Transnet's half-year results show a 6% revenue increase but a larger loss, highlighting ongoing challenges with security and infrastructure.
Transnet ’s half-year results show that it increased its income in the first half of last year, but also had a bigger loss that wiped out any gains. Its issues with security and infrastructure continues to slow down its recovery three years after starting to implement its latest turnaround plan. According to a Transnet statement, its revenue increased by 6.0% from R39.2 billion to R41.5 billion, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 1.
6% from R13.8 billion to R13.6 billion. However, the loss for the period was R2.2 billion compared to a loss of R1.6 billion in 2023. Cash generated from operations after working capital changes increased by 5.4% to R13.8 billion, while capital investment to sustain and expand operations was R10.5 billion and debt service of R13.1 billion was paid in capital repayments and interest. Transnet says in the statement that there was a noticeable improvement in sentiment regarding South Africa’s economic outlook. The company is of critical importance for the country’s imports and exports. According to the statement, Transnet continues to experience marginal improvements in the operating environment, particularly the increase in revenue and improved volumes in the rail business owing to the implementation of its “These improvements were achieved amid various operational challenges that continue to restrain the overall financial performance of the group. Despite the improved revenue and rail volume performance, the group posted a loss of R2.2 billion,” Transnet says. Revenue increased by 6.0% to R41.5 billion (2023: R39.2 billion), in line with weighted average tariff increases in the rail, port and pipeline businesses and a 3.2% increase in rail volumes which was partially offset by lower container and petroleum volumes. Container volumes decreased mainly due to market challenges, equipment availability and adverse weather condition
TRANSNET SOUTH AFRICA ECONOMY INFRASTRUCTURE TURNAROUND
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