Data provided by McGregor BFA
All data is delayed
Loading...
See More

Sasol profit soars on rand, oil price

Mar 12 2012 07:58 Reuters

Company Data

Sasol Limited [JSE:SOL]

Last traded 586.46
Change 0.01
% Change 0.00
Cumulative volume 447423
Market cap 381.30bn

Last Updated: 23/04/2014 at 04:08. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Group pressures firms to exit Iran

Sasol may divest from Iran unit

Sasol expects 45% higher earnings

Sasol plans R40bn capex over next 2 years

Sasol reviews Iran ops on sanction fears

Sasol gives up on fracking in the Karoo

 

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 February.

“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 previous period.

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 output.

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 index.

 
sasol

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
11 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Zille: DA will provide real, sustainable jobs

The DA says it has a policy package in place which will lead to 6m real, sustainable jobs being created. Watch Helen Zille explain.

 
 

Latest elections multimedia

11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...