Eskom reports R55 billion loss, predicts profit by 2025

South Africa’s state utility, Eskom, reported a staggering R55 billion ($3 billion) loss for the fiscal year ending March 2023, largely due to a one-off charge linked to the separation of its transmission unit.

However, the embattled utility is optimistic about its future, forecasting a profit of over R10 billion for the fiscal year ending March 2025.

Eskom is undergoing a major restructuring to split into three units—generation, transmission, and distribution—as part of President Cyril Ramaphosa’s 2019 reform plan to improve efficiency. The company attributed its losses to underperforming coal power stations, unsustainable debts, escalating municipal arrears, and inadequate tariffs.

Despite these challenges, revenue rose by 14% to R295.8 billion for the year ending March 2024. However, sales volumes dropped 3% due to 329 days of scheduled power cuts—commonly known as load-shedding—which have long stifled South Africa’s economic growth.

In a surprising turnaround this year, Eskom’s supply stabilized, with no power cuts reported for the past nine months, sparking optimism for economic recovery. This improved reliability has boosted business confidence, positioning Eskom for its anticipated financial rebound by 2025.