LONDON: Transnet on Thursday reported a rise in interim revenues, driven by higher volumes at ports, particularly in the bulk and break-bulk sectors.
In the six months ended September 2015, revenue rose 6.4% to R32.2bn. The company said this had been achieved despite a sharp downturn in global and domestic economic activity had hampered its major customers.
“The company bore the full impact of muted global economic activity on several of its lines, including export coal … as mines reduced demand for trains. The biggest decline was in steel and cement, also on the back of lower prices, which culminated in the business rescue effort of one of our biggest customers in the sector.
“To mitigate the impact of declining volumes on revenue, freight rail prioritised high-yield commodities. The company’s focus on managing costs, which included a significant reduction in discretionary and nonessential spend, yielded a R3.1bn saving in planned costs. The efforts limited the increase in operating costs to 4.6% across the company, matching inflation, despite higher personnel and electricity costs,” the company said.
Earnings before interest, taxation, depreciation and amortisation (ebitda) — Transnet’s key measure of profitability — increased by 9% to R13.9bn.
Looking ahead, the company said it would continue to spend on infrastructure.
