Higher depreciation and net finance costs were incurred due to new build units coming online. Revenue was 2% lower at R96-billion. Earnings before interest‚ depreciation‚ tax and amortisation amounted to R30-billion‚ down from R32-billion.
Net cash from operations of R22bn was generated‚ compared with R32-billion in the previous period‚ and liquid assets at the end of September stood at R9-billion‚ down from R30-billion.
MPs were told that 54% of Eskom’s funding requirements for the 2018 financial year had been secured. Eskom has to repay a R20-billion bridging loan by August.
Regarding Nersa’s tariff decision‚ Eskom executives said the 2.3% increase in 2017-18 and the 5.23% in 2018-19 translated into an average nominal increase over two years of 3.75%. This has had adverse effects on liquidity and Eskom’s going-concern status‚ as well as its ability to continue providing electricity.
“The financial ratios by Nersa require cost reductions of almost the entire employee costs‚” they said.