Eskom reports good financial performance
ESKOM reported good financial performance for the third consecutive year on the 14 of June 2012, earning a surplus which will be reinvested in full in the company to support its expansion and service debt. This comes after two years in which Eskom has reshaped its business to position it for better performance and future growth, so that it can fulfil its purpose of growing the economy and improving the quality of life of the people of South Africa.
Eskom showed net profit of R13.2-billion for the year to end-March 2012, up from R8.4 – billion for the previous year and only slightly above the R12.8-billion which the company reported for the first half of its financial year to end-September. Eskom’s business tends to be seasonal, with most of its profit earned in the first half of the year, which covers the winter months when tariffs for large customers are higher and maintenance costs are lower.
The Minister of Public Enterprises, Malusi Gigaba, was pleased with the results which come just after celebration of two milestone events in the life of Eskom. On the 8th of June 2012 the President visited Eskom’s new Medupi power station to initiate the final phase of the boiler pressure test on the first unit of the power station.
On Tueasday the 12th of June 2012 the Eastern Cape was celebrating the four millionth household to be connected to electricity since the electrification programme started in 1991.These milestones highlighted the importance of Eskom’s role. Eskom must continue to improve its financial health so that it can invest to support economic growth and job creation and improve the quality of life, says Gigaba. The year to end-March 2012 saw significant progress on Eskom’s capacity expansion programme.