SOUTH AFRICAN POWER UTILITY REPORTS 4.6 BLN RAND PROFIT FOR YEAR TO MARCH 2016

South African national power utility Eskom has reported a sound financial and operational footing compared with a year ago as net profit went up to 4.6 billion Rad (about 303 million US dollars) in the year ended March 2016 from only 200 million Rand previously.

Releasing the company’s financial results here Tuesday, Eskom Group Chief Executive Officer Brian Molefe said the stability at both board and executive management levels of the company was a launch pad to drive accountability and better manage the business.

“With new leadership and intensified staff engagements, we have stabilized the organization,” Molefe said.

Eskom was plagued by board and management changes until Molefe was appointed permanent chief in September last year after he served in an acting capacity for six months.

Molefe was appointed after former chief executive Tshediso Matona was suspended in March when Eskom announced it would start an independent inquiry into the State-owned utility, which was battling with maintenance of its generators, forcing it to implement load-shedding.

“Despite the challenges we face, we continue making progress in the technical and operational areas of the business,” Molefe said.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), a measure of a company’s operating performance, surged 37.4 per cent to 32 billion Rand from 23.3 billion Rand in the previous year.

The EBITDA margin for the period under review improved to 19.8 per cent from 15.9 per cent in the previous year. Revenue rose 10.6 per cent to 163.4 billion Rand from 147.7 billion Rand previously.

“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 23 billion Rand,” Molefe said.

“Operating results also improved due to stringent cost containment measures.”

Source: Nam News Network