Eskom interim profit plunges 89%

Eskom’s first-half profit plunged 89% and the situation at the South African state-owned power utility is likely to worsen in the next six months, chairman Jabu Mabuza said on Wednesday.

Profit plunged to R671-million in the six months to September from R6.3-billion a year earlier, while finance costs rose to R15.2-billion from R11.9-billion, Mabuza told a presentation in Johannesburg on Wednesday.

The company’s debt burden is “impossibly high”, Mabuza said, even as it reported improved liquidity and announced that 73% of funding for 2018/2019 is secured.

Acting chief financial offer Calib Cassim was appointed to the role on a permanent basis.  — Reported by Hilton Shone, (c) 2018 Bloomberg LP