Petrochemicals group Sasol on Monday reported a 5% rise in full-year headline earnings per share and said it was cautious on its outlook, but forecast a better performance for the next year.
South Africa’s Sasol, the world’s top maker of motor fuel from coal, said headline earnings per share for the year to the end of June rose to R26 57, in line with its own forecast of up to an 8% rise.
Headline earnings are the main profit gauge in South Africa and exclude certain one-off, financial and non-trading items.
“Our financial position is strong and we have the flexibility to pursue our sustainable growth strategy with vigour,” chief executive Pat Davies said in a statement.
Turnover fell to R122,26-billion from R137,84-billion the previous year.
The company said it expects improved operational performance during the next financial year, but is cautious on the outlook due to uncertain macroeconomic factors and its assumptions for crude oil and product prices, weaker refining margins and a stronger rand against the US dollar.
“The strength of the rand/US dollar exchange rate remains the single biggest external factor exerting pressure on our profitability,” it said.
Sasol said its growth projects were on track, with capital expenditure for the next financial year seen at about R19-billion.
The company said a feasibility study for a gas-to-liquids plant in Uzbekistan is expected by the end of the second quarter of the next financial year, while China’s decision on a proposed coal-to-liquids plant is expected in the second half of that same financial year.
Sasol declared a final cash dividend of R7,70, bringing the total dividend to R10,50. — Reuters