Water Services makes E61.8 million profit
MBABANE – The Eswatini Water Services Corporation (EWSC) made a profit of E61.8 million in the year 2021, compared to E52.8 million in 2020.
According to EWSC’s Annual Report for the year 2021, the corporation was able to control its expenditure, which resulted in a positive impact on the bottom line.
The Managing Director, Jabulile Mashwama, stated that the COVID-19 pandemic had a negative financial impact on the corporation.
“Not only was the implementation of the tariff increase delayed by three months, but our revenue targets, on a positive note we were able to control expenditure, which resulted in a positive impact on the bottom line. This year’s results show the corporation’s resilience, reaffirming its business as a going concern,” read the message from the MD in part. This report was yesterday tabled in Parliament by the Minister of Agriculture Jabulani Mabuza, on behalf of the minister of Natural Resources and Energy. It was further reported that the operating revenue increased from E397.7 million to E417.1 million, representing an increase of 4.9 per cent. “An operating expenditure of E400.4 million was recorded, which is up by 2.4 per cent compared to last year (E390 million),” further read the report. The MD stated that cost control measures and efficiency initiatives continued to keep operating expenses within desired levels. It was reported that operating profit stood at E16.7 million, which was E10 million more than the previous year, when the operating profit stood at E6.7 million. “Profit for the year amounted to E61.8 million in comparison to E52.8 million in 2020. Total assets amounted to E2.98 billion in comparison to E2.69 billion in 2020 and total liabilities stood at E2.32 billion (E2.09 in 2020),” stated the MD. She further stated that the year under review, had been one of the most challenging faced by the corporation. She stated that while the economy was on the verge of recovery, disaster struck in the form of the COVID-19 scourge which negatively affected the socioeconomic environment, triggering a ripple effect in its operating environment.
“This disrupted the implementation of our Strategic Plan 2018 – 2021 and distorted annual working plans and budgets, resulting in operating and financial targets not being achieved.
The country’s fiscal position slowed down project implementation and the dull business and economic climate continued to weigh heavily against the corporation, reducing cash receipts and increasing billed arrears,” stated the MD.
She further reported that some capital projects had to be stalled and some deferred, leading to challenges of delivering on strategic plan objectives and national and international targets such as Vision 2022 and Sustainable Development Goals (SDGs). It was reported that the period also marked the end of a 2018 – 2021 Strategic Plan cycle. Due to the uncertainty about the future of the business and economic environment, brought about by the COVID-19 pandemic, a three-year strategic plan for 2022 to 2024 could not be formulated. According to the MD of the corporation, for business continuity, the corporation drafted a one-year Corporate Plan (2021/2022) to guide the business during the economic recovery transition period.
Afloat
“As a corporation we will strive to deliver on the targets of the plan so that we can keep the business of the corporation afloat during these trying times,” stated Mashwama.
It was also reported that the overall Safety, Health, Environment and Quality (SHEQ) performance of the corporation had shown improvement as it was evaluated at 90.3 per cent at year-end against the set standards.
This performance was based on an internal SHEQ Audit Tool which was a 360 degrees evaluation tool. The score indicated a 4 per cent increase from the 86 per cent baseline coming into the financial year. The corporation was still five per cent short of its strategic target of 95 per cent and above, according to the report.