin, SA should ditch nuclear plan and cut coal power - study
Mugabe's refusal to resign said to stall Zimbabwe transition
President Robert Mugabe’s refusal to publicly resign is stalling plans by Zimbabwe’s military to swiftly install a transitional government after seizing power on Wednesday, two people familiar with the situation told Bloomberg.
Mugabe, 93, is being urged to quit after 37 years in power so that the military can claim the change of power isn’t a coup, the people said.
The military leaders want him to quietly step aside to head off tension with the Southern African Development Community, which includes Zimbabwe and South Africa. It has previously intervened when the army took over in Lesotho.
READ: Mugabe's refusal to resign said to stall Zimbabwe transition
Analysts expect that four key figures within Zimbabwe’s ruling party will henceforth determine how the battle to succeed Mugabe plays out
READ: Zimbabwe power brokers: key figures in battle to succeed Mugabe
Economists, meanwhile, are trying to get the measure of Zimbabwe's stock market, given that the deeper the economy has sunk, the more equities have soared.
The nation’s main gauge is up 322% in the past year in dollars, the best performance globally, even as a cash shortage choked businesses and forced people to sleep in streets near banks so they could make withdrawals in the mornings.
Businesses hold off on expansion plans amid uncertainty - report
South African businesses are holding off on further investment and expansion plans as they await more certainty and economic stability, a report has revealed.
The Grant Thornton International Business Report for the third quarter of 2017 showed that the majority of surveyed business executives were delaying business expansion plans due to the turbulent economy.
Of the South African business executives surveyed, 72% said that business operations and decisions were impacted by the volatile economy.
About 68% were delaying business expansion plans, 61% were delaying investment decisions while 38% were considering investing offshore. Just over a quarter (28%) are considering selling their businesses.
READ: Businesses hold off on expansion plans amid uncertainty - report
Govt may consider listing SOEs on stock exchange- Ramaphosa
Deputy President Cyril Ramaphosa says government may consider proposals to list South Africa’s state-owned enterprises on the stock exchange similar to what countries such as China, Malaysia and Singapore have done.
Ramaphosa was responding to a questions from EFF member of Parliament Nazier Paulsen in the National Assembly on Thursday who asked him if it would not be prudent to list SOEs to improve their balance sheets.
Paulsen pointed out though that a “listing” should not be confused with privatisation.
“Yes, it [listing on stock exchanges] happens in China, Singapore, Malaysia and certain European countries, such as Nordic ones. This has resulted in the realignment of their ownership models to a point of where the private sector invest in these SOEs through listings.”
READ: Govt may consider listing SOEs on stock exchange- Ramaphosa
Da Vinci painting of Jesus breaks world record at auction
“Jesus Christ.”
That was the reaction of mega art dealer Larry Gagosian after a rediscovered painting by Leonardo da Vinci became the most expensive work ever sold, soaring to $450.3m (almost R6.5bn) at a Christie’s auction in New York on Wednesday.
Alex Rotter, the auction house’s co-chairman of postwar and contemporary art in the Americas, placed the winning bid on behalf of an unidentified client after a 19-minute war that saw offers at $200m, $300m and $350m fall short. The result obliterated previous world records for an art sale of any kind, including the auction mark of $179.4m for a Pablo Picasso painting sold in 2015.
READ: Da Vinci painting of Jesus breaks world record at auction
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