South Africa’s state-owned power utility, Eskom, posted a profit after tax of 24.3 billion rand ($1.42 billion) for the six months ending September 2025.
This represents a 37% increase compared with the same period last year, reflecting ongoing financial recovery and improved operational performance.
In a statement on Friday, the company said the strong half-year result reflects continued gains from better operations across its electricity generation fleet.
The utility noted that it is a major turnaround in the performance of coal-fired power stations as a key driver of the profit increase.
Eskom reported that power cuts occurred on only four days over six months, a substantial drop from the frequent load shedding that has long affected households and businesses.
The half-year performance builds on the full 2025 financial year results, announced in September, when the utility returned to profitability for the first time in eight years.
The recovery was supported by a 12.74% electricity tariff increase, a 14% drop in primary energy costs, and operational reforms that reduced diesel usage and improved plant availability.
Recent reports show that generation fleet reliability, measured by the Energy Availability Factor, has risen, with the month-to-date EAF exceeding 70 percent, a significant improvement over the previous year.
These operational gains have sharply reduced the need for costly backup diesel generation, easing supply constraints and lowering operational expenses.
A history of financial strain
Moreover, Eskom has faced frequent pressure for much of the past decade where load shedding disrupted daily life, affected businesses, and weighed investor confidence.
The utility recorded significant financial strain in recent years, including a 55 billion rand ($ 3.2 billion) after tax loss in the 2023 to 2024 financial year.
The period saw widespread public frustration as rolling outages slowed economic activity and led to repeated government bailouts.
The company also faced challenges from governance issues, mounting debt, and the high cost of relying on emergency diesel powered generation.
After implementing a comprehensive turnaround plan, Eskom has reported improvements in operations and financial performance.
The plan focuses on better maintenance, stricter cost control, diesel displacement, tariff restructuring, and stronger governance measures.
The business group said the reduction in load shedding was not solely the result of higher tariffs.
They added that improvements were driven by substantial operational changes across the utility.
Other developments
Alongside Eskom’s recovery, South Africa is advancing energy sector reforms. Government and private partners are expanding clean energy infrastructure.
Projects included battery storage installations and increased renewable integration to improve grid resilience and support long term sustainability.
Eskom’s “Generation Recovery Plan” continues to progress. It includes upgrades to generation plants, a rollback of diesel dependence, the installation of smart meters, and efforts to reduce electricity theft and illegal connections.
Eskom’s $1.42 billion profit in the first half of 2025, a 37% year-on-year increase, represents a major milestone.
It signals more than a financial rebound.
It also suggests a potential turning point for South Africa’s electricity supply stability, economic resilience, and energy future.
