Price reprieves depress state-owned Transnet’s half-year earnings slightly
Price reprieves extended to customers pushed down Transnet’s total earnings 0.3% for all assets in the six months to September. The state-owned freight and logistics company gave R628m in temporary reprieves to its customers due to "developmental objectives", acting CE Siyabonga Gama said at a briefing in Johannesburg on Monday. Revenue for the half-year to September rose 1.2% to R32.6bn. "This was driven largely by (a 12.8%) increase in railed containers and automotive volumes as a result of concerted efforts to shift rail friendly cargo from road to rail," Gama said. Operating expenses grew 2.3% to R18.7bn. But the company was looking to save R1.8bn due to a moratorium on vacancies, limited overtime and a reduction in consulting costs, Gama said. Personnel costs rose 7.6% and electricity costs 8.6%, together constituting 68% of total operating expenses. Despite low growth forecasts, Transnet was in a liquid position and able to proceed with a multibillion rand modernisation progra...
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