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Eskom profit falls 49%

Electricity sales fell 0.7% due to scheduled power cuts. Platinum strike cuts use by biggest producers.

Eskom Holdings said profit fell 49% after the South African utility sold less power because it struggled to meet demand, a five-month platinum strike cut use by producers, and BHP Billiton closed a smelter.

Net income was R3.62 billion ($286 million) in the 12 months ended March 31 from R7.09 billion a year earlier, the Johannesburg-based company said in a presentation handed to reporters Tuesday. Operating costs rose 13%, while primary energy expenses climbed 19% to R83 billion.

Electricity sales fell 0.7% because of scheduled power cuts, strikes at the local operations of the world’s three biggest platinum producers, a contraction in South African gold mining and BHP’s closing of its Bayside aluminum smelter, acting Chief Executive Officer Brian Molefe said.

Eskom has a 225 billion-rand funding shortfall for the five years through 2018 as it battles to supply adequate power in Africa’s most industrialised economy. The utility has imposed rolling power cuts almost every second day this year.

Eskom to see penalty from Glencore

Eskom is seeking a R2 billion ($157 million) penalty from Glencore’s Optimum Coal Mine because of the poor quality of their coal and its “shoddy performance”, its chief executive said on Tuesday.

“The quality of the coal that we get from the mines we are tied to has not been good,” Molefe said at the company’s annual results briefing.

Glencore was not immediately available to comment.

©2015 Bloomberg News

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Molefe should write a book an autobiography and maybe call it “The life of Brian” and he can cover those glorious years as head of PIC where he rammed transformation down the throats of well functioning companies. How he didn’t manage to move any more coal on his railway tracks whilst at Transnet, nor did he manage to move more road freight off our roads and onto his railway track. He can also cover his prissy months at Eskom finding every other entity to blame for Eskom’s poor performance, rather than point a finger at itself.
An whilst he is on this Eskom expose on the company he can tell us about the ridiculous salaries that are paid to morons who can’t keep the lights on, and how entities like City Power have become a totally inefficient, crass useless operation, and why they and Eskom still can’t recover funds from non paying users.
You see our friend here dear Brian is really pretty incapable of doing anything meaningful – he needs to be in positions where he can dictate to the masses how they must behave, but has no concept, or, road map on how to fix things

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