Sasol’s headline earnings per share rose by 51% to R21,92 for the six months to end December 2008, the petrochemicals group said on Monday as it released its interim results.
This was due to both higher oil prices and a weaker rand.
Headline earnings per share are used in South Africa to measure a company’s performance as they strip out certain one-off, non trading and financial items.
Earnings per share increased by 47% to R22,17 and earnings attributable to shareholders increased by 45% to R13,2-billion from R9,1-billion in the prior comparable period.
Operating profit of R21,5-billion was 53% higher than the prior year comparable period, Sasol said.
According to the company, its deleveraged balance sheet, cash flows and liquidity position placed it in a favourable position to weather the global economic crisis.
”Despite the uncertainty in global markets, our overarching long term strategy remains unchanged: to ensure that we prudently manage our businesses and pursue growth projects that are in the best interests of our shareholders and other valued stakeholders.”
Looking ahead, Sasol said earnings would be down for the full 2009 financial year.
”In line with the sharp downturn in worldwide chemical markets, we expect our chemical businesses to be significantly weaker in the second
half of the year compared to the first six months, in contrast to our 2008 performance.”
The company expected its earnings for the financial year to June 30, 2009 to be down compared to the 2008 financial year.
This was due to the overall deterioration in market conditions, with significantly lower than expected crude oil and product prices, as well as lower product demand.
This, however, would be partially negated by a weakening in the rand/US dollar exchange rate, the crude oil hedges and increased production volumes at the Arya and Oryx plants.
Sasol said the current volatility and uncertainty of global markets made it difficult to be more precise in its outlook. An interim cash dividend of R2,50 per ordinary share was declared. – Sapa