"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. "Transnet powered ahead with its ground-breaking infrastructure investment programme, spending R16.1bn as it confirms its commitment to the market demand strategy (MDS). This year's investment takes the total since 2012 to an unprecedented R108.9bn. Transnet continues to ensure that its spend matches validated demand" said the company.
Source: BDpro
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