Publications
Partners
Johannesburg - Petrochemicals group Sasol [JSE:SOL] on
Monday posted a 27% rise in full-year earnings, boosted by cost cuts and higher
oil and product prices and said it expects a rise in volumes at its synthetic
fuel operation this financial year.
Sasol, the world's top maker of motor fuel from oil, said
headline earnings per share for the year to the end of June rose 27% to R33.85
from the previous year.
"Higher global commodity prices have supported the
healthy margins delivered, particularly in our chemicals businesses, negating
the impact of the strong rand," Chief Financial Officer Christine Ramon
said in a statement.
The earnings came in the middle of Sasol's own forecast of a
22% - 32% jump in earnings given in late July.
A strong rand is a negative for South African exporters,
because it eats into profits when overseas earnings are brought home.
Full-year turnover rose to R142.4bn from R122.3bn the
previous year.
The company said it expects volumes from its synthetic fuels
operations to increase to between 7.2 and 7.3 million tonnes in the current
financial year and forecast improved volumes from its operations in Mozambique
and Canada.
"We remain on track to deliver on our expectations for
an improved operational performance and to contain cost increases to within
inflation," it said in its outlook.
Sasol declared a final cash dividend of R9.90 per share, up
from R7.70 a year ago.
Sasol shares are down 6.43% so far this year, compared with a 5.33% fall in the JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index.
Shares down
Sasol shares opened more than 3% lower on Monday, reacting
to subdued global sentiment.
"It seems global sentiment is affecting the share. The
earnings were in line with my expectations and there are some interesting news
on the projects front," said Afrifocus analyst Jui Kulkami.
Sasol shares were down 2.79% at R314.97 at 07:13 GMT, in line with a 2.76% drop in the JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index.
