The government is likely to come under increasing pressure to bail out floundering state-owned enterprises as the financial results of several of the worst-performing companies are published this month.

The combined funding shortfalls of Denel, Airports Company SA (Acsa), Eskom, the SABC and the South African National Roads Agency Limited (Sanral) are likely to run into many billions. This will present Finance Minister Pravin Gordhan with a major headache ahead of next year's budget, particularly as there is already a shortfall in revenue collection.

The balance sheets of those parastatals will not make for pleasant reading as — Acsa excepted — they are all seeking a capital injection from the government.

Denel is seeking nearly R1.7-billion to replace R1.1-billion in government guarantees, SAA wants R1-billion-R4-billion and the SABC needs R2- billion.

Eskom has already received R60-billion, and may seek more.

The government earlier this year approved guarantees totalling R176-billion over five years in support of Eskom's capital expansion programme. The South African National Roads Agency was recently given a R35-billion capital injection.

Denel the first of the worst performers

Many state-owned companies have been slow to publicise results. Denel was the first of the worst performers to report results for the year to March. Yesterday, it posted a R544-million net loss, and CEO Talib Sadik expects a profit only in 2011-12, the first in nearly a decade. The company was burdened by R80-million in interest charges.

Acsa posts results today while Eskom and the SABC will report in the next two weeks.

SAA is due to announce results next month, and has asked for an extension.

Acsa is expected to post sharply lower earnings. The airport operator is buckling under a mountain of debt used to fund its expansive airports upgrade programme at the same time as airline traffic slowed sharply due to the global recession.

Finance director Priscillah Mabelane said earlier this year that Acsa had already cut to R17-billion the planned capital spending of R22-billion for the five-year period starting last April after shelving plans for a mid field terminal at OR Tambo International Airport.

Acsa spent R5.2-billion on upgrades

In the year to last March, Acsa spent R5.2-billion on upgrades at OR Tambo and Cape Town international airports, and began construction on a new R68-billion airport at La Mercy outside Durban.

Acsa's capital spending is expected to rise to R5.5-billion this financial year and R5-billion in 2010. However, capital does not come cheaply, and Acsa's finance expenses are likely to have rocketed in the 12 months to March.

SAA, when it does finally make its numbers available, will report an operational profit of R1.1-billion before interest and tax.

However, a R1-billion fuel-hedging loss, a $727-million provision for 15 Airbus A320 aircraft on order, and a R1-billion Voyager liability, among other issues, will drag the airline into a massive net loss.

Eskom expected to report a loss

When power utility Eskom releases its results for the year to March next Thursday, the extent to which a combination of rising energy costs, a fall in electricity sales because of the recession, and the multibillion-rand capital expenditure programme has taken its toll will be laid bare.

According to Eskom, funding the capital expenditure programme will test the utility's financial sustainability. The utility is expected to report an operating loss as overall revenue is expected to be down because of a drop in electricity sales, while costs have risen.

The results will also shed light on the rising costs of the capital expenditure programme, which have increased from R87.1-billion in 2009-10 to an expected R103.5-billion in the 2010-11 financial year. With Siseko Njobeni

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