Business 20.8.2018 03:45 pm

Transnet revenue grows 11% on high export coal volumes

Net profit for the year increased to R4.9 billion compared to R2.8 billion achieved in the previous year, a 75 percent improvement.

Transnet has reported a revenue increase of 11.3 percent to R72.9 billion for the year ended 31 March 2018, up from R65.5 billion the previous year, driven by a rise in railed export coal volumes, an increase in railed automotive, container volumes and port container volumes.

The State-owned freight and logistics company said improvements from the two businesses benefited from improved operational efficiency attributable to the deployment of new-generation locomotives on the network and continuing progress towards the road-to-rail strategy.

Earnings before interest, tax, depreciation and amortisation, the company’s key measure of profitability, improved by 18 percent to R32.5 billion compared to R27.6 billion achieved in the prior year. Net profit for the year increased to R4.9 billion compared to R2.8 billion achieved in the prior year, a 75 percent improvement over the previous year.

Transnet said it had managed to maintain a stand-alone investment grade credit rating, endorsing its solid financial credit profile despite a number of varying credit rating reports experienced by the country. The company said these results were a demonstration of resilience in its operating model.

African News Agency (ANA)

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