South African state-owned logistics group Transnet made a larger loss of 7.3 billion rand ($408.72 million) in the year to the end of March 2024, widening losses as it battles litigation over pipeline charges, it reported on Monday.
Debt-laden Transnet has struggled to provide adequate freight rail and port services for years, holding back economic growth in Africa's most industrialised nation. Its reported loss is up from a 5.1 billion rand loss a year earlier.
Transnet said its revenue had increased by more than 11% in the latest financial year because of tariff increases and higher rail and port volumes, but its net operating expenses rose over 19% driven by a provision for ongoing litigation.
The company was ordered by the High Court in June to pay a total of 9.1 billion rand damages to Sasol Ltd (SOLJ.J) and TotalEnergies (TTEF.PA) after the two firms claimed Transnet had overcharged them for transporting crude oil for several years.
Transnet has appealed against the court order.
Its freight rail division, which accounts for 44% of the group's revenue, registered a marginal improvement in volumes, hauling 151.7 million tons in the financial year, from 149.5 million tons previously.
($1 = 17.8607 rand)
