Transnet slashes losses to R1.9bn

State-owned and run ports, rail, and fuel pipelines monopoly Transnet managed to significantly reduce its annual losses for the 2025 financial year to the end of March, narrowing losses to R1.9 billion compared to R7.2 billion in FY2024.

This comes on the back of a strong recovery in the Transnet Freight Rail (TFR) business unit, which moved over 10 million tons more in rail volumes for the year, Group CFO Nosipho Maphumulo highlighted at a results presentation on Friday at the JSE.

Read: Transnet to issue request for proposals for private rail partners soon

Maphumulo said revenue for the financial year increased 7.8%, but the big financial feat is on the Ebitda (Earnings before interest, taxation, depreciation and amortisation) front, which surged 39.4% to R30.6 billion.

Financial highlights:

• Revenue increased to R82.7 billion, up 7.8%
• Ebitda, up 39.4%
• Loss for the year improved by 74%, to R1.9 billion
• Cash generated from operations after working capital changes decreased by 0.6% to R28,6 billion
• Capital investment increased by 44.2% to R24 billion
• Rolling cash interest cover (including working capital changes) is 18 times
• Gearing at 49.6%, is within debt covenant requirements of <60%.

But Transnet’s debt levels still weigh on the group’s overall financial position. The debt-laden group got a rating downgrade from S&P Global Ratings in July and a ratings warning from Moody’s in May, when the agency placed the group on review for downgrade. However, that was before National Treasury announced further state support in the form of more government guarantees to the tune of almost R95 billion in late July.

Read/listen:
Transnet bailouts? Government bends with R94.8bn more in guarantees –
S&P downgrade exposes Transnet’s operational crisis
Transnet credit rating slashed as cash burn continues
Transnet reports losses, makes over R4.7bn in provisions for Sasol-Total case –
Transnet’s revival and its economic impact

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