Pretoria - Power parastal Eskom's half year results showed a R9.5 billion net profit - a development which shows it's on a sustainable growth path.
"Eskom has moved away from recovery mode and is now laying a foundation for sustainable growth. We have a new strategic direction, the build programme is progressing, our funding plan is in place and these results show we are improving the bottom line," Eskom CEO Brian Dames said on Tuesday.
This was the first time the utility published the interim results of the figures boosted by higher electricity tariffs. The R9.5 billion net profit for the six months ended September was an improvement on the R1.1 billion in the first half of 2009.
Eskom said tariffs were now moving towards cost reflective levels. Operating revenue per unit of electricity (kWh) now exceeds the operating cost per unit. Dames said the tariff design includes mechanisms to provide relief for low income earners.
Although Eskom is proud that it has been able to keep the lights on, risks however need to be managed.
"We are proud of the fact that we have kept South Africa's lights on since April 2008, and we are determined to maintain that record, even though supply will be tight up to 2015, and particularly so next year and in 2012, until our large new power stations come on line," said Dames.
Increased supply from Eskom and Independent Power Producers, including electricity from renewable energy sources, are needed to balance the supply and demand for power in the coming years.
Group revenue for the six months was R51.1 billion from September 2009's
R38.3 billion, as revenue per kWh increased to 44.6 cents from 34 cents in the comparative period.
Eskom's operating profit rose to R15.1 billion from September 2009's R2.4 billion, with profit before tax up from R2.1 billion in 2009 to R13.4 billion in the first half of 2010.
The company's operating costs per kWh rose 15 percent to 30.6 cents, compared to 26.6 cents in the first half of last year. Coal stock levels were at 46 days, which exceeds the 42-day March 2011 target. The minimum coal required is 20 days.
Dames noted that all sources of funding for Eskom's capacity expansion programme have been identified. "We now have the certainty we need to go ahead with the build programme," he said.
