Strong performances reported at most business units in half-year to December, oil and chemicals giant says
Rand strengthening, labour disruption in its mining
division and distortions from prior-year comparisons will partly offset a
fundamentally strong performance from most oil and chemicals giant
Sasol’s business units in the
six months to December.
Sasol has global synthetic fuel and chemicals operations. It is also South Africa’s only producer of liquid fuels, extracted from coal.
It said on Thursday that its interim headline earnings a share would fall 34%-44% against the same period in 2016, while basic earnings a share would rise 12%-22%. Sasol’s shares fell 3.7% to R406.56 after the news, while Brent crude oil was trading 0.94% firmer at $55.82 a barrel and the rand was 0.9% weaker at R13.35 a dollar.
six months to December.
Sasol has global synthetic fuel and chemicals operations. It is also South Africa’s only producer of liquid fuels, extracted from coal.
It said on Thursday that its interim headline earnings a share would fall 34%-44% against the same period in 2016, while basic earnings a share would rise 12%-22%. Sasol’s shares fell 3.7% to R406.56 after the news, while Brent crude oil was trading 0.94% firmer at $55.82 a barrel and the rand was 0.9% weaker at R13.35 a dollar.
Brent crude, which touched a recent low point of $29.25 a
barrel a year ago, has since almost doubled after an agreement among
the world’s major producers late in 2016 to cut back production and a
gradual improvement in global demand.
Sasol said the rand/dollar exchange rate at the end of December had firmed to R13.74, from R14.71 at end-June, resulting in a R1.3bn reduction in the value of foreign assets on the balance sheet. In the same period in 2016, there was a translation gain of R2.6bn.
R1bn more was lost from labour disruption at Sasol’s coal mines, which reduced its coal output by 16%. It incurred additional costs in securing supply for Secunda Synfuels. Sasol also reported a R2.3bn gain in the first half of its previous financial year on the reversal of a provision at Escravos GTL.
Sasol’s other business units performed strongly, it said.
It produced 1% more synfuels at Secunda and 8% more synfuels in its Eurasian operations, although volumes at the Natref refinery fell 7%, mainly because of a planned shutdown.
Sasol said the rand/dollar exchange rate at the end of December had firmed to R13.74, from R14.71 at end-June, resulting in a R1.3bn reduction in the value of foreign assets on the balance sheet. In the same period in 2016, there was a translation gain of R2.6bn.
R1bn more was lost from labour disruption at Sasol’s coal mines, which reduced its coal output by 16%. It incurred additional costs in securing supply for Secunda Synfuels. Sasol also reported a R2.3bn gain in the first half of its previous financial year on the reversal of a provision at Escravos GTL.
Sasol’s other business units performed strongly, it said.
It produced 1% more synfuels at Secunda and 8% more synfuels in its Eurasian operations, although volumes at the Natref refinery fell 7%, mainly because of a planned shutdown.
No comments:
Post a Comment