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Johannesburg - Sasol [JSE:SOL] said on Friday that its earnings per share and headline earnings per share for the six months ended December 2010 are estimated to increase by 17% to 27% compared with the prior year comparable reporting period.
The increase in earnings is mainly due to a strong focus on cost containment as well as an improvement in crude oil prices and product prices, partially offset by the continued strength of the rand against the US dollar, it said.
Releasing a trading update, the company said product prices have remained quite resilient with higher oil prices, refining margins and chemical prices being realised. Although the relatively strong rand has put pressure on the group's earnings, the year-on-year improvement in product prices has largely mitigated this negative effect.
The sustained strength of the currency remains a key challenge to the group although there has recently been a slight weakening.
"We are therefore maintaining our focus on the factors within our control, such as cost management and operational efficiency," it said.
As announced in December 2010, Sasol has made a significant investment in upstream shale gas resources in support of its gas-to-liquids (GTL) value proposition in North America.
Sasol said the Ixia empowerment transaction announced last year resulted in WIPCoal Investments owning effectively 10.2% of the equity in Sasol Mining. The once-off non-cash share based payment expense relating to the transaction resulted in an impact of approximately one rand on both HEPS and EPS.
"Our half-year closure process is currently in progress and further adjustments may arise including remeasurement effects," Sasol said.
Sasol's results are expected to be announced on or about Monday March 7.
- I-Net Bridge
The increase in earnings is mainly due to a strong focus on cost containment as well as an improvement in crude oil prices and product prices, partially offset by the continued strength of the rand against the US dollar, it said.
Releasing a trading update, the company said product prices have remained quite resilient with higher oil prices, refining margins and chemical prices being realised. Although the relatively strong rand has put pressure on the group's earnings, the year-on-year improvement in product prices has largely mitigated this negative effect.
The sustained strength of the currency remains a key challenge to the group although there has recently been a slight weakening.
"We are therefore maintaining our focus on the factors within our control, such as cost management and operational efficiency," it said.
As announced in December 2010, Sasol has made a significant investment in upstream shale gas resources in support of its gas-to-liquids (GTL) value proposition in North America.
Sasol said the Ixia empowerment transaction announced last year resulted in WIPCoal Investments owning effectively 10.2% of the equity in Sasol Mining. The once-off non-cash share based payment expense relating to the transaction resulted in an impact of approximately one rand on both HEPS and EPS.
"Our half-year closure process is currently in progress and further adjustments may arise including remeasurement effects," Sasol said.
Sasol's results are expected to be announced on or about Monday March 7.
- I-Net Bridge
