Eskom Returns to Profitability with R23.9 Billion Pre-Tax Earnings, First in Eight Years

Johannesburg – In a historic turnaround, state-owned power utility Eskom has reported a profit before tax of R23.9 billion for the financial year ended 31 March 2025 — its first return to profitability in nearly a decade. The achievement marks a significant milestone for the company that, until recently, symbolized South Africa’s crippling energy crisis and widespread load shedding.

From Load Shedding to Stability

Eskom’s Group Chief Executive, Dan Marokane, attributed the positive results to disciplined execution of the Generation Recovery Plan, stronger coal fleet reliability, and reduced dependence on costly diesel-powered Open-Cycle Gas Turbines (OCGT).

“Over the next five years, Eskom will reinvest more than R320 billion into sustaining and expanding national infrastructure for the long-term benefit of the country,” Marokane said at the results briefing at Megawatt Park.

Key financial highlights include:

• R23.9 billion profit before tax, supported by a stronger EBITDA margin of 29.05%.
• 14% reduction in primary energy costs, leading to R16.3 billion diesel savings year-on-year.
• Load shedding slashed dramatically to 175 hours in FY2025, down from 6,367 hours in FY2024.
• Electricity supplied on 96% of the days in the reporting period.
• A normalized profit of R11.9 billion (excluding once-off SARS rebates).

According to Marokane, Eskom has now gone over 530 consecutive days without load shedding, a stark contrast to 2023, when power cuts lasted almost the entire year.

READ: City of Johannesburg to Remove Meters from Electricity Defaulters Owing R978 Million |

Restoring Confidence and Governance

Eskom Board Chairperson Mteto Nyati emphasized that the utility has evolved from being an economic risk to becoming an “investable and sustainable company.”

Nyati highlighted progress in fighting fraud and corruption, particularly reducing vending fraud through upgraded digital systems and improved governance controls.

“Three years ago, this was a company in crisis. Today, Eskom is well on its way to competing in a liberalised energy market, while still ensuring secure and affordable electricity for South Africans,” Nyati said.

Economic Impact: Billions Saved from Reduced Load Shedding

A report by the Council for Scientific and Industrial Research (CSIR) showed the devastating effect of power cuts: the South African economy lost R2.8 trillion in 2023 due to load shedding. By 2024, that figure dropped 83% to R481 billion.

The improved energy availability factor (EAF), rising from 55% to nearly 61%, played a critical role in reducing disruptions.

Modernisation: Smart Meters, EV Infrastructure and Renewables

Looking ahead, Eskom is expanding into smart meters, electric vehicle (EV) infrastructure, and accelerating its green energy projects. The completion of Kusile Unit 6 and commercialisation of Medupi Unit 4 are expected to add significant base-load capacity.

Marokane said:

“We are focused on embedding the gains of the recovery plan. With sustained progress, Eskom will not only keep the lights on but also drive South Africa’s economic growth and energy transition.”

Challenges Remain

Despite the profit, Eskom acknowledges challenges including:

• Electricity theft, estimated at 15 terawatt-hours annually.
• Environmental compliance at coal stations.
• Continued need for cost restructuring and tariff regulation.

READ: Minister of Electricity Ramokgopa Tables Bold Interventions to End Load Reduction Within 18 Months |

A Turning Point for South Africa’s Energy Future

2025 will be remembered as the year Eskom moved from crisis to credible recovery, shifting from losses of R55 billion in previous years to a R16 billion profit after tax.

For millions of South Africans and businesses alike, the results represent not only financial stability for Eskom but also a broader sense of hope for energy security, investment confidence, and economic growth.