Eskom de­nies cri­sis, says all will be clear

The Star Early Edition - - COMPANIES -

STATE-OWNED power util­ity Eskom yes­ter­day de­nied me­dia reports that it was fac­ing a cash cri­sis.

Eskom said it had noted week­end me­dia reports con­cern­ing its fi­nan­cial sus­tain­abil­ity.

“Due to lim­i­ta­tions around dis­clos­ing fi­nan­cial in­for­ma­tion be­fore the of­fi­cial an­nounce­ment, which is sched­uled for Wed­nes­day, July 19, Eskom is not in a po­si­tion to re­spond com­pre­hen­sively to the spe­cific is­sues raised at this stage.

“Hav­ing said this, Eskom re­jects the no­tion that it is fac­ing a cash cri­sis and that it has only enough cash to last for the next three months,” it said.

Ex­ter­nal au­di­tors had con­firmed Eskom as a go­ing con­cern and as a re­sult the com­pany con­sid­ered these reports as be­ing in­ac­cu­rate and mis­lead­ing.

“It is im­por­tant to re­it­er­ate that Eskom is not fac­ing any liq­uid­ity chal­lenges and that the com­pany is con­fi­dent that it will main­tain suf­fi­cient liq­uid­ity to sup­port its op­er­a­tions”, it said.

While Eskom’s fi­nan­cial po­si­tion had al­ways been sup­ported by sig­nif­i­cant reliance on debt and bor­row­ings, but its im­proved over­all fi­nan­cial and oper­a­tional per­for­mance over the past two years had led to an im­proved bal­ance sheet.

Guar­an­tees

Eskom also had suf­fi­cient gov­ern­ment guar­an­tees to ex­e­cute its fund­ing plan, and had also main­tained ac­cess to cap­i­tal mar­kets and raised com­mit­ted fund­ing, Eskom said.

“As stated above, the de­tails about Eskom’s oper­a­tional and fi­nan­cial per­for­mance will be an­nounced on Wed­nes­day.

“Mem­bers of the me­dia and other key stake­hold­ers have been in­vited.

“Eskom will con­tinue to meet with a num­ber of stake­hold­ers ahead of re­leas­ing the re­sults this week,” the util­ity said.

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