South Africa’s state power utility Eskom expects another solid financial year, with results likely to mirror last year’s gains after a strong first half driven by higher tariffs and reduced finance costs. The improved South Africa Eskom profit outlook comes as the company continues recovering from years of instability and widespread load shedding.
Eskom Financial Performance 2024 Shows Strong Momentum
Eskom posted a profit after tax of 16 billion rand last year—its first full-year profit in eight years—following a major reduction in South Africa electricity shortages that had slowed Africa’s most industrialised economy.
Its rebound, supported by a multi-year government bailout and better output from coal-fired power stations, is also a key indicator of broader Eskom financial performance 2024 trends.
During the first half of the current financial year, Eskom delivered a profit after tax of 24.3 billion rand ($1.4 billion). The period covers the southern hemisphere winter, when demand typically rises and plant maintenance schedules are lighter.
Eskom said the surge confirms that last year’s South Africa Eskom profit was not a one-off improvement.
Revenue Growth and Lower Finance Costs Boost Results
For the six months ending September, Eskom’s revenue increased by 4% to 191.3 billion rand, supported by a 12.7% average tariff hike.
Net finance costs dropped 14% to 15.3 billion rand as interest rates fell and debt levels eased. However, municipal debt remains a challenge, rising to 105 billion rand compared to 90.1 billion rand a year earlier.
The utility also noted significant progress in reducing outages. Power cuts occurred on only four days during the period—an extraordinary turnaround from 2023, when South Africa electricity shortages resulted in load shedding on more than 300 days.
Eskom remains South Africa’s dominant electricity provider, operating coal-fired plants alongside a nuclear station and several smaller renewable and diesel-powered facilities.
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This story was first reported by Reuters. Read the full article here.
