ESKOM SEES LOSS OF OVER R11.2BN DESPITE TURNAROUND
Date: Nov 29, 2018
South Africa’s struggling state-run power firm Eskom on Wednesday forecast a loss before tax of more than R11.2 billion ($800 million) in the current financial year, despite a turnaround plan designed to shore up its finances.
Eskom, Africa’s largest public utility, reported a R671 million profit in the six months to the end of September but said its performance in the next six months would be hurt by a wage deal with trade unions and greater maintenance costs.
“Eskom is in a state of severe financial difficulty,” Eskom chairman Jabu Mabuza told a news conference. “In its current state, Eskom is not sustainable.”
President Cyril Ramaphosa appointed a new board at Eskom early this year, in one of his first moves since replacing Jacob Zuma as leader of the ruling African National Congress.
But efforts to turn the power firm around have been hampered by severe fiscal constraints, labour unrest and coal shortages at many of the firm’s power stations.
