South Africa's Eskom Profit Plunges 89%; Situation to Worsen

  • Situation likely to deteriorate further in second half
  • Debt burden ‘impossibly high,’ chairman says at presentation
Photographer: Waldo Swiegers/Bloomberg
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South Africa’s Eskom Holdings SOC Ltd. sees everything from finances to operations getting worse in the coming months as the struggling state-owned utility rushes to finalize a turnaround plan.

First-half profit plunged and the company’s debt burden remains “impossibly high,” Chairman Jabu Mabuza said at a briefing in Johannesburg Wednesday. “We’re not selling enough electricity’’ to recover costs, he said. “Eskom is in a state of severe financial difficulty.’’