Eskom now shows a profit

STATEMENTS: AUDIT OPINION STILL QUALIFIED AND STATUS AS A GOING CONCERN DOUBTFUL

- Antoinette Slabbert

MOUNTING. At the end of March, municipal arrears amounted to R94.6 billion, representing a 27% increase from the previous year. Picture: Bloomberg

(Bloomberg)

Eskom has reported a profit for the financial year 2025, marking the first time in eight years. However, its financial statements remain qualified due to material uncertainties regarding its going concern status, among other factors.

The improved results, announced at a media briefing yesterday, follow the government's R254 billion debt relief package, which was allocated to Eskom over three years, with the current financial year being the final one.

Despite the debt relief, Eskom's debt still stood at R372 billion at the end of March, down from R412 billion a year before. While far more than the R250 billion the utility considers to be sustainable, it is in line with the forecast at the end of the previous financial year.

Eskom CFO Calib Cassim told Moneyweb that the government debt relief package was the catalyst for operational recovery, which has seen the energy availability factor rise to about 70%, resulting in the virtual eradication of load shedding and a return to profitability.

Thanks to the three-year debt relief window, Eskom was able to release sufficient funds on time for capital expenditure and maintenance, without needing to resort to the market for funding, which has contributed to improved generation performance, Cassim explained.