Eskom has announced a profit after tax of R16 billion for the full year ending March 2025, up from a massive R55 billion loss recorded in the previous year.
The power utility noted that the profit was driven by significant cost reductions in its primary generation costs, and reduced spending on open-cycle gas turbines.
The group recorded a profit before tax of R23.9 billion (2024: loss of R25.5 billion), marking the first return to profitability in eight years.
The results signal a welcome shift for the State-owned enterprise (SOE), which, just a few years ago, was at the epicentre of a load shedding crisis that posed a danger to the economy and prompted President Cyril Ramaphosa to announce the Energy Action Plan.
Ploughed back into the SOE
Now, Eskom Group Chief Executive Dan Marokane revealed that the profits will be ploughed back into the SOE.
“The focused and ongoing efforts of Eskom’s 42 000 employees in delivering the turnaround strategy have produced tangible results.
“We are reinvesting profits back into national assets. Over the next five years, with continued rigorous focus, we will invest more than R320 billion in sustaining and expanding our infrastructure for the long-term benefit of the nation. In a break from the past, we are accelerating the review and restructuring of our cost base.
“This is being done within the framework of the expected future single-digit tariff increases allowed by NERSA [National Energy Regulator of South Africa], as we drive efficiencies and take control of the factors within our control to address the affordability of electricity,” Marokane said.
Job creation
He highlighted Eskom’s “vital” importance to the country’s economic growth prospects and job creation.
“According to a report by the Council for Scientific and Industrial Research, titled ‘Utility-scale Power Generation Statistics in South Africa’, published on 17 March 2025, the South African economy lost up to R2.8 trillion due to load shedding in the 2023 calendar year.
“In 2024, that figure was reduced by 83% to R481 billion,” Marokane noted.
The power utility presented its group annual results for the 2025 financial year ended 31 March 2025 at Megawatt Park on Tuesday afternoon.
Key notes from the announcement include:
- Profit before tax of R23.9 billion, underpinned by a stronger Earnings Before Interest, Taxes, Depreciation, and Amortisation margin of 29.05%, supported by a 12.74% standard tariff increase and a 14% reduction in primary energy costs, driven by improved coal plant reliability and reduced reliance on expensive Open-Cycle Gas Turbines (OCGT), resulting in year-on-year diesel savings of R16.3 billion.
- Energy not supplied as a result of load shedding declined significantly to below 0.4TWh (2024:13.2TWh). This corresponds to a total load shedding duration of 175 hours (2024: 6 367 hours) and a decrease in the number of load shedding days to just 13 (2024: 329 days). Consequently, Eskom was able to supply electricity on 96% of the days in the reporting period.
- Recovery of previously disallowed fuel levy rebates from SARS [South African Revenue Service] provided a further boost to earnings and liquidity. After adjusting for this once-off recovery, Eskom recorded a normalised profit before tax of R11.9 billion.
- Through enhanced focus and Board oversight, improvements in audit outcomes, although not yet meeting stakeholder expectations, demonstrate action taken with approximately 90% of all external audit findings raised since FY2021 to FY2024, closed, subject to audit verification.
Lights on
Eskom board chairman Mteto Nyati reflected on the power utility’s improvement since the “crisis” the Board found three years ago.
“Eskom is increasingly a sustainable, investable company ready to compete in a liberalised, competitive energy market, and is very different from the crisis that in October 2022 the current Eskom Board inherited when they took office.
“The comprehensive diagnostic review at the time reaffirmed Eskom’s strategic direction and highlighted the need to recalibrate execution timelines and intensify delivery against strategic objectives that we have supported the Executive Committee to deliver. The Board has remained utterly focused on using public money efficiently, and early interventions in governance and controls have delivered early measurable improvements in the fight against crime, fraud and corruption.
“Vending fraud as a result of our outdated Online Vending System is now reduced to lower levels, proving that a focus on stronger systems, smarter technology, and decisive action is protecting revenue and ensuring secure, reliable electricity for all South Africans, and we will continue to intensify our focus in this area,” Nyati said.
