Transnet’s half-year loss narrows as lockdowns ease

Rail and port operator Transnet forecast a “better” year-on-year financial performance for fiscal 2022 after reporting a smaller interim net loss, helped by the easing of lockdowns in the country.

In unaudited results released late on Friday the company said its loss narrowed to R104m for the six months ended September, compared with a loss of R3bn in the Covid-19 pandemic-hit year-ago period, while revenue rose 11.3% to R35.6bn.

Transnet, which has breached its loan covenants after receiving a qualified audit from the auditor-general, said it had raised long-term funding of R6.1bn against its 2022 corporate plan funding requirement of R10.8bn for the 2022 fiscal year.

The company said it was working with its lenders as a result of the audit opinion “which was as a result of the legacy of non-compliance to the Public Finance Management Act requirements with regards to irregular expenditure reporting which also contributed to the Moody’s downgrade of November 3 2021”.

It said it was progressing with a turnaround strategy while partnerships between it and the private sector “will leverage synergies” with its capabilities.

While it was late with its annual results for the 2021 financial year, which were released a fortnight ago, it said it expected to release audited interim results on or about December 15.

With Reuters