Transnet increases profits despite downturn

This was on the back of an 11.6% increase in revenue to R33.6bn (US$ 4.3bn) despite tough trading conditions in the second half of the financial year. Earnings before interest, taxation, depreciation and amortisation (EBITDA), rose 3.0% to R13.2bn (US$1.7bn), resulting in an EBITDA margin of 39.3% (2008: 42.6%).

Mr Chris Wells, the acting group chief executive at Transnet, attributed the performance to a combination of factors mainly – the negative impact on volumes caused by the global downturn which was offset by productivity improvements and cost containment.

Wells also reiterated that the company would proceed, as planned, with its infrastructure investment programme of R80.5bn (US$10.4bn) over the next five years despite the current recessionary conditions and the uncertainty regarding the period of recovery.