Particle.news
Download on the App Store

Eskom Returns to Profit and Unveils R320 Billion Investment Plan

Government vows to end bailouts, forcing a shift to market funding.

Overview

  • Eskom posted an after-tax profit of R16 billion for FY2025, its first in eight years, reversing a R55 billion loss a year earlier.
  • The utility plans to invest more than R320 billion over five years to sustain and expand its infrastructure, with profits reinvested and a planned return to capital markets by FY28 while capping net borrowings at about R25 billion annually.
  • Operational performance improved, with an electricity availability factor near 70% and 310 consecutive days without load-shedding, driving diesel savings of R16.3 billion.
  • Officials said no further bailouts or new guarantees will be provided, even as prior debt-relief support and a 12.74% tariff increase aided the turnaround.
  • Risks remain, including a qualified audit opinion and ‘material uncertainty’ over going-concern status, compounded by municipal arrears of R94.6 billion as of 31 March 2025.