Sasol upbeat after profit spike

2012-09-10 08:19

Johannesburg - Petrochemicals group Sasol [JSE:SOL] posted a 25% rise in full-year earnings on Monday, boosted by higher crude oil prices and a weaker rand, and said it expected better operational performance in the current year.

Sasol, the world's top maker of motor fuel from coal, said headline earnings per share rose 25% to R42.28, in line with Sasol’s own guidance of a jump of between 20% - 30% given in August.

Its earnings were helped by a 17% rise in the average crude oil price, higher prices for its products as well as an 11% weaker rand/dollar exchange rate.

A weaker rand is positive for South African exporters as it lifts profits when overseas earnings are brought home.

Full-year turnover rose to R169.4bn from R142.4bn a year ago.      

Output of synthetic fuels was 7.2 million tonnes and the company said it expected production at that unit to improve to between 7.2 and 7.4 million tonnes in the current year.   

Sasol said it expects crude oil and product prices to remain volatile in the near term, while the rand will remain one of the biggest external factors impacting its profitability.

“We remain on track to deliver on our expectations for improved operational performance,” it added.

The company declared a final gross cash dividend of R11.80 per ordinary share, up from R9.9 the previous year.

The stock is down nearly 3% so far this year, compared with a 10.8% rise in the JSE Top 40 - (Tradeable) [JSE:J200] blue-chip index.

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  • 2coolnick - 2012-09-10 08:48

    Ja Sasol, julle maak net al hoe meer wins terwyl ons bloei onder die hoe brandstof pryse. Ek verstaan nie hoe die regering dit kan toelaat nie. Sasol moet 'n nie winsgewende maatskappy wees. Dit is net regverdig teenoor 55miljoen Suid Afrikaners.

  • dexter.morganson - 2012-09-10 09:41

    Companies today... Is it really something worth making news over when you push up the petrol price year after year (Or is that a monthly thing now? ) and "manage" somehow to show a profit? If they still manage to break even the next step in brilliant business comes to play, retrench employees by the thousands "Saving the company billions in wage expenses" and show a green at Year end... Which in Sasol's case just causes a nice circle of self-enriching and poverty creation for the masses. They fire employees, those employees now in turn can't contribute to the economy, they can't even buy fuel! So they pick up that 1200 people spending 2000rand on fuel a month is costing the company 28.8million a year, so they push the petrol price up again!. Capitalism...

  • nicholas.sean.taylor - 2012-09-11 05:53

    Dexter, please explain your logic?

  • nicholas.sean.taylor - 2012-09-11 05:57

    2coolnick, gaan lees bietjie op Solidarity se webtuiste oor hoe die petrol prys bereken word. Olie maatskapye het geen beheer oor wat die regering besluit die prys moet wees! Hou op moan en koop aandele as jy ook n slice van pie will he.

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