State-owned logistics group Transnet says its financial performance for the six months ended September 30 was positive, driven by increased volumes across the business, resulting in increased revenue, earnings before interest, taxes, depreciation and amortisation (Ebitda) and a reduced loss for the period.

Revenue increased by 8.8% to R45.2-billion, reflecting higher rail, container and petroleum volumes, as well as weighted average tariff increases in the port and pipeline businesses.

Theft, vandalism and security incidents remain a challenge, which Transnet says it will continue to address in collaboration with law enforcement agencies.

Ebitda increased by 15.4% to R15.7-billion, with the Ebitda margin rising to 34.8% compared with the prior period of 33.,8%), owing to improved volumes.

Performance improvements were also evident in rail  tonnage throughput, with September recording a yearly high of 14.8-million tonnes, the best monthly performance since the 2022 financial year, despite the yearly maintenance shutdown affecting manganese volumes.

This contributed to  a 17.7% reduction in the reported net loss of R1.8-billion, down from R2.2-billion.

Cash generated from operations after working capital changes decreased by 30.7% to R9.6-billion, from R13.8-billion owing 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 to sustain and expand operations reached R11-billion, up 5% compared with the prior year. Of this, 18.3% was directed to capacity expansion and 81.7% to maintaining current infrastructure.

Rail volume performance showed sustained improvement, increasing 4.4% to 81.4-million tonnes, from 78-million tonnes.

Net finance costs increased by 7.7% to R7.7-billion from R7.1-billion, resulting mainly from the increase in total debt compared to the prior period.

OUTLOOK

Transnet says its volume performance has been on an upward trajectory since the 2024 financial year and that it will continue to leverage private sector participation (PSP) to improve efficiencies and fund capital investment requirements.

“Transnet remains committed to its role in supporting South Africa’s economic recovery and is focused on delivering efficient, world-class logistics services for the benefit of the country,” the entity avers.

Projects aimed at improving rolling stock availability and the rail infrastructure condition will be prioritised, alongside continued efficiency improvements. The acquisition of key port equipment has also gained significant momentum, contributing to notable performance improvements within the port business.

The board and management continue to implement the Reinvent for Growth Strategy, and direct significant focus on resolving operational challenges to ensure that the tangible gains made thus far are translated into sustainable profitability, Transnet adds.