Energy expert Tshepo Kgadima said Eskom is no longer a going concern, and its true loss for the 2023 financial year is over R70 billion.
Kgadima is an investment banking professional and company director with over 25 years of experience in energy, natural resources, and fintech.
Speaking to SABC News, Kgadima said, “For the financial year ended March 2023, Eskom will have to report a loss of at least R70 billion.”
Last month, Eskom published its interim results for the six months ending 30 September 2022, which showed a deteriorating financial performance.
Eskom’s revenue increased to R144.84 billion. However, earnings before interest, taxation, depreciation, and amortisation (EBITDA) were lower at R37.96 billion.
Higher depreciation and amortisation expenses and higher finance costs saw profit for the six months decline 64% from R10.6 billion to R3.84 billion.
Eskom said its projected net loss before tax for the 2023 financial year is currently estimated at R32.4 billion.
Kgadima disputed this figure, saying the power utility’s true loss for the full-year 2023 is at least R70 billion.
“I know Eskom said its annual loss will be around R32 billion, but I can tell you that it is at least R70 billion,” he said.
“There are a number of decisions on the accounting and auditing side which they have delayed taking, which will show that Eskom is no longer a going concern.”
“There is no appreciation from the government, Treasury, or within Eskom that they need fresh capital in the core operations of Eskom for it to continue to exist.”