South African state-owned power utility Eskom announced on Tuesday that it has recorded its first full-year profit in eight years, marking a significant turnaround for the company. The profit after tax for the year ending March 2025 was R16 billion ($927.24 million), a stark contrast to the R55 billion loss reported the previous year.
The annual report highlighted several key factors contributing to this financial success: government debt relief, revised tariff structures, increased sales linked to operational improvements, and cost optimisation initiatives.
Eskom’s ongoing power cuts have hindered South Africa’s economic growth for over a decade, and the utility has relied on repeated bailouts that have stressed state finances. However, the frequency of power outages has significantly decreased since early last year. In the latest financial year, Eskom recorded just 13 days of power cuts, a dramatic reduction from a record 329 days in the prior year.
This turnaround is seen as a promising sign for both Eskom and the South African economy, as the utility works to stabilise its operations and improve service delivery.