Mbabane- Eswatini Electricity Company (EEC) has also reported a net loss of E80 million for the financial year ending 31 March 2025, reflecting a challenging year for the utility provider. This is after the company posted a E247 million operating loss, according to its recently released annual report.
The report attributes the poor financial performance largely to a regional drought, which disrupted local electricity generation and limited the availability of affordable electricity imports from the Southern African Power Pool.
Despite these challenges, EEC recorded revenue growth, with electricity sales rising to E3 billion, up from E2.6 billion in 2024, representing an 11.7% increase. This growth was primarily driven by a 9.08% tariff increase approved by the regulator under a multi-year award for the 2023–2025 financial years, alongside a modest 1% increase in sales volumes.
As at 31 March 2025, the company’s current assets stood at E1.113 billion, which includes E28 million in cash, E136 million in short-term investments, E473 million in trade receivables, and E127 million in inventories.
The company’s total liabilities increased by 24%, rising from E2.1 billion to E2.6 billion. This increase was primarily due to a new E200 million loan facility from Stanlib, additional drawdowns from the World Bank loan, and rural electrification grants recognized under deferred income.
No dividends were declared for the year, reflecting the company’s deepening liquidity challenges. The report highlights that EEC continues to invest in several capital projects, which have required significant cash outflows. The company remains heavily reliant on a E135 million overdraft facility to fund its operational working capital requirements.
The EEC report paints a picture of a utility grappling with environmental, financial, and operational pressures, emphasizing the need for strategic interventions to stabilize its financial position while continuing to meet the country’s electricity demands.
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