Tear Sheet: Eskom Holding SOC Ltd.

Eskom?s 2024 performance was significantly affected by power generation shortfalls and associated high costs, largely driven by 329 days of power outages (known as load shedding) in the year. Despite a 14% revenue increase to ZAR295.8 billion, driven by an 18.65% tariff hike, sales volumes fell by 3% to 183.3TWh. Primary energy costs rose 11% to ZAR173.7 billion, largely due to the use of costly open-cycle gas turbines (OCGTs) accounting for ZAR33.9 billion of these expenses. We note the ZAR55 billion loss after tax in fiscal 2024 was mostly driven by a derecognition of deferred tax assets linked to the transfer of Eskom?s transmission assets (into Eskom?s wholly-owned subsidiary, the National Transmission Company South Africa; NTCSA). Consequently, in fiscal 2024

...February 7, 2025 After a poor operating performance in the fiscal year ended March 31, 2024, Eskom is poised for recovery in fiscal 2025 on the back of fewer operating setbacks. Eskom's 2024 performance was significantly affected by power generation shortfalls and associated high costs, largely driven by 329 days of power outages (known as load shedding) in the year. Despite a 14% revenue increase to ZAR295.8 billion, driven by an 18.65% tariff hike, sales volumes fell by 3% to 183.3TWh. Primary energy costs rose 11% to ZAR173.7 billion, largely due to the use of costly open-cycle gas turbines (OCGTs) accounting for ZAR33.9 billion of these expenses. We note the ZAR55 billion loss after tax in fiscal 2024 was mostly driven by a derecognition of deferred tax assets linked to the transfer of Eskom's transmission assets (into Eskom's wholly- owned subsidiary, the National Transmission Company South Africa; NTCSA). Consequently, in fiscal 2024 Eskom realized a S&P Global Ratings-adjusted EBITDA...

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