logo

South Africa’s Eskom reports small half-year profit

PUBLISHED: Mon, 14 Dec 2020 11:01:25 GMT

Share
Key Points
  • Eskom made a profit of 83 million rand ($5.5 million) in the six months to the end of September as higher electricity tariffs offset lower sales during the COVID-19 pandemic
  • Debt had fallen to about 464 billion rand by the end of September from 484 billion rand in March
Eskom H1 results with CEO Andre de Ruyte

JOHANNESBURG, Dec 14 (Reuters) – South African power company Eskom made a profit of 83 million rand ($5.5 million) in the six months to the end of September as higher electricity tariffs offset lower sales during the COVID-19 pandemic, it said on Monday

However, the state-owned utility, which is reliant on government bailouts, said its performance would deteriorate in the second half of its financial year and it would report an annual loss of about 22 billion rand.

Watch: Eskom H1 Results

Eskom tends to report stronger results in the first six months of its fiscal year because of factors including higher demand during the southern hemisphere’s winter, lower purchases from independent power producers, and less routine maintenance.

In the six months to the end of September 2019, Eskom made a revised 1.9 billion rand loss.

Eskom said at a news conference that its debt had fallen to about 464 billion rand by the end of September from 484 billion rand in March as repayments outstripped new debt raised.($1 = 14.9999 rand)(Reporting by Alexander Winning; Editing by David Clarke)

(c) Copyright Thomson Reuters 2020. Click For Restrictions – https://agency.reuters.com/en/copyright.html


Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.