Sasol's first half profits looking good
Sasol expects a 6 percent increase in profit for the six months ending 31 December 2017
Sasol is anticipating strong results for the six months ending 31 December 2017, strengthened by solid operational performance across most of its value chain, higher crude oil and product prices and increased demand for its specialty chemicals products.
The petrochemical group said in a trading statement that normalised sales have increased by 3 percent, due to increased market demand driving its business. Its headline earnings per share (HEPS) are expected to increase by between 12 and 17 percent, while its earnings per share (EPS) for the same period are expected to decrease by between 20 and 25 percent.
It further noted that poor economic conditions in South Africa have, howerver, constrained results, which impacted the demand for products and lead to “less than satisfactory operational performance at the Natref operations, a much stronger closing rand/US dollar exchange rate, and the negative impact of remeasurement and once-off item charges”.
It added that losses caused by delays at a South Africa port, as well as resulting from the impact of Hurricane Harvey in the US, are likely to be recovered during the second half of the financial year.
Pictured: Paul Victor, Sasol CFO