Eskom makes a large profit

Profit they should use to maintain their infrastructure and not wasteful bonuses.

They should give back the money the government handed over to them.

And can they justify price increases next year if they are still making huge profits?
 
The net profit after tax for the group for the year was R3.6 billion, although down from a 2014 total of R7.1 billion.
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Begs the question - does Eskom exist as a revenue stream for government or is it a power supply service?

Confused?
 
I'm not sure I know how to respond to this... R3,6Bn profit? Really? You're looking for a 16% increase in fees but you're posting nearly R4Bn in PROFIT? Really? Load shedding only cost you 0,3% of total sales? Really? How much has it cost the country dimwits?

*spits
 
Remember that their profits needs to be re-invested and funds future capex projects (like power stations). If they don't make a profit, then they either have to borrow money (and pay interest in that as a junk-bond company) or the taxpayers fund them.
 
What should be noted is that all that profit goes back into paying off loans, and the likes. It doesn't go and sit in a pocket.
 
froot said:
What should be noted is that all that profit goes back into paying off loans, and the likes. It doesn't go and sit in a pocket.
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Erm... Shouldn't those loan repayments be on a balance sheet somewhere... before... posting a profit.
 
Ma se p**s Eishkom


And they have the gall to ask for more money...

Just for this I am going to turn on my stove today at lunchtime, and leave it on until tomorrow morning...
 
Sonic2k said:
Ma se p**s Eishkom


And they have the gall to ask for more money...

Just for this I am going to turn on my stove today at lunchtime, and leave it on until tomorrow morning...
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Well that's what they want you to do, use more electricity so that you can buy more from them.
 
Their net profit is down resulting in rating adjustments (as well as a few other major factors and indicators affecting this), meaning their cost of capital is higher, which translates into higher costs to produce electricity. If they made no profit they'd never receive funding in the bond market and we'd have all risk offloaded to the tax-man for capital acquisition, resulting in even higher costs. Not sure why there's hoo-hah about this...
 
R13... said:
Yes unless it's PBIT which is unlikely, the problem is they have a huge funding shortfall.
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Don't think it is either. On the shortfall, they've declared around R10,7Bn profit in the last 24 months, they just got R4Bn from Germany, IIRC, Government converted a R60Bn loan into equity and they're still in deep trouble. Words. I really have none.
 
Would some of this profit not go to their shareholder (the government) as a dividend. Just wondering since they are a public company with 100% government shareholding.
 
quite a remarkable organisation.

can only be one of a few in the world that actively discourages it's customers from using the product it sells, going to the extent of cutting the supply of it's product to willing buyers, and yet still turn a profit
 
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