Business 12.9.2016 09:56 am

Sasol points to energy prices as it records heavy declines

FILE PICTURE: Logo of Sasol at its headquarters in Johannesburg. Picture: AFP

FILE PICTURE: Logo of Sasol at its headquarters in Johannesburg. Picture: AFP

Operating profit came in at R24.2 billion, representing a decrease of 48%, on the back of highly volatile global markets.

Sasol pointed to the sustained collapse in energy prices as it reported a 55% decline in earnings attributable to shareholders, from R29.7 billion to R13.2 billion, in the year ending June.

The chemicals and energy company that employs 30 100 people in 33 countries said the work undertaken since 2012 to reposition it and reduce the cost base had proved invaluable, allowing it “to sustainably withstand a lower for much longer oil price environment”.

“While global oil prices are beyond our control, we have performed strongly on the factors within our control,” Sasol said in a statement on Monday.

Operating profit came in at R24.2 billion, representing a decrease of 48%, on the back of challenging and highly volatile global markets. Turnover was R173 billion, down from R185 billion.

Sasol said average Brent crude oil prices in the reporting period had been 41% lower on the prior year. The effect of lower oil and commodity chemical prices was partly offset by a 27% weaker average rand US dollar exchange rate.

Headline earnings a share decreased by 17% in the year under review, from R49.75 to R41.40. The board declared a final dividend of R9.10 per share, 21% lower than the previous year.

– African News Agency (ANA)

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