logo
Court slaps Eskom with R1bn bill for Koeberg delays

Court slaps Eskom with R1bn bill for Koeberg delays

News245 days ago
Eskom has been ordered to pay around R1 billion to French nuclear reactor company Framatome over delays in the replacement of Koeberg's steam generators.
The Western Cape High Court agreed with the findings of an adjudicator who investigated the delays two and a half years ago, ruling that Eskom was at fault for the work stoppage and had to pay for breaching its contract.
'There is no basis to set aside the decisions of the adjudicator which are valid and binding,' said acting Judge RT Williams.
He ordered the power utility to pay Framatome €35 288 582 (about R728 million at current exchange rates) plus R256.6 million, for a total of R984.6 million. Eskom will likely have to pay well over R1 billion when it factors in interest and Framatome's legal fees.
The dispute centres on the replacement of steam generators at Koeberg, South Africa's sole nuclear power station. Framatome had, in 2018, taken over the contract to supply and install replacement generators at the power plant's two reactor buildings from Areva NP.
Eskom needed to replace the plant's six steam generators - three in each of its two units - to prolong its life by another 20 years.
Eskom scheduled an outage for Koeberg's Unit 2 starting in January 2022 to replace its generators. But in March, it told Framatome it would not be continuing with the steam generator replacement and ordered it to stop work.
Framatome told Eskom that the order to stop work amounted to a 'compensation event' under its contract – meaning it could claim for the disruption. Eskom's project manager agreed, but gave the compensation as nil – meaning Framatome would not be able to claw anything back.
The nuclear company then referred the matter to an adjudicator as provided for in its contract with Eskom.
READ | Eskom scrambles to save R5bn Koeberg project after generator is 'dropped' in China
The adjudicator, advocate Peter Ramsden, had to rule whether the event did, indeed, amount to a compensation event. He had to say what, if anything, Eskom owed Framatome for the abrupt stoppage.
On 15 December 2022, Ramsden ruled the work stoppage order was a compensation event. In March 2023 – a year after Eskom told Framatome to stop work – he fixed what Eskom owed at €35.2 million plus R256.6 million and interest.
Eskom then took the order to court. It argued that adjudicator had taken too long to make a decision, that he had overstepped his authority, that this authority had lapsed, and that he had failed to give detailed reasons for his decision.
Framatome, meanwhile, supported Ramsden's decision.
In a ruling handed down last week, Williams dismissed every one of Eskom's objections, saying Ramsden had done nothing wrong.
'Eskom's challenge to the reasons provided by the adjudicator is clearly a distortion of the quantum decision and a stratagem to avoid having to comply with the adjudicator's decision,' he found.
The steam generators in Unit 2 were eventually replaced during a long‑term outage that began in December 2023. The unit was synchronised to the grid again in December last year.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

NuScale Power (SMR) Soars to New High Ahead of Earnings
NuScale Power (SMR) Soars to New High Ahead of Earnings

Yahoo

timean hour ago

  • Yahoo

NuScale Power (SMR) Soars to New High Ahead of Earnings

We recently published . NuScale Power Corporation (NYSE:SMR) is one of the best-performing stocks on Thursday. NuScale Power extended gains to hit a new all-time high on Thursday as investors repositioned portfolios ahead of the release of its second quarter earnings performance. At intra-day trading, NuScale Power Corporation (NYSE:SMR) rallied to a new record high of $52.86 before traders sold early positions to end the day just up by 6.65 percent at $51.03 apiece. According to the company, it is scheduled to release its financial and operating highlights for the April to June period after market close on August 7, 2025. Investors will be closely watching for any cues on deals with companies and updated business outlook following President Donald Trump's signing of an executive order in May this year, which aims to quadruple the nuclear power industry in the US to 400 GW by 2050. Copyright: vencavolrab78 / 123RF Stock Photo NuScale Power Corporation (NYSE:SMR), alongside the broader industry, currently earns a highly optimistic outlook from analysts, with the nuclear sector expected to be a key driver of the booming AI. While we acknowledge the potential of SMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Attacq (JSE:ATT) shareholders have earned a 34% CAGR over the last five years
Attacq (JSE:ATT) shareholders have earned a 34% CAGR over the last five years

Yahoo

time2 hours ago

  • Yahoo

Attacq (JSE:ATT) shareholders have earned a 34% CAGR over the last five years

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Attacq Limited (JSE:ATT) shareholders would be well aware of this, since the stock is up 238% in five years. The last week saw the share price soften some 1.4%. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the last half decade, Attacq became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the Attacq share price is up 124% in the last three years. Meanwhile, EPS is up 3.7% per year. This EPS growth is lower than the 31% average annual increase in the share price over three years. So one can reasonably conclude the market is more enthusiastic about the stock than it was three years ago. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on Attacq's earnings, revenue and cash flow. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Attacq, it has a TSR of 330% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! A Different Perspective It's good to see that Attacq has rewarded shareholders with a total shareholder return of 38% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 34%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Attacq is showing 2 warning signs in our investment analysis , you should know about... If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store