Eskom posts profit, but load shedding could be back this weekend
31 Jan 2025
Eskom has announced the possibility of loadshedding returning this weekend, despite the utility reporting a significant improvement in financial performance for the first half of the financial year. This comes after the company had successfully suspended loadshedding since March 2024, due to enhanced plant performance.
Tutuka power station
“This is a potentially temporary setback. Loadshedding is largely behind us due to the structural improvements in our generation fleet,” group CEO Dan Marokane said in a statement today.
“However, over the past seven days, we have experienced several breakdowns that require extended repair times. This has necessitated the use of all our emergency reserves, which now need to be replenished.”
“Consequently, we are closely monitoring the status of our current emergency reserves, and loadshedding up to Stage 4 may be implemented over the weekend.”
While this development points to persistent challenges, Eskom's interim financial results for the six months ending 30 September 2024, reveal a net profit of R17.8bn, a big turnaround from the R55bn loss reported in the same period last year.
The improved financial performance is mostly credited to better plant performance, lower marginal electricity generation costs, and a 12.74% tariff increase for the 2025 financial year.
Load shedding reduction helped increase revenue
Eskom's EBITDA increased to R61.6bn from R37.6bn the previous year.
The suspension of loadshedding and the tariff hike have also contributed to a surge in sales and revenue.
However, the financial performance was partially offset by an increase in overdue electricity receivables, primarily due to growing municipal debt, an issue Eskom is addressing in collaboration with the National Treasury and shareholder representatives.
Job cuts reflecting on bottom line
Eskom's ongoing staff retrenchments have shown a decrease in employee benefit expenses, dropping to R20.4bn from R17.3bn in the previous year.
This is part of the company's broader efforts to enhance operational efficiency and financial sustainability.
Eskom management remains optimistic about improving financial sustainability and operational efficiency.
They are actively working with the government to resolve municipal debt issues and ensure the successful implementation of the Electricity Action Plan.
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