JOHANNESBURG, Aug 31 – South Africa’s state power utility Eskom reported its second consecutive annual profit as improved operational performance, higher electricity tariffs and tighter cost controls strengthened its financial position.
Eskom recorded profit after tax of 30.3 billion rand ($1.88 billion) for the financial year ended March 2026, more than double the restated 14.0 billion rand reported for the previous year. The earlier result marked Eskom’s first annual profit in eight years.
The financial improvement comes alongside a significant recovery in electricity supply. Power cuts, which have constrained South Africa’s economic activity for more than a decade, have become substantially less frequent as Eskom’s generation performance improves.
The utility said electricity supply interruptions occurred on only four days during the 2026 financial year, down from 13 days in the previous year. The figure represents a dramatic improvement from 2024, when South Africa experienced power cuts on 329 days.
The decline in outages is an important development for the country’s economy, where unreliable electricity supply has historically affected industrial production, business operations and household activity. A more stable power system could also reduce the operational costs faced by companies that have relied on alternative sources of electricity during periods of grid instability.
Eskom attributed its stronger financial performance to the combination of sustained operational recovery, increased tariffs and continued cost discipline. The improvement marks a notable shift for the utility after years of financial losses, operational challenges and heavy reliance on government support.
The latest results suggest that Eskom’s operational recovery is beginning to translate into a stronger balance sheet, although the utility remains central to South Africa’s broader efforts to reform the electricity sector and strengthen the reliability of power supply.
