Staff Writer
South Africa’s state-owned logistics company, Transnet, has reported improved financial and operational performance for the six months ended September 30, 2025, supported by higher volumes across its rail, port, and pipeline operations.
Revenue for the interim period rose by 8.8% to N$45.2 billion, from N$41.5 billion in the same period last year. Earnings before interest, taxes, depreciation, and amortisation increased by 15.4% to N$15.7 billion. The loss for the period narrowed to N$1.8 billion from N$2.2 billion in 2024, a 17.7% year-on-year improvement.
Transnet said the improved results were driven by higher volumes across the business. Rail volumes increased by 4.4% to 81.4 million tonnes, up from 78 million tonnes in the prior period. September 2025 recorded a throughput of 14.8 million tonnes, the highest monthly performance since the 2022 financial year, despite an annual maintenance shutdown that affected manganese volumes.
Cash generated from operations after working capital changes declined by 30.7% to N$9.6 billion from N$13.8 billion. The company attributed the decrease mainly to the settlement of the Total and Sasol claim. Gearing stood at 51.9%, while rolling cash interest cover, including working capital changes, was 1.5 times.
Capital investment for the period amounted to N$11 billion, a 5% increase compared to the prior year. Of this amount, 18.3% was allocated to capacity expansion, while 81.7% was spent on maintaining existing assets.
The EBITDA margin improved to 34.8% from 32.8% in the prior period, reflecting higher volumes. Net finance costs rose by 7.7% to N$7.7 billion, mainly due to higher total debt levels.
Transnet said theft, vandalism and security-related incidents continued to disrupt operations but noted that it is working closely with law enforcement agencies to address these challenges.
Looking ahead, the company said volume performance has shown an upward trend since the 2024 financial year. Transnet plans to increase private sector participation to improve efficiency and fund capital investment while supporting South Africa’s economic recovery.
The company said priority will be given to projects that improve rolling stock availability and rail infrastructure conditions. Ongoing investment in port equipment will also continue, with these upgrades already contributing to improved port performance.
Transnet said the board and management remain focused on implementing the Reinvent for Growth Strategy, aimed at resolving operational challenges and turning recent gains into sustainable profitability.
Caption
Transnet said the positive financial results were driven by increased volumes.
- Photo: Contributed
