Tag: South Africa economy

Eskom has recorded its second consecutive year of profitability, with the power utility saying its turnaround strategy is restoring both operational and financial stability.

The utility on Monday announced its results for the 2026 financial year ended 31 March, reporting a group profit after tax of R30.3 billion, more than double the restated R14 billion recorded in 2025.

Eskom’s EBITDA margin also improved, rising to 30.63% from 28.75% in 2025.

Eskom chairperson Mteto Nyati said the profit was the result of improved operations and tighter cost controls.

“Profit is not the opposite of that public purpose. It is what makes the purpose possible,” Nyati said.

He said the improved financial position would allow Eskom to reinvest in its business, including the Eskom Green programme, distribution services, coal fleet reliability and grid expansion.

Group CFO Calib Cassim said the utility’s financial recovery was being matched by its operational turnaround, with South Africa having gone more than a year without load shedding.

Eskom also reported a healthier balance sheet, improved liquidity and positive credit-rating actions from S&P Global, Fitch and Moody’s.

The utility received its first credit-rating upgrade in more than a decade, which Cassim said would improve access to cheaper borrowing to fund future capital expenditure.

He also credited government’s debt-relief support with freeing up cash that could be reinvested into Eskom rather than being used to service debt.

Group CEO Dan Marokane said Eskom was moving from recovery to transformation, with a focus on becoming a financially sustainable, competitive and future-ready utility.

He said sustained profitability and improved efficiencies would help Eskom work with government to address electricity affordability, while the utility aims to keep price increases in the single digits.

Eskom is also reinvesting profits into maintaining and expanding critical infrastructure and developing technologies to support its decarbonisation efforts.

Marokane highlighted the wider economic impact of Eskom’s turnaround.

According to the Council for Scientific and Industrial Research, load shedding cost the South African economy up to R2.8 trillion in 2023, falling by 83% to R481 billion in 2024.

Eskom recorded just four days of load shedding during the 2026 financial year, totalling 26 hours.

Marokane said a financially sustainable Eskom would reduce pressure on the national budget and sovereign credit rating while improving energy security and creating greater confidence for investment.

He said Eskom’s 24/7 baseload electricity supply remained essential to integrating renewable energy into the national grid and supporting economic growth.