Stefanutti swings into R1bn loss amid Eskom woes

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30-07-2020
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Business Day Live
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Construction and engineering firm Stefanutti Stocks swung into a R1bn loss amid claims from Eskom it was overpaid for its work at the Kusile power station project, which required it to make provision for unrecoverable costs at the project.

The group reported a loss of R1.07bn in its year to end-February, from a loss of R111.3m previously, with the group making a provision of R461m for Kusile

An Eskom report earlier in 2020 claimed a R1bn overpayment to the Stefanutti Stocks-Basil Read joint venture, something Stefanutti disputes.

The group said the initial funding requirement at Kusile has increased from R400m to about R986m excluding the impact of Covid-19.

“Consequently, in addition to the provision of R263m raised at February 2019 for the potential unrecoverable preliminary and general costs, the group has now raised a further provision of R462m,” said CEO Russell Crawford.

The group is also battling with difficult market conditions, also making a R331m provision for late payments from clients.

In morning trade on Thursday, Stefanutti’s share was down 6.9% to 27c, having fallen 60% over the past two years.