Necsa Reports R125M Profit and Clean Audit as It Prepares for Nuclear Expansion

Necsa’s Group CEO, Loyiso Tyabashe, said the results reflect three years of consistent reform and discipline since the implementation of the corporation’s turnaround strategy in 2021.

The South African Nuclear Energy Corporation (Necsa) has reported a significant financial turnaround, achieving a net profit after tax of R125.2 million for the financial year ending 31 March 2025. The corporation presented its results to Parliament’s Portfolio Committee on Electricity and Energy, marking one of its strongest performances in recent years.

The positive outcome comes alongside a clean audit opinion and an impressive 93% achievement of its Shareholder Compact, signalling robust governance and effective execution of its strategic plan.

A Milestone in Necsa’s Turnaround

Necsa’s Group CEO, Loyiso Tyabashe, said the results reflect three years of consistent reform and discipline since the implementation of the corporation’s turnaround strategy in 2021.

“The positive operational and governance results we witness today bear testimony to a hard-working team of employees, strong oversight, and the support of our stakeholders. This is not a destination but a foundation for future growth,” Tyabashe said.

He added that Necsa’s new strategic direction aims to consolidate its financial recovery while advancing its core mission — developing nuclear science and technology to strengthen South Africa’s position in the global nuclear landscape.

“The strategy we started implementing in 2021 has served us well. We are now ready to move into a new phase that will make Necsa sustainable well into the future and contribute more meaningfully to South Africa’s socio-economic goals,” he said.

Subsidiaries Show Mixed but Improving Results

Necsa’s turnaround has been supported by its two major subsidiaries: NTP Radioisotopes and Pelchem.

• NTP Radioisotopes, a global supplier of nuclear medicine products, posted a net profit after tax of R118.3 million, despite volatility in international markets. The subsidiary also received a clean audit, affirming strong compliance and performance standards.

• Pelchem, which manufactures fluorochemical products, recorded a net loss of R29.7 million, though this reflects a notable reduction from previous years. The company achieved an unqualified audit, signalling improved operational and financial management.

Necsa attributed the improved group performance to stronger governance, streamlined operations, and a disciplined approach to cost control and revenue generation.

Preparing for the Future: Six High-Impact Programmes

Looking ahead, Necsa is planning to execute six strategic programmes that will strengthen South Africa’s role in global nuclear research, technology, and industry. These initiatives are designed to ensure long-term sustainability, innovation, and capacity building across the nuclear value chain.

The programmes include:

1. Re-establishing the front-end nuclear fuel cycle, reviving local uranium processing capabilities.

2. Developing small modular reactors (SMRs) to support cleaner and more flexible power generation.

3. Extending the operational life of SAFARI-1, South Africa’s 60-year-old research reactor.

4. Constructing a new multipurpose nuclear research reactor (MPR) to replace SAFARI-1 and expand radioisotope production.

5. Expanding radioisotope production and services, particularly for medical and industrial use.

6. Beneficiating fluorochemicals and stabilising Pelchem’s operations, while enhancing skills development for the nuclear and broader scientific sectors.

“These programmes will set Necsa on a growth trajectory and position South Africa at the centre of the global nuclear technology industry,” the corporation stated.

Supporting South Africa’s Nuclear Energy Ambitions

The announcement coincides with South Africa’s broader push to expand its nuclear energy capacity as part of the country’s long-term energy security strategy. Speaking at the G20 Nuclear Energy Ministerial Conference in Durban, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa said Necsa plays a pivotal role in shaping the country’s nuclear future.

“Our ambition is to build a new nuclear programme initially the size of 5 000MW. This will not only support our energy mix but also create industrialisation opportunities and exponential growth in nuclear-related skills,” the Minister explained.

Dr Ramokgopa added that Necsa’s experience with the SAFARI-1 research reactor, which has been in operation for six decades, provides a strong foundation for South Africa’s next-generation nuclear ambitions. “We are looking for partners to help us take this capability to another level, and there is immense global interest in collaborating with South Africa,” he said.

A Foundation for Sustainable Growth

Necsa’s strong financial performance, combined with its clear strategic roadmap, marks a turning point for the state-owned entity, which faced years of financial and operational challenges before its 2021 restructuring.

The corporation’s leadership believes that continued investment in innovation, governance, and talent development will ensure Necsa’s sustainability — while contributing to national goals of industrial growth, energy diversification, and job creation.

“Necsa’s progress demonstrates that with the right strategy, leadership, and partnerships, public enterprises can deliver both public value and commercial success,” Tyabashe concluded.