Cape Town - Eskom said on Thursday its net profit for the first six months of the financial year rose to R1.3 billion from R0.6 billion, but predicted its full year results would again be a loss in the order of R20 billion.
For the first six months, earnings before interest, tax, depreciation and amortisation also improved, reaching R30.6 billion, compared to R28.3 billion in the same period last year, while international sales improved, the power utility said.
But Eskom chairperson Jabu Mabuza said that for a number of reasons, the company was expected to post a loss for 2020 and its financial ratios were likely to deteriorate further before showing an improvement.
“As we know financial performance is seasonal, projections are that we will declare a loss for the full year’s results, similar to that of last year," he said.
"Contributing factors include revenue variance between the winter and summer periods with higher demand in the winter and higher winter prices, higher primary energy costs in summer due to higher production from renewable IPPs in summer, and increased price of coal, employee benefits from salary settlements and escalating municipal arrears debt."