https://www.engineeringnews.co.za
Business|Energy|Financial|Industrial|Manufacturing|Nuclear|Projects|Resources|Services|Sustainable|Technology|Waste|Manufacturing |Infrastructure|Waste
Business|Energy|Financial|Industrial|Manufacturing|Nuclear|Projects|Resources|Services|Sustainable|Technology|Waste|Manufacturing |Infrastructure|Waste
business|energy|financial|industrial|manufacturing|nuclear|projects|resources|services|sustainable|technology|waste-company|manufacturing-industry-term|infrastructure|waste

Necsa reports much reduced losses and that it is achieving turnaround

Necsa CEO Loyiso Tyabashe

Necsa CEO Loyiso Tyabashe

18th October 2022

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

Font size: - +

The South African Nuclear Energy Corporation (Necsa) was successfully turning itself around, the State-owned entity’s CEO, Loyiso Tyabashe, has told Parliament’s Portfolio Committee on Mineral Resources and Energy. He also pointed out that the 2021/22 financial year (FY) had been a time of transition from Necsa’s previous strategy and corporate plan to a new strategy, focused on growth.

At the start of the financial year, Necsa had been forecast to make a loss for the year of R155-million. At the end of the financial year, the loss actually recorded had been much less, at R23.2-million. During the previous financial year, it had suffered a loss of R318.74-million. In FY 2019/20 the loss had been R190.91-million and in FY 2018/19, Necsa had seen a loss of R12.46-million.

The new, approved strategy and corporate plan had a focus on increasing the number and diversity of the entity’s revenue streams. This would first reduce Necsa’s dependence on the fiscus and then move the organisation into a position of contributing to the country’s socioeconomic objectives, as established in the National Development Plan. For FY 2022/23, Necsa was now predicted to record a loss of R23.16-million, followed by a return to profit, of R86.78-million in FY 2023/24, rising to R106.89-million in FY 2024/25.

In terms of predetermined objectives, while in FY 2020/21 only 50% of these had been achieved, in FY 2021/22 63% had been achieved. (‘Achieved’ being defined as being within 10%, or above, of the target.) Necsa’s commercial programme achieved 54% of its targets, with nuclear medicine and industrial isotopes reaching 80%, nuclear and industrial manufacturing achieving 50%, and fluorochemicals recording 33%. The group’s infrastructure programme reached 50% of its targets, but this was subdivided into the new multipurpose reactor programme, which achieved 100%, and the Pelindaba Masterplan, which recorded 0%. Growth initiatives recorded a success rate of 60%, while research capability, support services and compliance also reached 100%.

In terms of the audit findings regarding Necsa, in FY 2021/22 there were 14 ‘material findings’. This was a significant reduction over the 63 material findings logged in FY 2020/21, a figure that was itself a large reduction over the 160 material findings recorded in FY 2019/20.

In FY 2021/22, fruitless and wasteful expenditure at Necsa came to R0.011-million, as against R0.09-million in FY 2020/21. But in FY 2019/20 fruitless and wasteful expenditure had come to R2.97-million, while in FY 2018/19 it had amounted to R4.08-million. 

Irregular expenditure in FY 2021/22 had totalled R11.811-million. But in FY 2020/21 it was R32.146-million, in FY 2019/20 it had been R34.623-million, and in FY 2018/19, R69.875-million.

Tyabashe noted that the group’s improving compliance with the Public Finance Management Act was part of the strengthening of Necsa’s governance. The turnaround also involved an internal cultural adaptation, “compacted on” a high-performance culture. The group’s future growth would come from seven strategic projects, categorised as neutron source generation projects; advanced manufacturing, nuclear and related technology applications; fluorochemical business sustainability; radioisotopes and pharmaceutical business sustainability; waste projects; energy projects; and, sustainable site utilisation and infrastructure management.   

Edited by Creamer Media Reporter

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

On-The-Air (17/05/2024)
On-The-Air (17/05/2024)
17th May 2024 By: Martin Creamer
Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.243 0.301s - 170pq - 2rq
Subscribe Now