South Africa's Eskom reports $3 billion loss on transmission unit split
FY loss 55 billion rand vs 26.1 billion a year ago
Due in part to charge related to transmission unit separation
Sees profit of more than 10 billion rand in fiscal 2024-25
Adds context and more detail on reason for loss in paragraphs 2, 4, 6-8
By Nqobile Dludla
JOHANNESBURG, Dec 19 (Reuters) -South African utility Eskom on Thursday reported a higher full-year loss of 55.0 billion rand ($3 billion) because of a one-off charge linked to the separation of its transmission unit, but it forecast a profit for the fiscal year ending March 2025.
State-owned Eskom is being split into three companies that will separately manage electricity generation, transmission and distribution, as part of a reform plan announced by President Cyril Ramaphosa in 2019 to make the utility more efficient.
The company made a loss after tax of 26.1 billion rand in the year to the end of March 2023.
Eskom blamed poor performance of its coal-fired power station fleet, a lack of "cost-reflective" tariffs, escalating municipal arrears, and unsustainable debt levels among reasons for its latest loss.
Revenue in the year to end-March 2024 rose 14% to 295.8 billion rand, a presentation on the company's website showed. Sales volumes dipped 3% to 183.3 terawatt hours, as the company implemented scheduled power cuts on 329 days during the year.
Eskom's power cuts, known locally as load-shedding, have curbed economic growth in Africa's most industrialised nation for more than a decade.
But a dramatic turnaround in Eskom's electricity supply this year has seen South Africa go without power cuts for about nine months, boosting business confidence and leading to optimism that economic growth levels could rise.
Eskom forecast on Thursday a profit after tax of more than 10 billion rand for the 12 months to end-March 2025.
($1 = 18.2461 rand)
Reporting by Nqobile Dludla. Additional reporting and writing by Bhargav Acharya.
Editing by Alexander Winning and Mark Potter
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