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Johannesburg - Sasol [JSE:SOL] said on Thursday the group remained on track to improve performance in the 2011 fiscal year, but said the strong rand was likely to weigh on earnings.
Sasol, the world's top maker of motor fuel from coal, said group turnover for the first quarter of the 2011 financial year was slightly higher than the quarterly average achieved during the second half of the previous fiscal year, boosted by higher product prices and output boosts, especially from its offshore businesses.
Sasol's financial year runs from July to June.
"Our businesses have continued to perform well operationally," chief financial officer Christine Ramon said in a statement to investors. "The sustained strength of the currency, however, remains a key challenge to the group."
South African companies have been battling with the strong rand, which has risen around 26% against the US dollar since the start of 2009.
The company said its two open cycle gas turbines, which together generate around 200-220 MW, have been in operation since the middle of July, allowing Sasol to produce 50% of its power requirements in South Africa and reducing its reliance on electricity supplied by power utility Eskom.
Sasol has decided to install two heat recovery steam generators to generate an additional 80 MW, expected to be commissioned by the middle of next year.
"In the longer term, we are also investigating initiatives to replace natural gas feedstock with waste gas that is currently flared," Ramon said.
Sasol said its Secunda synfuels operation, half of which was shut for three weeks for maintenance, was estimated to produce 7.2 million tonnes of products this financial year, slightly down from its 7.3 million tonnes target due to a delay in re-commissioning of the plant.
Sasol said it plans to construct a tetramerisation plant to manufacture octene by tetramerising ethylene. The plant, expected to produce 100,000 tonnes per year, is expected to be constructed by the 2014 financial year.
Sasol, the world's top maker of motor fuel from coal, said group turnover for the first quarter of the 2011 financial year was slightly higher than the quarterly average achieved during the second half of the previous fiscal year, boosted by higher product prices and output boosts, especially from its offshore businesses.
Sasol's financial year runs from July to June.
"Our businesses have continued to perform well operationally," chief financial officer Christine Ramon said in a statement to investors. "The sustained strength of the currency, however, remains a key challenge to the group."
South African companies have been battling with the strong rand, which has risen around 26% against the US dollar since the start of 2009.
The company said its two open cycle gas turbines, which together generate around 200-220 MW, have been in operation since the middle of July, allowing Sasol to produce 50% of its power requirements in South Africa and reducing its reliance on electricity supplied by power utility Eskom.
Sasol has decided to install two heat recovery steam generators to generate an additional 80 MW, expected to be commissioned by the middle of next year.
"In the longer term, we are also investigating initiatives to replace natural gas feedstock with waste gas that is currently flared," Ramon said.
Sasol said its Secunda synfuels operation, half of which was shut for three weeks for maintenance, was estimated to produce 7.2 million tonnes of products this financial year, slightly down from its 7.3 million tonnes target due to a delay in re-commissioning of the plant.
Sasol said it plans to construct a tetramerisation plant to manufacture octene by tetramerising ethylene. The plant, expected to produce 100,000 tonnes per year, is expected to be constructed by the 2014 financial year.
