Transnet is four years into a seven-year plan to expand railways, pipelines and ports in Africa’s most advanced economy where growth is hovering around 2%. The state-owned firm still has room to borrow more and increase spending to boost economic growth, according to acting chief executive Siyabonga Gama.
The firm has lowered its gearing to 40% from 45.9% a year ago, said Mr Gama, adding it wanted to stay below a self-imposed limit of 50% as it invests to expand capacity.
The R24bn increase is partly due to higher costs as the rand loses value against major currencies, CFO Anoj Singh told Reuters.
Whereas the company was spending almost nothing on expansion before the seven-year plan, Transnet now channels about 45% of the investment into maintaining its existing assets and the rest to increase its capacity, said Mr Singh.
Transnet’s revenue increased 8% to R61.2bn despite sluggish economic growth. Earnings before interest, tax, depreciation and amortization grew 8.2% to R25.6bn.
FRENCH VERSION
La firme a abaissé son engrenage à 40 % de 45,9 %un an auparavant, a déclaré M. Gama, ajoutant ilvoulais rester inférieur à une limite imposée de 50 %qu’elle investit pour accroître la capacité.
L’augmentation de la R24bn est en partie en raisondes coûts plus élevés que le rand perd de valeurcontre les devises principales, CFO Floraly Singh a déclaré à Reuters.
Considérant que la société dépensait presque riensur l’élargissement avant le plan septennal, Transnetcanalise maintenant environ 45 % del’investissement dans le maintien de ses actifsexistants et le reste pour augmenter sa capacité, a dit M. Singh.
Recettes de Transnet a augmenté de 8 % à R61.2bnmalgré une croissance économique anémique. Lebénéfice avant intérêts, impôts, dépréciation etamortissement a augmenté de 8,2 % à R25.6bn
