Eskom boss Brian Dames quits

Eskom boss Brian Dames quits
Published: 06 December 2013
Johannesburg - Eskom said yesterday its chief executive would step down in March, departing the power utility at a time when South Africa  struggles to keep the lights on due to tight electricity supply.

Eskom chairperson Zola Tsotsi told a media briefing that Brian Dames was stepping down for "personal reasons" and that a search for his successor was already underway.

His resignation follows the departure of another top executive, CFO Paul O'Flaherty in July this year.

Dames was appointed chief executive of Eskom on 1 July 2010, after serving Eskom in various management positions and as member of the executive committee in 2004.

He joined Eskom in 1987 as a graduate in training, according to Whoswho.

The announcement comes at the same time that the company posted a R12.2bn profit for the six months to end-September 2013.

The company has however warned that this profit will be eroded somewhat in the second half of the financial year due to "the seasonality inherent in the sales and maintenance profiles".

Tsotsi thanked and praised Dames for his dedication and commitment to Eskom over a 26-year career at the parastatal. "I want to personally thank Brian for his hard work, for taking the helm of Eskom during arduous times and successfully steering the company through many rough seas.

"Eskom will still have the benefit of his vast experience and knowledge until 31 March 2014," he said in a statement.

He said during this time the Eskom Board and Dames will work together to ensure a smooth transition to a new chief executive. "The process to find a successor is well underway and we expect it to be concluded timeously."

Meanwhile, Eskom reported a profit of R12.24bn for the six months ending 30 September 2013, but warned that it will be somewhat eroded in the second half of the financial year.

First-half profit declined marginally from R12.63bn in the same period last year due to increased operating costs.

It said yesterday that revenue in the first half of the 2013/14 financial year increased 6.1percent to R77.8bn as electricity tariffs rose.

Revenue per kilowatt hour sold increased to 69 cents, compared with 64.9c in the same period in the previous year, while operating costs rose to 55.3c from 47c.

However, the parastatal said this benefit was offset by escalating operating expenditures mainly due to an increase in primary energy costs.

Eskom said the second half of the financial year falls within the summer season, during which it records lower sales and maintenance expenditure.

Eskom acting chief financial officer Caroline Henry said the utility is actively managing its finances, adding that it raised $1bn (R10.5bn at the current rand/dollar exchange rate) through an international bond issuance.

Tsotsi said: "We've kept the lights on thanks to the efforts of the private sector, the public, and thousands of dedicated Eskom employees."

- Fin24.
Tags: Eskom, BrianDames,


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