Revenue for the period increased to R3.2 billion (R3.1 billion) whilst gross loss widened to R945.6 million (loss of R749.7 million). Operating loss narrowed to R989.7 million (loss of R1.2 billion). Loss attributable to equity holders came to R1.3 billion (loss of R1.7 billion). Furthermore, headline loss per share came to 3.66cps (loss of 6.12cps).
The group’s policy is for the board of directors to consider a dividend on an annual basis after reviewing the annual results. No dividend is recommended.
Opportunities for the group’s various power businesses continue to be driven by the substantial demographic growth and mega-cities build along with the implementation of new major infrastructure projects across the continent. Significant growth is expected in the development of renewable energy and off-grid industrial-scale opportunities in Africa.
The group’s offering of complete power solution, from development, build, operate and then ultimately revenue collection remains a differentiator. This positions the group to benefit from the expected growth in power demand in the medium and long term. The South African markets remains difficult to predict. It suffers with an aging power grid as well as an old generation fleet that requires closure, and consequently, a significant potential generation shortfall exists. The group is well positioned as the leading provider of electrification of wind projects and turnkey developer of substation solutions, to benefit over the medium to long term. In the short-term though uncertainty remains with regards to the Eskom’s strategic direction, the municipalities ability to execute and the level of industrial development that will be executed.
A key challenge in South Africa and the African continent is the collection of electricity revenue billed. The group’s business Conlog is a leading provider of prepaid electricity meters and has a proven track record in providing pre-payment solutions. Consequently, we expect strong growth from this business. The group has had notable success in the development of the power projects in which it retains partial ownership. Management remains focused on the long-term strategy of establishing a sustainable platform supplying power needs across Africa.