Transnet swings from over R8bn FY loss to a R5bn profit

Group also secures first unqualified audit in four years.
Transnet's revenue increased 1.8% to R68.5 billion for its 2022 financial year. Image: Waldo Swiegers/Bloomberg

State-owned ports and rail logistics monopoly Transnet has posted a recovery from the Covid-19 financial fallout, reporting a R5 billion profit for its full-year ended 31 March 2022.

This means it has seen a swing of some R13 billion, from a more than R8 billion loss for FY 2021, back to a profit position. However, the improved performance was largely off the back of an R11 billion upward valuation of its investment (commercial) property portfolio.

Read:
Transnet sees green shoots despite another challenging year
Transnet’s record R8.4bn loss for Covid-hit financial year

From an operational level, revenue increased by a modest 1.8% to R68.5 billion.

This is almost R7 billion less than its pre-pandemic full-year revenue level of R75.1 billion for its financial year ended March 2020.

“The significant increase in profits is mainly attributable to the improvement in the Ebitda, a decrease in asset impairments and an increase in fair value adjustments related mainly to investment property,” the group noted in a JSE Sens statement to bondholders.

Read: Transnet posts revenue increase, profit [Oct 2020]

The group also trumpeted at the release of its latest results on Wednesday that it has secured its first unqualified audit in four years.

Financial highlights:

  • Revenue increased 1.8% to R68.5 billion;
  • Ebitda (Earnings before interest, taxation, depreciation and amortisation) improved
    by 20.5% to R23.4 billion;
  • Profit for the year is R5 billion from a loss of R8. 7 billion in the prior year.
  • Cash generated from operations after working capital changes increased by 18.1% to R29.1 billion; and
  • Gearing and cash interest cover are within debt covenant requirements.

Listen: CEO Portia Derby on Transnet’s full year results

COMMENTS   4

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

Just in time for the next looting spree !!

Just to put things into perspective:

“Transnet has a $1-billion international bond that matures next month, but currently does not have sufficient funds to repay bondholders. Transnet only had around R1.3-billion of cash on its balance sheet, and will need to pay bondholders R23.5-billion as more bonds mature until March 2023.” Engineering News 9 June 2022

Currently a billion US Dollars is SA Rand R16,8 billion.

On the nail, Beachcomber, and they have just declared Force Majeur on some huge Rail contracts,so if they cannot fulfill where is the revenue coming from!!?? I’m calling more Smoke and Mirrors as you’ve highlighted.

Journal entries are an amazing thing

Any report on any company should be reporting operating cashflow performance per share over time.

Headline earnings is the stuff of fairy dust and hired help opinions

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: