Sasol on track for solid results

Johannesburg - Sasol [JSE:SOL], the world's top maker of motor fuel from coal, said on Tuesday it was on track to deliver solid full-year results after higher output and prices boosted its performance in the third quarter.

"Robust global commodity prices have countered the impact of the strong rand, supporting healthy margins. Improved production volumes have sustained good cash generation and a solid balance sheet," chief financial officer Christine Ramon said.

The petrochemicals group said a full-year output of 7.1 million tonnes at its synfuels unit, which underwent a major maintenance shutdown in September last year, was a more realistic target.

The company had last said the unit would produce about 7.2 million tonnes of product in the 2011 financial year, which runs from July to June.

Sasol said group capital investments for the full financial year are estimated at R23bn. Shares in the company were up 1.41% at R350.89 in Tuesday morning trade compared with a 0.6% rise in the JSE's Top 40 - (Tradeable) [JSE:J200] index.