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Eskom’s 2018/19 financial year losses above R20 billion

SABC News Jabu Mabuza - Eskom’s 2018/19 financial year losses above R20 billion

Eskom has reported a loss of R20.7 billion in the 2018/2019 financial year. This was announced by Chairperson Jabu Mabuza at a media briefing at Megawatt Park Johannesburg. He says the board is committed to achieving its turnaround plan.

Mabuza has been appointed as both the acting Chair of Eskom, and the acting GCEO. Government has allocated a total of close to R130 billion to the utility over the next three years in a bid to stabilise it.

Mabuza says the R20 billion loss is an increase over the previous financial year.

“Ladies and gentleman today Eskom releases results that as expected are unfavourable. The organisation disappointingly incurred a net loss after tax of R20.7 billion, a significant increase from the R2.3 billion loss experienced in the previous year coupled with an audit qualification on PFMA compliance. We remain grateful to our shareholder the government of SA for their unfailing support during these troubled times,” says Mabuza.

Watch Eskom briefing:

Mabuza says the board remains committed to achieving its turnaround strategy which includes the unbundling of the power utility into three separate business entities. Addressing the media at Megawatt Park in Johannesburg, Mabuza says the turnaround strategy is underpinned by four key factors.

“The board is committed to drive the implementation of this strategy with the support underpinned by the following pillars. The balance sheet optimisation, cost containment, revenue growth supported by appropriate tariffs, the separation of Eskom’s businesses into three independent businesses which allow for extraction of efficiencies. Although we face serious financial and operational challenges, we as a board are committed to achieving our turnaround plan through disciplined execution and stewardship,” says Mabuza.

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