EEC NETS E600M PROFIT IN 12 MONTHS

MBABANE – Eswatini Electricity Company (EEC), which has applied for a 7.16 per cent tariff increase, made a net profit of E601.9 million over a period of 12 months.  

A company’s net profit is also known as its net income, net earnings or bottom line. It represents the financial standing of a company after all its expenses have been paid off from its total revenue, accountants said. In terms of the law, the Ministry of Finance’s Public Enterprises Unit (PEU) has released an income statement for EEC from June 30, 2019 to June 30, 2020, which shows a healthy financial position of the government parastatal.

Gross profit

The public enterprise’s financials show that its gross profits for the same period stood at E1.083 billion. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products or the costs associated with providing its services. Gross profit usually appears on a company’s income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales), according to investment experts. For the period ended March 31, 2020, EEC made a net profit of E132.082 million and E45.92 million during the quarter ended June 30, 2020. In the quarter that ended on December 31, 2019, the company had accumulated a net profit of E179.19 million, and another one amounting to E107.60 million was realised during the period ended September 30, 2019.

For the period ended June 2019, the financials as presented by PEU show that EEC posted a net profit of E137.14 million. The director of PEU is Busangani Mkhaliphi. Commenting on the financials for the quarter ended June 30, 2020, the PEU remarked that EEC managed to record after tax profits amounting to E45.92 million. The unit explained that the profits were realised because of savings made by EEC when it decided to purchase power from the Southern African Power Pool (SAPP) market, which tends to be cheaper than ESKOM.

Power pool

The SAPP was created in August 1995 at the Southern African Development Community (SADC) Summit held in Kempton Park, South Africa, when member governments of SADC (excluding Mauritius) signed an Inter-Governmental Memorandum of Understanding for the formation of an electricity power pool in the region under the name of the Southern African Power Pool.

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