Business
Eskom Reports R16 Billion Profit: A Shocking Turnaround After Years of Losses
From red ink to black
For the first time in almost a decade, Eskom has turned a profit. The power utility has announced a R16 billion profit after tax for the year ending March 2025, a stunning recovery from a R55 billion loss the year before. This marks the group’s first return to profitability since 2017 and offers a glimmer of stability in South Africa’s long-running electricity crisis.
The swing in Eskom’s fortunes comes on the back of deep cost cuts, lower spending on open-cycle gas turbines and a stronger operational performance. The utility posted R23.9 billion in profit before tax, compared to a R25.5 billion loss in 2024. Its EBITDA margin nearly doubled, helped by a 12.74% tariff hike and a 14% drop in primary energy costs.
A dramatic fall in load shedding
Perhaps the most surprising part of the story is Eskom’s delivery of electricity supply. Load shedding, which had crippled the economy in 2023 and 2024, dropped significantly. The utility reported that power interruptions fell to just 175 hours across 13 days in the reporting year, compared to 6,367 hours across 329 days in 2024. In other words, South Africans had electricity available on 96% of the days in 2025, a radical improvement from just 9% the year before.
Independent analysis by the CSIR backs up the impact of this turnaround. South Africa’s economy lost up to R2.8 trillion due to load shedding in 2023, but that figure fell to R481 billion in 2024, an 83% improvement.
The CEO’s message
Eskom’s chief executive, Dan Marokane, stressed that the profit will not simply sit on the books. The company plans to reinvest over R320 billion in infrastructure over the next five years, upgrading generation and distribution networks to secure reliable electricity for the country. “Eskom’s stability and performance are vital to South Africa’s growth and job creation,” Marokane said, underlining the link between electricity and economic recovery.
Clouds on the horizon
Despite the celebration, Eskom admitted its challenges are far from over. Municipal arrear debt continues to climb, now sitting at R94.6 billion, up 27% from R74.4 billion the year before. The National Treasury’s municipal debt relief programme has not curbed the growth, as many municipalities still fail to pay current accounts on time. Eskom warned that this debt threatens the viability of its distribution arm and complicates the legal separation process underway.
Eskom also received a qualified audit opinion for 2025. Incomplete or poorly maintained records relating to irregular expenditure and criminal losses meant it fell short of legislative requirements under the Public Finance Management Act. Internal control weaknesses were flagged once again, showing the clean-up is still a work in progress.
What comes next
Eskom is pushing ahead with restructuring efforts, cutting costs further and preparing for future tariff increases expected to remain in single digits. The utility has set up investigation units, hired more finance professionals and signed new distribution agreements to help municipalities improve revenue collection.
For ordinary South Africans, the headline news is clear: fewer blackouts and a more stable Eskom are finally within reach. But with massive municipal debt, governance issues and a reliance on government support still weighing heavily, the country’s most important company is not out of the woods yet. The next few years will determine whether this profit is the start of a sustained recovery or a brief reprieve.
Also read: Petrol Price Shift for October 2025: What South Africans Will Pay at the Pumps
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Source: Business Tech
Featured Image: The Banking Association South Africa
