South Africa’s state-owned power company, Eskom, is expected to report a significant annual loss of 15 billion rand ($823 million) according to the Financial Times.
This financial strain is primarily attributed to the immense cost of running open-cycle gas turbines on diesel to maintain electricity supply. Eskom reportedly spent a staggering 33 billion rand on this fuel source.
The company is scheduled to release its official financial results for the year ending March 2024 later this year.
This follows a full-year loss of 23.2 billion rand recorded in 2023. However, Eskom CEO Dan Marokane remains optimistic.
He believes the recent end to electricity blackouts paves the way for potential profitability in the coming year.
“The record amount of diesel used last year resulted in record losses,” Marokane told the Financial Times.
“But we’ve significantly reduced our reliance on diesel, leading to an anticipated substantial financial improvement. If this trend continues, there’s no reason why we can’t even see a profit.”
Eskom recently celebrated a milestone of 100 consecutive days without implementing load shedding, the last occurrence of such a period dating back to late 2020.
Marokane emphasized their unwavering commitment to ending the power blackouts that have significantly impacted South Africa’s economy, the most industrialized nation in Africa.
This positive development is attributed to improved maintenance of Eskom’s coal-powered plants and the contribution of 5 gigawatts of electricity generated by private solar installations.
