Eskom improves loss to R18.9 billion

chrisc

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Only in business can you have 2 opposite outcomes used in the same sentence and its even more hilarious when it comes to SOEs.

"Eskom increase profits but makes a loss." , this is why it is hard to take businesses serious. You either make a profit or a loss, both cannot be true but since these idiots operate on tax payer cashflow it makes no difference showing a loss or a profit, it is always profit.

We should all just do what Eskom is doing and take all the cash we can pull together and go lose it at the casino. When we lost it all we should head to the cashier and cashout our loss for a profit, Eskom style.
You don’t understand basic acounting practice. The article was quite clear and differentiated between operational profit and debt servicing. I doubt they are idiots

The last paragraph is nonsense
 

John Tempus

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You don’t understand basic acounting practice. The article was quite clear and differentiated between operational profit and debt servicing. I doubt they are idiots

The last paragraph is nonsense

I understand basic accounting just fine.

Eskom is operating at an overall loss when accounting for debt.

They are making a profit on sales but combining that with debt repayments their overall income is NEGATIVE. Did you bother to think for a second that their sales profit increases have no way in hell to ever get them out of the debt trap they are in. Eskom do not have the clients willing to pay nor the means to produce enough electricity for millions more to use. This is a joke article that tries to shine light on Eskom improving yet its far from reality.

If I have an income of R100k a month from my job but I have R150k in credit debt I have to repay each month, I am not turning a profit and this is the situation Eskom is still seeing. At best they reduced their debt repayments but their books still show negative month after month.

I couldn't care less what the article may or may not have gotten right. The idea that a business could overall still run billions in the negative but then have an article state they are turning higher profit is laughable.

Go back to accounting101 before you try and comment on something you clearly have zero clue about.
 

hj007

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Who are the debt holders? Despite ebitda<interest I think the debt holders are keeping this Zombie alive.
 

Priapus

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You lot.. ever get tired of all that negativity?
My takeaway from that article is that there are improvements happening at Eskom. However small. They are happening. I’ll take that over the Zuma era where Eskom just went backwards and did not do a single thing right or even an ounce of improvement.

Rome wasn’t built in a day and Eskom’s. issues won’t be resolved overnight. But you have to lay the first brick to rebuild a broken house…
 

RonSwanson

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The company also contained employee costs by reducing its headcount by 2,023 (4.5%) to 42,749.
Phenomenal win despite active "worker" unions. More of this. The sooner the better.
 
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John Tempus

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You lot.. ever get tired of all that negativity?
My takeaway from that article is that there are improvements happening at Eskom. However small. They are happening. I’ll take that over the Zuma era where Eskom just went backwards and did not do a single thing right or even an ounce of improvement.

Rome wasn’t built in a day and Eskom’s. issues won’t be resolved overnight. But you have to lay the first brick to rebuild a broken house…

BS Propaganda engine spewing positive vibes is the only thing that improved.

Eskom right now is producing less power than last year, all the way back to 2008. Lets just ignore that fact.

Eskom pricing went up over 400% since 2008. Another massive good vibes story for the country.

Eskom is having record unscheduled breakdowns/failures since the new CEO. Hey good vibes articles solves this problem right ?

The point of the article is also not even a good result, ESKOM sales recovery is not due to more sales but excessive cost introduced screwing over the few who were already paying for the same service. ESKOM debt is going nowhere without tax payer bailouts or a complete overhaul of Eskom operations (wont ever happen with ANC in charge).

If you like to just feel good inside even though reality is more dire each year well could I suggest pornhub or something more based in reality.

To go with your analogy the reality is that Eskom right now is fixing one brick while losing 2 bricks, this is still ongoing and nothing changed on that front.

Good vibes fart sniffing is why SA is in the complete mess it is in. Apathy from citizens and good vibes articles getting responses like yours based on unicorns is getting us nowhere quickly.
 

Swa

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So how does the R100bn reduction in debt factor into this?
 

Unreal

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Only in business can you have 2 opposite outcomes used in the same sentence and its even more hilarious when it comes to SOEs.

"Eskom increase profits but makes a loss." , this is why it is hard to take businesses serious. You either make a profit or a loss, both cannot be true but since these idiots operate on tax payer cashflow it makes no difference showing a loss or a profit, it is always profit.

We should all just do what Eskom is doing and take all the cash we can pull together and go lose it at the casino. When we lost it all we should head to the cashier and cashout our loss for a profit, Eskom style.
Only in journalism can you have 2 opposite outcomes used…
 

Ianf1

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Joined
Aug 5, 2007
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The headline puzzles me "improves loss" is an oxymoron which tries to convey a terrible situation in a good light. R18.9bn is one hell of a big loss and should be a concern.
My take is Eskom should be berated for the absolute loss of R18.9bn and then say there are some reasons for hope for some of the improved results like a slight increase in operating profit. But this is too slow and a lot more needs to be done.
 

TheChamp

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And yet not a single voter can tell us exactly what it was they liberated.

Bronn.png
Maybe your approach was wrong, try it again but leave out the grand European airs and massive amounts of self importance, be humble when you approach the voter.
 

krycor

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Messages
18,538
BS Propaganda engine spewing positive vibes is the only thing that improved.

Eskom right now is producing less power than last year, all the way back to 2008. Lets just ignore that fact.

Eskom pricing went up over 400% since 2008. Another massive good vibes story for the country.

Eskom is having record unscheduled breakdowns/failures since the new CEO. Hey good vibes articles solves this problem right ?

The point of the article is also not even a good result, ESKOM sales recovery is not due to more sales but excessive cost introduced screwing over the few who were already paying for the same service. ESKOM debt is going nowhere without tax payer bailouts or a complete overhaul of Eskom operations (wont ever happen with ANC in charge).

If you like to just feel good inside even though reality is more dire each year well could I suggest pornhub or something more based in reality.

To go with your analogy the reality is that Eskom right now is fixing one brick while losing 2 bricks, this is still ongoing and nothing changed on that front.

Good vibes fart sniffing is why SA is in the complete mess it is in. Apathy from citizens and good vibes articles getting responses like yours based on unicorns is getting us nowhere quickly.

True.. but you have to ask yourself.. pragmatically, what should they do in this situation.

People love bitching about what happen, how it was “back in my day” ignoring the glaring obvious issues and sweeping all the crap under the carpet to say it was awesome.

Cool.. but it does not change the situation does it. Look at the ceo.. what can he do right now?

Reminds of the many project crisis meetings I’ve gotten dragged into attending in the past, you have the okes that want to throw toys out the got until everyone acknowledges their whine or previous grievances and shutdown org till they feel better, restart everything or you have the okes who just want to see what’s needed to keep things going such that the bigger fix can happen later.

The sales profit or better put, selling electricity for > cost to produce is good because it means the input cost drama is getting solved and so they can’t go to nersa and demand price changes. Doesn’t change their debt situation nor their liabilities, committed org restructuring etc but at least they slowly addressing things.

Or should they tomorrow pull the plug and we can have a blackout till some org builds everything again including transmission network.
 

John Tempus

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True.. but you have to ask yourself.. pragmatically, what should they do in this situation.

People love bitching about what happen, how it was “back in my day” ignoring the glaring obvious issues and sweeping all the crap under the carpet to say it was awesome.

Cool.. but it does not change the situation does it. Look at the ceo.. what can he do right now?

Reminds of the many project crisis meetings I’ve gotten dragged into attending in the past, you have the okes that want to throw toys out the got until everyone acknowledges their whine or previous grievances and shutdown org till they feel better, restart everything or you have the okes who just want to see what’s needed to keep things going such that the bigger fix can happen later.

The sales profit or better put, selling electricity for > cost to produce is good because it means the input cost drama is getting solved and so they can’t go to nersa and demand price changes. Doesn’t change their debt situation nor their liabilities, committed org restructuring etc but at least they slowly addressing things.

Or should they tomorrow pull the plug and we can have a blackout till some org builds everything again including transmission network.

The only real proof that Eskom is heading in the right direction would be for Eskom to sign a binding contract that they believe in their new visionary direction enough that they will not request further price increases nor any tax bailouts as they progress to breakeven and beyond.

There is ZERO chance Eskom believe in them self to cut off those 2 primary sources that indefinitely will be used to make them look better than they really are.

If they refuse to sign off on those 2 criteria then it is time for the government to give equal value in financial support for private power companies to compete with Eskom. This is also never going to happen.

The argument of sales generating profit is absolutely reaching for the lowest hanging fruit, rotting fruit on the ground more like it. This is the bare minimum any utility should be able to do and Eskom isn't doing this in a fair manner.

Lets assume they used to be able to sell 100 units of power to 100 clients at R1 per unit and it cost them R80 to generate the 100 units (80c per unit) thus profiting R20 on this or 20% ROI. Now they are producing 50 units of power at R100 to generate the 50 units (R2 per unit), selling it to 50 people (half of previous userbase) at R4 per unit(4x the previous cost to clients) and generating R200 ie. 100% ROI, Eureka.

Suddenly it looks like Eskom is amazing, generating more profit than before , selling fewer units of power to fewer people. This is the exact opposite of a national success story and exactly what is happening right now with Eskom.

The only reality we are faced with is that Eskom is milking the dwindling power users each price increase cycle and the fact they have permanent tax payer funding to fall back on. Neither of these conditions scream "We are heading in the right direction".
 
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JohnMao

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May 21, 2018
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8,792
We are in this together and we shall overcome, together. :thumbsup:
We are in this together because people continue voting for the useless ANC, essentially condoning theft at the expense of the poor and the country.
We are in this together and the tax base is dwindling...guess where that will lead you.

We are in this together and some will overcome together. Not all considering those who have left/are leaving.
 
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