South Africa’s Sasol, the world’s biggest maker of fuels from coal, posted an 18% rise in headline earnings per share, and said on Monday it expected good earnings growth for 2008.
Headline earnings per share, the key profit measure for South African companies which excludes non-trading, capital and certain extraordinary items, rose to R14,56.
It said it was commissioning new production capacity at Arya Sasol and Oryx GTL’s output is steadily increasing, and the company would see benefits in earnings in the second half, and into the 2009 financial year, when production ramps up.
Operating profit grew 15% to R14-billion, buoyed by higher crude oil prices and refined product prices, which were partially offset by a 4% strengthening in the average US dollar/rand exchange rate, and softer refining margins.
The average crude oil price exceeded the cap on Sasol Synfuels and Sasol Petroleum International oil hedges in September to December 2007, resulting in a cash outflow of R465-million.
The recognition of the fair value of the oil hedge resulted in an unrealised fair value loss of R1,1-billion at the end of the period due to a significant rise in crude oil prices.
It also said there had been significant progress in improving operations at the Oryx GTL plant in Qatar. The plant, which produces both ultra low sulphur diesel and naphtha, achieved average daily production for the six-month reporting period of 9 000 barrels per day.
Arya Sasol Polymers in Iran reached a major milestone on November 5 last year when the ethylene cracker produced its first on-specification product. Sustainable ethylene production is projected for the first quarter of the 2008 calendar year.
It said the final terms of a proposed broad-based black economic empowerment deal for up to 10% ownership at Sasol Limited level would be announced soon. – Reuters