• Is Cell C sustainable?

    Is the mobile operator another African Bank in the making, asks Gugu Lourie.

  • Alliances that work

    Mutually adding value secures the employer-employee relationship, says Ian Mann.

  • Without prejudice

    We all need to fight the ugly bigotry that’s made news recently, says Mandi Smallhorne.

See More

Sasol perks up after slump

Feb 16 2010 07:13

Company Data

Sasol Limited [JSE:SOL]

Last traded 0
Change -2,31
% Change 0
Cumulative volume 511884
Market cap 268.80bn

Last Updated: 27-01-2015 at 11:58. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Rand, oil price to dent Sasol

Sasol, Tata plan CTL plant

Sasol bids for Zambian refinery

Stocks: what's in store in 2010?

Fund managers' hot stocks

'Dirty business' Sasol under fire


Cape Town - On Monday petrochemical giant Sasol's share price rose 0.74%, climbing back to R269.99 after having fallen R5.05 or 1.8% on Friday in reaction to a trading update in which an earnings decline of 50% to 55% for the half-year to end December 2009 was expected.

Sasol [JSE:SOL] warned in December that its earnings would be at least 45% down on 2008.

Cadiz portfolio manger Kurt Benn says that in a company the size of Sasol many factors might have contributed to the greater decline in earnings.

At face value it could mean that costs grew faster than initially expected, especially with the dollar strengthening against the rand.

Without seeing the actual figures of, for instance, the production volumes for synthetic fuel, it's difficult to speculate, says Benn.

He declined to venture a forecast about what Sasol's share price might do. The announcement of the results on March 8 will give a better indication.

Shoaib Vayej of Sanlam Investment Management says the trading update is simply a confirmation of what was said in December, but that an even larger decline of 57% to 61% is in fact anticipated.

Sasol, with its market capitalisation of R171bn, says the expected sharp decline should be viewed in the light of the record high earnings achieved in the first half of 2009.

At that time Sasol was also supported by oil-price hedging contracts that were in place, which had contributed a net profit of R5bn.

The past six months, however, were characterised by the rand strengthening against the dollar, which is negative for Sasol because a large part of its earnings is earned in dollars.

Average crude oil and fuel prices also declined during the period.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.



Latest Articles

15 Investment Tips for 2015
Tax-free saving accounts are coming
Which generator is right for you?
5 top tips to help you save on your next grocery bill Read More...

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
Add your comment
Comment 0 characters remaining

Company Snapshot

Money Clinic

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