Eskom reports a strong financial performance
Eskom today released interim results which show a continued strong financial performance, with a surplus that will be reinvested in the business to ensure Eskom is financially sustainable and can repay the debt raised to fund its new build programme.
The results for the six months to end September 2011 reflect increased net profit of R12.8 billion (2010 R9.5 billion), on revenue which increased to R63.9 billion (2010; 51.1 billion).
Eskom's financial results tend to be highly seasonal. All the profit is earned in the first half of the financial year, which covers the winter months when electricity demand is higher and large customers pay higher tariffs, while maintenance costs are lower because less planned maintenance takes place.
The revenue growth was driven mainly by higher electricity tariffs, reflecting the 25.8% increase (including the environmental levy), which the National Energy Regulator (Nersa) allowed Eskom from 1 April 2011. "We are pleased to report that we have now had two and a half years of strong financial performance. This is essential for Eskom to raise the funding it needs to invest in South Africa's future," said Eskom Chief Executive Brian Dames.
Electricity sales increased by only 0.9% to 114 043 GWh in the six months to end-September, reflecting muted economic growth, labour unrest in sectors such as metals and mining, and the impact of higher tariffs. Revenue per kilowatt hour sold increased to 55.3 cents (44.6c), while operating costs rose to 38.2 cents (30.6 cents).