Eskom’s profit plunges as operating costs soar

Business Day Live 10 July 2013.

ELECTRICITY provider Eskom said on Wednesday its net profit fell more than half to R5.18bn as operating costs, mainly coal, shot up 31% in the year ended March 2013. Revenue rose 12% to R128.8bn, but Eskom said operating costs jumped to 54.2c per kilowatt hour, from 41.3c/kWh.

“Revenue growth has been offset by escalating expenditures mainly due to an increase in primary energy costs,” the company’s finance director, Paul O’Flaherty, said in a presentation.

Mr O’Flaherty had resigned and would leave on Wednesday, chairman Zola Tsotsi said…

(Contributor’s note: I wonder if Mr O’Flaherty received a performance bonus on his resignation?)


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