Africa-Press – South-Africa. Transnet has posted a profit of R5 billion for the year ended in March, recovering from a loss of R8.7 billion in 2021.
Revenue increased 1.8% to R68.5 billion for the year, while net profit after tax was R5 billion, representing an upward swing of R13 billion compared to the loss registered in the 2021 financial year.
Transnet CFO Nonkululeko Dlamini said the group was pleased to see some “green shoots” following the adverse impacts of Covid-19 in 2021.
The state-owned logistics company also received its first unqualified audit opinion from the auditor general in four years.
Dlamini said the unqualified audit opinion was a key milestone as a qualified audit opinion has, in past years, had implications for Transnet’s ability to raise funding in the market.
The improved results come despite some notable challenges faced by Transnet in the financial year ended in March.
This includes cable theft and vandalism of Transnet infrastructure, fires, looting and unrest in July, a cyberattack and severe flood damage following heavy rains in KwaZulu-Natal.
With every crisis, the company “tried to take it on the chin, pay for it and ensure on the other side of the divide we are stronger a company”, said Transnet CEO Portia Derby.
She highlighted progress within each Transnet’s businesses as the group continues to put pressure on each operating division “that you have to run a business that is strong and is able to look after itself”, she said.
The poor performance of rail, and on the coal export line in particular, remains a challenge as Transnet is still struggling to procure spares for its locomotives due to a legal battle with a Chinese supplier.
Transnet’s board chair, Popo Molefe, said Transnet is now focusing on finding innovative ways of growing its business – and taking bold steps in this aim. The company wants to excel at what it is best at, while partnering with the private sector in certain areas.
Public Enterprises Minister Pravin Gordhan applauded Transnet on its performance and said it would now need to build on this “sound foundation” in the period ahead.
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