Transnet has narrowed its half-year loss by nearly 18% as freight rail volumes improved.
The state-owned freight and logistics operator’s loss narrowed to R1.8bn in the six months to September 30, from a R2.2bn loss in the same period last year.
Transnet said in an interim trading statement on Friday that it moved 81.4-million tonnes of cargo during the six months, compared with 78-million tonnes previously.
“Transnet remains committed to its role in supporting South Africa’s economic recovery and is focused on delivering efficient, world-class logistics services for the benefit of the country. Projects focused on improving rolling stock availability and the rail infrastructure condition will be prioritised while building on improved efficiencies,” it said in the statement.
“The acquisition of key port equipment has gained significant momentum, contributing to notable performance improvements within the port business.
“The board and management continue to implement the Reinvent for Growth Strategy, and direct significant focus on resolving operational challenges to ensure that the tangible gains made thus far are translated into sustainable profitability,” it said.
Key highlights:
• Revenue increased by 8.8% from R41.5bn to R45.2bn.
• Earnings before interest, tax, depreciation and amortisation increased by 15.4% from R13.6bn to R15.7bn.
• The loss for the period is R1.8bn compared to a loss of R2.2bn in 2024, which is a 17.7% improvement compared to prior year.
• Cash generated from operations after working capital changes decreased by 30.7% to R9.6bn from R13.8bn due to settlement of the Total and Sasol claim.
• Gearing is at 51.9%.
• Rolling cash interest cover (including working capital changes) is 1.5 times.
• Capital investment to sustain and expand operations is R11bn an increase of 5% compared to prior year.
With Staff Writer
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