Transnet reports R7 billion loss

Transnet has reported increased losses of up to R7 billion for the current year from R5.1 billion reported last year.

The state-owned freight rail and port company says its losses were exacerbated by litigation costs including a R4.8 billion Total and Sasol third party claim.

 

#TransnetResults2024 | Revenue grew by 11.6%, however we recorded a net loss of R7.3 billion, primarily due to a provision for litigation costs. Despite challenges, we are on a path to financial stability. #FinancialPerformance pic.twitter.com/SOibiimgPl

— Transnet SOC Ltd (@follow_transnet) September 2, 2024

It followed a court ruling around overcharging in Transnet’s pipelines business. Transnet did, however, manage to achieve an 11% improvement in revenue due to a slightly improved performance in rail volumes.

Transnet board chairperson Andile Sangqu was speaking at the results presentation for the full year ended March 2024 in Kempton Park.

“We’ve made some marginal improvements in the performance which have resulted in a slight improvement in the loss position compared to last year. We have had to make some provision given the Natref matter which is currently subject to court processes. This is the reason for the higher figure you will see presented when Michelle and Nosipho provide a more detailed update on the performance on the period under review. We have seen a marginal improvement in rail volumes as a result of the recovery plan initiatives, ending there at 151-million-tons compared to 141-million-tons in the previous reporting period.”

 

#TransnetResults2024 | Our Recovery Plan has led to a notable recovery in rail volumes, with the Coal Corridor exceeding baseline targets by 9%. Cash generated from operations after working capital changes also increased by 13,6% in the year, at R28,8bn, up from R21,8bn at the… pic.twitter.com/jqlODx0TpR

— Transnet SOC Ltd (@follow_transnet) September 2, 2024