Eskom releases financial results, profit declines by 89%

JOHANNESBURG - South Africa's power utility, Eskom, today released their interim for the first six months of the 2018/19 financial year.

Eskom reported a R671m ($48.05 million) profit in the first half of the 2018/19 financial year, 89 percent lower than a year earlier.

Eskom said that the profit slump was caused by higher borrowing costs, greater fuel costs and increased expenditure on staff.

Chief executive Phakamani Hadebe will present Eskom's results today. Hadebe last week told parliament's committee on public enterprises that the financial situation at the embattled power utility would remain dire for the next few years, with its debt burden likely to grow from R400 billion to some R550 billion.

"The institution is really under severe financial strain," Hadebe told the committee.

Acting chief financial officer Calib Cassim said the problem was partly the company's inability to service its debt from its earnings, forcing it to borrow more.

View Eskom's results below:

#EskomInterimResults2018: Cash flow statement for the six months ended 30 September 2018 by Eskom newly appointed GCFO, Calib Cassim @Fin24 @BDliveSA @busrep @TimesLIVE @EngNewsZA #EskomResults pic.twitter.com/UO4H0wEiRR

— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2018

@Eskom_SA is facing severe challenges:

- Financially: Eskom is in a debt reliant liquidity situation that has resulted from low tariffs, a decline of 0.8% in sales volumes year-to-date, primary energy and employee benefit costs increasing, and the continuing new build programme pic.twitter.com/8AEgx2ixRA

— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2018

Eskom's Chairman, Jabu Mabuza's speech shared at the #EskomInterimResults2018 is available on the following link https://t.co/h2oIXillDr #EskomResuts @Fin24 @BDliveSA @busrep @TimesLIVE @EngNewsZA @ESIAfrica pic.twitter.com/pS2xvDYu6P

— Eskom Hld SOC Ltd (@Eskom_SA) November 28, 2018