|
Capital expenditure of various State Owned Entities (SOE)
Date: 21 Aug 2018 Category: Economics |
Related Topics |
|
We take a look at the latest capital expenditure estimates of various state owned entities as published by Statistics South Africa and focus on a select few state owned enterprises (SOE) and what exactly their capital expenditure money was spent on.
It should be noted that public sector (I.e government capital expenditure) has declined for the first time since 2010 (as this article from yesterday shows). Today we focus on:
|
|
Mirror mirror on the wall who is the biggest capex spender of them all?
Before answering who the biggest capex spender of the 5 selected SOE's are, we would like to define what capex actually is. According to our friends at Investopedia.com capex can be defined as "Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. CapEx is often used to undertake new projects or investments by the firm. This type of financial outlay is also made by companies to maintain or increase the scope of their operations.Capital expenditures can include everything from repairing a roof to building, to purchasing a piece of equipment, or building a brand new factory."
Basically it is funds used to main current assets, buy new assets (fixed and movable) in order to ensure the effective running and growth of the business/enterprise. The pie chart below shows the total capital expenditure of the 5 SOE's selected, and it is clear that ESKOM has by far the biggest capital expenditure of the SOE's selected.
Basically it is funds used to main current assets, buy new assets (fixed and movable) in order to ensure the effective running and growth of the business/enterprise. The pie chart below shows the total capital expenditure of the 5 SOE's selected, and it is clear that ESKOM has by far the biggest capital expenditure of the SOE's selected.
The summary below shows the total capex (ranked from highest to lowest) for each of the 5 SOE's for the year 2017:
The pie chart below shows total capex spent on plants, machinery and equipment during 2017. We find it odd that PRASA report that no money was spent on this at all.
- ESKOM: R 75 686 910 000
- Transnet: R 25 402 000 000
- Passenger Rail Agency (PRASA): R 5 432 928 000
- South African Airways (SAA):R 785 051 000
- Denel: R 46 080 000
The pie chart below shows total capex spent on plants, machinery and equipment during 2017. We find it odd that PRASA report that no money was spent on this at all.
The summary below shows the total capex on plant, machinery and equipment (ranked from highest to lowest) for each of the 5 SOE's for the year 2017:
- Transnet: R 24 531 000 000
- ESKOM: R 2 152 265 000
- South African Airways (SAA): R 153 475 000
- Denel: R 39 560 000
- Passenger Rail Agency (PRASA): R 0
The summary below shows the total capex on Transport equipment (ranked from highest to lowest) for each of the 5 SOE's for the year 2017:
While there has been a slow down in capital expenditure by public sector, it is still spending massive amounts, all we as South Africans can hope for is that it is spent effectively and not to benefit a select corrupt few.
- ESKOM: R 769 046 000
- South African Airways (SAA): R 426 814 000
- Transnet: R 282 000 000
- Denel: R 1 486 000
- Passenger Rail Agency (PRASA): R 0
While there has been a slow down in capital expenditure by public sector, it is still spending massive amounts, all we as South Africans can hope for is that it is spent effectively and not to benefit a select corrupt few.