Sasol, the world’s biggest coal-to-gasoline producer, says full-year profit climbed 25% after production at its synfuels division increased.
Earnings excluding one-time items rose to R52.62 per share in the 12 months ended June, from R42.28 the previous year, the Johannesburg-based company said in a statement today. That met the Sasol’s August 1 forecast for an increase of 20% to 30%.
"Macroeconomic factors continue to support Sasol’s overall value proposition," chief executive David Constable said in the statement.
Sasol, which sold its Iranian unit last month after twice writing down its value, has benefited from a 15% decline in the South African rand against the dollar this year, the largest drop among 16 major currencies tracked by Bloomberg.
Higher-than-expected output at its synfuels business and a 20% increase in crude this year has boosted Sasol’s profit.
Operating profit at Sasol’s synfuels division rose 30% to R28.6-billion while earnings by the same measure at its South African energy cluster unit climbed 28% to R37-billion. The company raised its total dividend 9% to R19 per share.
The stock has climbed 35% this year, outpacing the 9.1% gain in the 165-member FTSE/JSE Africa All-Share Index. – Bloomberg