Eskom Reports R16 Billion Profit: South Africa’s Energy Giant Ends Years of Losses with Strong Turnaround

Eskom, South Africa’s dominant state power utility, announced a striking financial recovery for the fiscal year ending March 2025, posting an after-tax profit of R16 billion ($927 million), its first in eight years. This turnaround from a staggering R55 billion loss the previous year signals renewed stability in the country’s critical energy sector.

Key to this success has been Eskom’s rigorous debt relief plan launched in 2023 and operational efficiencies that boosted its EBITDA margin to 29.05%. A 12.74% tariff hike approved by the National Energy Regulator of South Africa (NERSA) alongside a 14% drop in primary energy costs—mainly through improved coal plant reliability and slashing reliance on expensive Open-Cycle Gas Turbines—saved the utility R16.3 billion in diesel fuel expenses.

Eskom also drastically reduced load shedding from a debilitating 329 days in 2024 to just 13 in 2025, restoring power supply for 96% of the year compared to a mere 9% previously. This improvement is critical in reversing the estimated R2.8 trillion economic loss caused by power outages in 2023 and regaining investor confidence.

CEO Dan Marokane outlined aggressive plans to reinvest R320 billion over five years toward renewing infrastructure, enhancing procurement, and driving digital transformation through the CORE programme. Despite progress, Eskom faces ongoing challenges including audit qualification issues related to record-keeping and mounting municipal debt arrears threatening financial sustainability and regulatory reform.

This breakthrough profit firmly positions Eskom as a turnaround case study in Africa’s energy sector, highlighting a path toward sustainable power supply and economic resilience in South Africa.

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