Tuesday, February 7 2023 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Feb 06
Week of Jan 30
Week of Jan 23
Week of Jan 16
Week of Jan 09
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Eskom’s restated 2021 loss widens to record R25bn

    November 22, 2022 - Paul Burkhardt


      -- For more stories, go to theNews24 Business front page. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Eskom restated the company's reported loss for the 2021 financial year to R25.3 billion, about 38% more than before certain accounting adjustments.

      The state-owned power provider originally reported an annual loss of 18.9 billion rand for the period through March last year, its fourth straight deficit. Eskom is struggling with operational issues that have required nationwide rolling blackouts -- known as load shedding -- and faces a debt pile of about R400 billion.

      The record loss represents another blow for Eskom, which is surviving on taxpayer bailouts. It reclassified a portion of coal inventory held at power stations from current to non-current assets and made adjustments to how it values property and equipment, according to a notice on the Johannesburg stock exchange. The changes "significantly affected the working capital ratio from 1.27 reported in the prior period to 0.95 after the restatements," it said.

      The main risk the utility faces is renewed governance and management issues, said Hilton Trollip, an energy research consultant and fellow at the University of Cape Town. "Government will have to assist Eskom finances at least at a survival level and can do that for quite a few years before the next inflection point."

      The company's results for the 2022 financial year were postponed due to a delay in appointing a new external auditor. The company also needs to resolve "numerous findings and control deficiencies emanating from the lack of compliance with well-documented policies and procedures," Eskom said. It will publish the latest results by 31 December.

      Other details:

      -- The fair value of derivatives held for risk management were restated to correct the curve methodology applied in determining the fair values of the financial instruments, which were not aligned to market practice -- A review of payment trends of defaulting municipalities accounted for on a cash basis indicated that certain trade receivables were not expected to be realized within 12 months after the reporting period -- The discount rate used in the valuation of power station-related environmental restoration and mine-related closure, pollution control and rehabilitation provisions, was corrected. 4="Oovvuu2" data-pos="middle" id="embed_18755828">


    Other Articles - Generation


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2023 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.