Transnet swings from over R8bn FY loss to a R5bn profit

State-owned ports and rail logistics monopoly Transnet has posted a noteworthy recovery from the Covid-19 financial fallout, reporting a R5 billion profit for its full-year ended 31 March 2022.

This means it has seen a swing of some R13 billion, from a more than R8 billion loss for FY 2021, back to a profit position.

The group also trumpeted at the release of its latest results on Wednesday that it has secured its first unqualified audit in four years.

Financial highlights:

• Revenue increased 1.8% to R68.5 billion;
• Ebitda (Earnings before interest, taxation, depreciation and amortisation) improved
  by 20.5% to R23.4 billion;
• Profit for the year is R5 billion from a loss of R8. 7 billion in the prior year.
• Cash generated from operations after working capital changes increased by 18.1% to R29.1 billion; and
• Gearing and cash interest cover are within debt covenant requirements.

“The significant increase in profits is mainly attributable to the improvement in the Ebitda, a decrease in asset impairments and an increase in fair value adjustments related mainly to investment property,” the group noted in a JSE Sens statement to bondholders.