Eskom in huge trouble as profit drops a whopping 89%

[BusinessTech]

Eskom in huge trouble as profit drops a whopping 89%

Eskom Holdings SOC Ltd’s first-half profit plunged 89% and the situation at the South African state-owned power utility is likely to worsen in the next six months, chairman Jabu Mabuza said.

 

[grok]

Is it appropriate to lol right now?

 

[SauRoNZA]

Why should an SOE be making a profit in the first place?

 

[Pineapple Smurf]

 

[RedViking]

Is it appropriate to lol right now?

They are laughing. You are gonna cry.

 

[RedViking]

 

[Fcon_Vpro]

Why should an SOE be making a profit in the first place?

If the profits are kept as reserve for future maintenance, projects, etc then I think its fine.
But if its over and above reserves then im in agreement with you.

 

[Lupus]

Only company I've ever heard of that asks us to use less electricity, when we do they make it more expensive cause profits are down, making people cut back even more and the vicious cycle continues..
Dumb asses.

 

[ToxicBunny]

Thats nice Jabu,

Don't care... you are a burden on this countries economy in your current state. We may care once you've sorted out the entity and made it efficient.

 

[LazyLion]

Another ANC success story.

 

[TheMightyQuinn]

Wait untill we sit and laugh in the dark, with only one day of electricity per week, when ESKOM finally fails....

 

[Quicks]

How about they sort out all the illegal connected connection.

 

[The_MAC]

How about they sort out all the illegal connected connection.

That's probably one of the most trickiest ones..

Eskom's problems will never go away as long as it remains a cash-cow for the cadres, because the emphasis will never be on efficiency, strategic objectives and customer service.

What do you guys think of this? Is he on to something, or are we all hoodwinked?

https://www.linkedin.com/feed/update/urn:li:ugcPost:6473123320102416384/

 

[Pitbull]

Can someone please explain to me how the fark if you keep on adding new connections to the grid, that you make less profit by 89%.

And just to be clear, they are still showing a profit, it's just 89% less than last year this time.

 

[konfab]

Can someone please explain to me how the fark if you keep on adding new connections to the grid, that you make less profit by 89%.

That is easy.
Your baas tells you to electrify {insert township here}.
The residents of {insert township here} can't/won't pay for the electricity.

 

[The_MAC]

That is easy.
Your baas tells you to electrify {insert township here}.
The residents of {insert township here} can't/won't pay for the electricity.

Also, they pay 1000% more for services/material etc. than the retail price, so that all the BEE partners can get their cut..

 

[The_Librarian]

BEE <-- the root cause of the problem

 

[Hemi300c]

Eish

 

[qscwbt]

There is a snake in the grass?

 

[Temujin]

profit plunged 89%

We now see why they said they're entitled to 90% increase

“We’re not selling enough electricity” to recover costs, he said, saying sales volumes dropped 0.8% in the period.

But, thats on you... you told people not to use it, you then increased prices so people use even less... and you forced those who can afford it to go off grid... all on you... you want more sales and more profit, cut the price, become cheap and 'attractive' again for manufacturing etc... but I'm just speaking to a brick wall... go ahead, increase prices, **** yourselves over... monopoly losing market share with no competition