Petrochemicals group Sasol on Monday reported a 33% drop in full-year headline earnings and said it expects earnings for the 2010 financial year to fall year-on-year.
The world’s top maker of motor fuel from coal said headline earnings per share for the year to end-June fell 33% to R25,42, hit by lower oil and product prices and a stronger rand to the dollar.
The result came at the lower end of its own forecast of a fall between 32% and 37%.
”While there has been some recovery in the markets of late, the crude oil price and rand/US dollar exchange rate remains volatile,” it said in a statement.
Sasol said the average oil price achieved during the year was cushioned by the effect of its oil hedge which resulted in a realised gain of R5,056-billion.
”Taking into account the overall market conditions and our assumptions in respect of crude oil and product prices … the earnings for the 2010 financial year are expected to reflect a reduction compared to the 2009 financial year.”
Sasol said it had reprioritised capital expenditure for the next two years to about R15-billion per annum.
The company declared a final cash dividend of R6 per ordinary share.
Headline EPS strips out certain one-off, financial and non-trading items. – Reuters