EXTRACT

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.

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