State-owned ports and rail logistics monopoly Transnet has posted a recovery from the Covid-19 financial fallout, reporting a R5 billion profit for its full-year ended 31 March 2022.
This means it has seen a swing of some R13 billion, from a more than R8 billion loss for FY 2021, back to a profit position. However, the improved performance was largely off the back of an R11 billion upward valuation of its investment (commercial) property portfolio.
From an operational level, revenue increased by a modest 1.8% to R68.5 billion. This is almost R7 billion less than its pre-pandemic full-year revenue level of R75.1 billion for its financial year ended March 2020.
“The significant increase in profits is mainly attributable to the improvement in the Ebitda, a decrease in asset impairments and an increase in fair value adjustments related mainly to investment property,” the group noted in a JSE Sens statement to bondholders.
The group also trumpeted at the release of its latest results on Wednesday that it has secured its first unqualified audit in four years.
Financial highlights:
- Revenue increased 1.8% to R68.5 billion;
- Ebitda (Earnings before interest, taxation, depreciation and amortisation) improved
by 20.5% to R23.4 billion; - Profit for the year is R5 billion from a loss of R8. 7 billion in the prior year.
- Cash generated from operations after working capital changes increased by 18.1% to R29.1 billion; and
- Gearing and cash interest cover are within debt covenant requirements.
Source: News24
