" The Current Financial Performance Of Eskom "
Answers
Eskom releases financial results, profit declines by 89% JOHANNESBURG - South Africa's power utility, Eskom, today released their interim for the first six months of the 2018/19 financial year. ... Eskom said that the profit slump was caused by higher borrowing costs, greater fuel costs and increased expenditure on staff.
Answer:
Current financial performance of Escom
Explanation:
It is obvious that Escom has seen a major decline in its performance and so in its financial statistics ever since its establishment in 1922 onwards till 2019 February.
With what started in 1922 as a small power supply company in SA, it was believed to generate only 1000 MW of power. Later in 1939, 31st December, it managed to generate around 954,146 KW of power.
Later on in 84 and 83 it saw a major demand and commissioned its power stations.by 1987, escom was believed to be handling over 27 of its major power generating stations of 36,000 MW capacity. Later in 1994, Escom also porivded power to cover over 300,000 households in SA.
By the year 2001, Escom was forced to reduce its cost of power supply to households and commercial purpose in SA. By 2019, the company was already on its verge to fight against rising debt in the market with 15percent of debts within the state.
Its current debt was also increasing by R1bn every month to over R29.5 bn later in 2018. Presently it is having a capacity of over 45,000 MW but is able to generate only 27,000 MW on account of its debts.