South Africa’s state-owned power utility Eskom has reported a profit after tax of 16 billion rand, or about 927 million dollars, for the financial year ending March 2025. It marks the company’s first full-year profit in eight years and a sharp turnaround from the 55 billion rand loss recorded the previous year. The improvement was attributed to government debt relief, newly approved tariff increases, higher electricity sales and cost-cutting measures, Reuters reported.
The operational recovery has been equally notable. Eskom cut load shedding to just 13 days in the past year, compared with 329 the year before, while the volume of energy lost to power cuts fell dramatically. These gains were supported by improved performance at coal-fired plants, lower reliance on costly open-cycle gas turbines and benefits from fuel levy rebates, according to Energize magazine.
“Achieving this profit is a result of consistent execution of our turnaround strategy, but the priority now is to reinvest in the business to ensure long-term energy security,” said Group CEO Dan Marokane, who emphasized the company’s focus on critical infrastructure upgrades. The company’s stronger EBITDA margin and more balanced energy mix were also cited as key factors in the turnaround, EB News Daily reported.
Despite the milestone, challenges remain. Municipal arrears rose to 94.6 billion rand, while governance and audit qualifiers continue to cloud investor sentiment. Eskom has committed to reinvesting profits, with more than 320 billion rand earmarked.
