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Tuesday, 02 December, 2008, 00:10 GMT | more >>

Sasol sees brighter times ahead



By Upstream staff 

South African fuels and chemicals group Sasol said improved performance by its energy businesses helped support a 15% year-on-year rise in its earnings for the six months to December 2007, while progress at its Oryx gas-to-liquids plant in Qatar and other capital projects was laying a foundation for future growth.

Sasol reported first-half net earnings of 9.1 billion rands ($1.14 billion), compared with 8 billion rands in the same period last year, while headline earnings per share rose 18% to 15.05 rands over the same interval.

Cash from operating activities rose 4% to 14.1 billion rands, the Johannesburg-based company said today.

Sasol saw operating profit in its gas operations fall 21% in the period to 923 million rands compared with last year. However, pro forma results including the sale of a 25% stake in Sasol’s Republic of Mozambique Pipeline Investments Company saw operating profit for the segment rise 16% on increased sales at higher margins, the company said.

The domestic synthetic fuels operation reported a 7% fall in operating profits to 7.82 billion rands as gains from record oil prices were offset by a sharp fall in the value of the South African rand and effect of an unrealised fair value loss on oil hedging, Sasol said.

Meanwhile, the company’s Oryx gas-to-liquids operation in Qatar, which has experienced significant teething problems, trimmed its half-year losses relative to the previous year by 25% to 274 million rands. Sasol said it brought both the plant’s production trains on line simultaneously in December, allowing it to start ramping up output.

Sasol’s petroleum exploration unit saw operating profit fall 12% to 309 million rands in the same period as it was hit by higher exploration costs, which offset higher oil prices and increased volumes from its operation off Gabon in West Africa.

The company also benefited from gains in its refining and petrochemicals businesses.

Sasol predicted good earnings for its full-year 2008 earnings and into 2009 as production at the Oryx plant and at its Arya polymers plant in Iran ramp up.

The company said it would complete a plan soon to hand up to 10% of the company to economic empowerment vehicles controlled by black South Africans.


Monday, 10 March, 2008, 08:18 GMT  | last updated: Monday, 10 March, 2008, 08:25 GMT

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