Question

Evaluate the current financial performance of Eskom

Answer 1

Eskom reported a R671m ($48.05 million) profit in the first half of the 2018/19 financial year, 89 percent lower than a year earlier.

Eskom said that the profit slump was caused by higher borrowing costs, greater fuel costs and increased expenditure on staff.

Chief executive Phakamani Hadebe will present Eskom's results today. Hadebe last week told parliament's committee on public enterprises that the financial situation at the embattled power utility would remain dire for the next few years, with its debt burden likely to grow from R400 billion to some R550 billion.