"The results for the six months to end September 2011 reflect increased net profit of R12.8 billion (which was R9.5 billion 2010), on revenue which increased to R63.9 billion (from R51.1 billion previously)," the power utility announced on Wednesday.
The growth in revenue was mainly due to higher electricity tariffs reflecting a 25.8% increase -including the environmental levy - which the National Energy Regulator (Nersa) allowed Eskom from 1 April 2011.
"We have now had two and a half years of strong financial performance. This is essential for Eskom to raise the funding it needs to invest in South Africa's future," Eskom chief executive Brian Dames said.
In the six months to September, electricity sales increased by 0.9% to 114 043GWh, reflecting muted economic growth, labour unrest (in sectors like metals and mining) and the impact of higher tariffs.
Revenue per kilowatt hour sold increased to 55.3 cents while operating costs rose to 38.2 cents.
Primary energy costs increased by 26%, which is mostly attributed to higher coal costs and Eskom's purchasing of electricity from independent power producers (IPPs). The parastatal signed up 803MW of capacity from IPPs and municipal generators in the six months. Dames said the utility was committed to the entry of IPPs into the country's electricity market.
Since 2005, Eskom has spent R141.5 billion on its build programme, which has so far added 5381MW of generation capacity to the national grid, while a R300 billion funding plan is in place for the new build programme, which will be completed in 2018/19. Over 74% of the funding has now been secured.
"Eskom's debt stood at R178 billion at end-September and is expected to increase to close to R400 billion to complete the committed build programme."
Dames said the utility was concerned about the state of the power system, pointing out that the system was under pressure.
"The system is very tight. We have been making increased use of our open cycle gas turbines (OCGTs), and we are trying to find the space to catch up on the maintenance backlog and execute the planned maintenance programme, in order to ensure a reliable electricity system."
The utility also announced that Unit 4 of the Duvha power station, which was damaged in February, was expected to be back in service in mid-2012.
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