Transnet announces 2.9% increase in revenue to R38.7 billion
IOL - COMPANIES / 11 NOVEMBER 2019 - 15:12 / SIZWE DLAMINI
CAPE TOWN – Transnet – the state-owned rail, port and pipeline company – announced on Monday that it revenue increased by 2.9 percent to R38.7 billion, for the year, supported by a 3 percent increase in export iron ore volumes and a 1.6 percent increase in petroleum volumes.
The company said in a statement that operational performance during the period under review was mixed with areas where performance exceeded expectations and areas where, due to various challenges in the port environment and general freight rail sector, performance was below expectations.
Transnet announced on Monday that it revenue increased by 2.9 percent to R38.7 billion, for the year. Photo: Motshwari Mofokeng/African News Agency (ANA)
Operating costs increased by 1.2 percent to R21.2 billion, earnings before interest, tax depreciation and armotisation (Ebitda) increased by 5.1 percent to R17.5 billion. Profit for the year increased by 3.5 percent to R2.9 billion.
“Transnet has hosted numerous integrated customer and industry engagements to better understand customer requirements and to discern where the company is not measuring up. Constructive outcomes of the engagements include the conclusion of long-term take-or-pay contracts as well as the signing of an internal Transnet Customer Charter to drive a customer-centric culture in the company,” the company said.
Transnet continues to invest in the country’s vision of creating an industrialised generation by recording a total recognised broad-based black economic empowerment (B-BBEE) spend of R14.7 billion, according to the statement. R7.21 billion was spent on black-owned enterprises, with black youth enterprise spend accounting for R251 million.
Transnet spent R214 million on its nationwide corporate social investment programmes.
The company said, regrettably, 57 members of the public lost their lives in and around Transnet’s operational activities during the year, due mainly to the encroachment of the rail reserve by communities close to railway lines.
The Transnet Board of Directors and management convey their deepest condolences to the families, friends and colleagues of the employees and members of the public who lost their lives.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER