May 15, 2008
Daily podcast - May 15, 2008Back
Cape Town|Johannesburg|Mogadishu|BHP|Eskom|Public Enterprises|Standard & Poor's|Sylvania Resources|South Africa|Zimbabwe|Energy Summit|Platinum-from-dumps Producer|South African Government|Alec Erwin|Andrew Etzinger|John Edwards|Mercedes Benz|Richard Rossiter|Terry McConnachie
© Reuse this This podcast is brought to you by Mercedes Benz Commercial, the right partner.
From Creamer Media in Johannesburg, I'm Shannon O'Donnell.
Making headlines today:
Struggling State-owned power utility Eskom on Wednesday remained "cautiously optimistic" that it would squeeze through the winter months without serious load shedding, but warned that its power supply remained in a precarious position.
Demand-side manager Andrew Etzinger said that Eskom was in a better position now than what it was in January, or before winter last year, after having completed maintenance, as well as adding new generation capacity and improving coal stockpiles.
He said that Eskom's average coal stockpile level now stood at 16,2 days, compared with the average ten days in January.
It is increasingly likely that the South African government, which is the sole shareholder in power utility Eskom, would set out a "smoothed" tariff-increase scenario at the energy summit that will convene in Johannesburg on Friday.
But a high-placed Eskom official said that there still appeared to be a desire to safeguard the utility's BBB+ credit rating with Standard & Poor's, which placed the corporation on a negative credit watch in January.
This implied that the funding shortfall would most probably have to be met through a combination of a debt-raising exercise, as well as from a scaled-up shareholder injection from National Treasury.
At a media briefing in Cape Town on Wednesday, Public Enterprises Minister Alec Erwin gave the strongest indication yet that a smoothed tariff scenario would indeed be pursued.
Nonexecutive chairperson Richard Rossiter said that the situation was atypical to any of the junior exploration companies, in that it was producing a mountain of cash flow in the beginning part of its life, instead of asking the shareholders for more cash to drill another hole. The challenge the company has now, is how to spend that cash flow, he said.
The company boasted a margin of 84%, and its pre-tax profit at March 2008 was up 146% quarter-on-quarter to R56-million.
Sylvania CEO Terry McConnachie:
Also making headlines:
Eskom reveals its pricing hand in tender for near-term capacity
In political news:
Zimbabwe presidential runoff vote delayed says government
That's a round up of news making headlines today. For more on these and other stories, visit engineeringnews.co.za, miningweekly.com and polity.org.za
Edited by: Shannon de Ryhove© Reuse this Comment Guidelines
Other Intellectual Property Law News
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
Next ArticleIt’s not the Currie Cup, Davies avers as he welcomes Nigeria’s rise to top African economy