Eskom Posts First Profit in Seven Years Amid Turnaround Push

JOHANNESBURG, September 30  – Electricity power utility,  Eskom reported a R16 billion after-tax profit for the 2025 financial year, its first positive result since 2017, crediting operational reforms and anti-corruption measures under a three-year turnaround strategy.

Chairman Mteto Nyati said the state-owned firm had evolved from a “crisis-ridden entity” inherited in 2022 into a “sustainable, investable” player preparing for energy market liberalization.

Key improvements included an 83% reduction in loadshedding-related economic losses, from R2.8 trillion in 2023 to R481 billion in 2024, according to a Council for Scientific and Industrial Research report.

Chief Executive Dan Marokane announced plans to reinvest profits into R320 billion of infrastructure upgrades over five years, targeting “single-digit tariff increases” through cost optimization.

Challenges persist, with municipal debt soaring 27% to R94.6 billion despite a national debt relief program, threatening Eskom’s distribution unit viability.

The utility received a qualified audit due to irregular expenditure records and unresolved internal control gaps, prompting a three-year Audit Recovery Programme to address legacy issues.

ANC Secretary General Fikile Mbalula welcomed the results as evidence of “strengthened financial systems” after years of instability.

Eskom executives emphasized ongoing engagement with regulators to establish predictable tariff frameworks, critical for attracting investment in South Africa’s evolving energy sector.