Sasol profit soars on rand, oil price
Johannesburg - South African petrochemicals group Sasol
[JSE:SOL] on Monday reported an 81% rise in first-half profit, boosted by higher
oil and product prices and a weaker rand and said it was on track to deliver
higher earnings for the full year.
Sasol, the world’s top maker of motor fuel from coal, said
headline earnings per share for the six months to end-December jumped 81% to
R23.50, at the bottom of a range of an 80% - 90% increase given in early
“We have maintained a resilient production performance
despite challenges,” CEO David Constable said in a statement.
The average crude oil price was at $111.41 a barrel at
end-December, compared with $81.68 a year earlier.
The rand/dollar exchange rate was 7% weaker than the
A stronger rand is a negative for South African exporters as
it eats into profits when overseas earnings are brought home. The currency has
weakened 14% against the dollar since the start of 2011.
“Our resilient operations will enable us to benefit from the
favourable rand commodity prices and therefore we are well positioned to
deliver increased earnings for the 2012 financial year,” it said.
“Crude oil prices have been increasing steadily supported by
recent developments in supply and geopolitics in the Middle East/North Africa,”
it said, but warned that the rand-dollar exchange rate remained the single
biggest external factor impacting its profitability.
The company said Sasol Synfuels’ production for the full
year was expected at between 7.0-7.2 million tonnes.
The forecast was revised down in November from an estimate
of between 7.2-7.3 million due to a strike and other incidents which hit
Under new leadership since July, Sasol is investing heavily
to further diversify its operations into chemicals, gas and clean energy
projects, and to reduce its heavy carbon footprint.
"The macroeconomic trends, the global need for energy
diversification and energy security are all supportive of our gas-to-liquids
value proposition," Constable said.
The company declared an interim dividend of R5.70, up 84% on
the comparison period.
Shares in the company are up 1.9% in the year to date,
compared with a 5.7% rise in the JSE Top 40 - (Tradeable) [JSE:J200] blue-chip
Evidence of high demand and us the consumers being reaped off in broad daylight.
Maybe you should first learn how to spell or use your word in the correct context before even commenting on the economy. Sasol reap rewards because they are clever by producing fuel from coal. fuel will always be in high demand, therefore they can charge market related prices for their fuel, and therefore keeping a constant but steady demand for their products and in turn maximising their profits so they can invest in "green energy" and give good divedends to shareholders.
@Steven, no this is profits after all budgets are taken into consideration.
Profits are for the share holders.
I assure you that a green future is hardly a dent in their budget. They wouldn't want their biggest profit maker to be taken off the market by green energy unless it can also make a profit.
And this is why we have petrol increases, not to forget that we still subsidize SASOL in the petrol price.
So how about passing on some of the profits to the taxpayer that not only funded SASOL, but also kept it afloat when oil prices where too low. Why should we pay extreme prices for fuel when SASOL could easily supply the who country with product. Why do we pay the same price for imported and locally produced fuel. Why not charge a median price?
Am I the only one that sees something wrong with this picture?
so Steven, why is petrol from coal charged the same as expensive crude oil? RIP OFF + NOT CLEVER
Sasol has a brilliant business plan and world class technology . Good on them for making such a big profit .Pity we the normally consumers cant benefit in someway
we must have two regulated price model. one for crude oil and the other for coal.