S.Africa's Transnet reports wider loss after pipeline lawsuit provision (updated)

Sasol

02/09/2024 09:39

(Adds details on lawsuit and volume performance from paragraph
4)
       JOHANNESBURG, Sept 2 (Reuters) - South African
state-owned logistics group Transnet made a larger loss of 7.3
billion rand ($408.72 million) in the year to the end of March
2024, widening losses as it battles litigation over pipeline
charges, it reported on Monday.
    Debt-laden Transnet has struggled to provide adequate
freight rail and port services for years, holding back economic
growth in Africa's most industrialised nation. Its reported loss
is up from a 5.1 billion rand loss a year earlier.
    Transnet said its revenue had increased by more than 11% in
the latest financial year because of tariff increases and higher
rail and port volumes, but its net operating expenses rose over
19% driven by a provision for ongoing litigation.
        The company was ordered by the High Court in June to pay
a total of 9.1 billion rand damages to Sasol Ltd  SOLJ.J  and
TotalEnergies  TTEF.PA  after the two firms claimed Transnet had
overcharged them for transporting crude oil for several years.
    Transnet has appealed against the court order.
        Its freight rail division, which accounts for 44% of the
group's revenue, registered a marginal improvement in volumes,
hauling 151.7 million tons in the financial year, from 149.5
million tons previously.               
        
  

($1 = 17.8607 rand)

 (Reporting by Tannur Anders and Nelson Banya
Editing by Alexander Winning and Ros Russell)
 ((Tannur.Anders@thomsonreuters.com))