Transnet books R2.2bn interim loss as operating expenses rise

TRANSNET, South Africa’s state-owned ports and rail company, posted an interim R2.2bn loss for the six months ended September, R600m worse than in the previous financial year.Despite tariff-driven revenue increase, and a 3.2% increase in rail volumes, the company’s financial problems deepened. This was owing to a 10.2% increase in net operating expenses to R27.9bn, according to a report by BusinessLive on Tuesday.Personnel costs, security incidents, fuel and electricity tariff increases, maintenance and “material cost increases” that were mostly attributed to locomotives and wagons were blamed for the cost increases, the publication said.Transnet’s biggest concern is its balance sheet, however.Net finance costs increased by 7.9% to R7.1bn (2023: R6.6bn) due mainly to interest rate hikes and increase in total debt compared to the prior period, Transnet said. The company spent R13bn servicing debt and repaying capital. Gearing stood at 48%.Commenting on company prospects, Michelle Phillips, CEO of Transnet, said the company had made progress on improving its services. “While significant work remains, particularly in areas including debt management and security, the ongoing reforms and leadership stability provide a strong foundation for continued recovery and long-term sustainability,” she said in comments to the published numbers.Coal exporter, Thungela Resources said in December it would deliver an above-forecast increase in export sales from South Africa in its financial year to end-December, largely due to an earlier-than-expected improvement in Transnet.Deon Smith, Thungela’s CFO, said the company would export 12.5 million tons of coal from the country in 2024 compared to 11.9Mt in 2023.The post Transnet books R2.2bn interim loss as operating expenses rise appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com