JOHANNESBURG - Eskom’s financial turnaround is gathering pace, with the power utility more than doubling its annual profit and recording its second consecutive year in the black.
The utility posted a profit after tax of R30.3-billion for the year ended March 2026, up sharply from R14-billion a year earlier.
Eskom says the result was driven largely by improved power station performance, cost discipline and lower reliance on emergency diesel generation.
"That performance was earned through operational recovery and cost discipline, " Eskom chair Mteto Nyati said in a statement.
"We have moved from recovery to transformation, shifting our focus from stabilising the business to building a financially sustainable, competitive and future-ready Eskom."
While electricity sales volumes declined by 6.2 percent, higher tariffs helped drive a 4.1 percent increase in revenue.
At the same time, improved generation performance reduced Eskom’s reliance on costly open-cycle gas turbines, contributing to a R10.6-billion reduction in spending on Eskom-owned OCGT fuel and storage costs, as well as IPP OCGT costs.
Eskom says its stronger financial position gives it greater room to invest in the infrastructure needed to secure the country’s electricity supply.
Profits will be reinvested in Eskom’s capital expenditure programme, which is expected to grow from R45-billion a year in 2026 to more than R70-billion a year from 2029.
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Nyati says the utility will also reinvest in Eskom Green, distribution, the reliability of its coal fleet and grid expansion.
“It is this financial performance that allows us to reinvest earnings where they matter into Eskom Green,” Nyati said.
Eskom says its cash and cash equivalents stood at R124.9-billion at the end of March, although R38-billion of that was subsequently used to settle bonds that matured in April.
The utility also says its debt securities and borrowings fell to R356-billion at the end of March and to about R320-billion by the end of June.
Despite the improved financial position, Eskom continues to face significant challenges, including declining electricity sales and rising municipal debt.
Municipal arrears increased by 17.9 percent to R111.6-billion at year-end and reached about R119-billion by June.
Eskom says the debt could rise to as much as R358-billion by 2031 if decisive intervention is not implemented.
The utility also received a qualified audit opinion relating to the completeness of irregular expenditure reported under the Public Finance Management Act.
However, Eskom says the qualification no longer extends to the accuracy of irregular expenditure reported or losses due to criminal conduct.
Eskom says it remains focused on strengthening its financial sustainability while investing in generation, distribution and transmission infrastructure.
The utility recorded only four days of load shedding during the 2026 financial year, totalling 26 hours.