SARAH BULLEN,Johannesburg | Thursday 9.45am.
SYNTHETIC fuel group Sasol on Wednesday reported a 18,6% fall in attributable profit to R2-billion for the year to June — its first fall in profits in a decade.
The fall was despite a weaker rand to dollar exchange rate, R500-million in synthetic fuel subsidies and a R100-million transfer from its tax equalisation fund to its income statement.
Sasol’s profit before tax fell 22,3% to R3,2-billion, while operating profit fell 20% to R3,1-billion.
Group turnover, however, increased 5,4% to R16,6-billion — mainly as a result of higher production volumes from existing plants and increased production from new plants commissioned during the year.
MD Pieter Cox said that the results were achieved in an environment where all variable factors, excluding the exchange rate, were stacked against the company.
Meanwhile, the Competition Board is due to meet on Thursday to discuss Sasol’s proposed R4,6-billion acquisition of explosives and chemicals group AECI. Should it be given the go-ahead, Cox said, “the turnover of the Sasol Group will increase by about 50% with immediate effect,” and there is significant potential for a reduction in overhead costs.
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