Highlights

Revenue increased by 13,8% to R37,1 billion for the period, driven by an 11,4% increase in container and automotive railed volumes, a 7,9% increase in general freight, a record 6,5% increase in export coal railed volumes and a 6,1% increase in port container volumes.

Operating expenses increased by 10,9% to R20,8 billion, mainly due to an increase in variable costs in line with higher volumes, with resultant increases in personnel, fuel and electricity costs. This, however, represented a R2,2 billion saving against planned costs through efficiency based cost-reduction initiatives.

EBITDA increased by 17,7% to R16,3 billion, with the EBITDA margin increasing by 1,5% to 44,0%.

Net profit for the period increased by more than 230% to R3,4 billion.

Gearing is 44,0% and cash interest cover at 3,0 times are significantly within loan covenant requirements. Borrowings raised of 9,9 billion during the period, reflecting the strength of Transnet’s financial position.

Cash generated from operations increased by 17,6% to R17,2 billion reflecting the Company’s strong cash generating ability.

Capital investment of R8,9 billion, bringing expenditure during the MDS period to R153 billion.

B-BBEE spend amounted to R15,8 billion – or 87,8% of total measured procurement spend.

The Company spent 2,8% of its labour costs on training, focusing on artisans, engineers, and engineering technicians.

The Company recorded a DIFR ratio of 0,72 – on track to celebrate the seventh consecutive year of outperforming its target. However, with one fatality reported during the period, the Company continues to analyse and review its current safety approaches and efficiency, while proactively striving ‘towards zero harm.’

An estimated R104,3 million was committed to sustainable community development programmes across South Africa, with 132 033 patients treated on board the Phelophepa trains and 334 734 individuals benefitting from community outreach services.