On Monday, Eskom announced that earnings before interest‚ tax‚ depreciation and amortisation (ebitda) increased from R38-billion to R45-billion while revenue was flat at R177-billion‚ with electricity sales up 0.9%.

A net loss of R2.3-billion compared poorly with last year’s profit of R900-million. The net finance cost grew by 61% to R23-billion.

This was linked to fewer costs being capitalised and a growth in borrowings. On the R19.6-billion irregular expenditure — increased from R3-billion in the previous financial year — Eskom said 60% of incidents related to administrative noncompliance‚ and noted that irregular spending was not necessarily fruitless and wasteful expenditure.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.