Sapa
1 minute read
9 Mar 2015
1:33 pm

Sasol headline earnings 6 percent up

Sapa

Sasol on Monday posted a six-percent increase in headline earnings to R32 per share, buoyed by higher sales and chemical prices.

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

The petrochemicals company said profits from operations increased by 39 percent in the past six months despite lower oil prices.

Sales of performance chemicals were up five percent and sales of base chemicals rose by one percent in the same period.

Earnings per share increased by 53 percent to R32.04 but due to net once-off charges, movements in share-based payment expense and lower unrealised profit in inventory, earnings attributable to shareholders decreased by 23 percent.

Sasol said it was implementing previous signalled plans to revise its dividend policy to a dividend cover range, which would be based on headline earnings per share.

The company declared an interim dividend of R7 per share — which amounted to a cut of 12.5 percent — to save cash in a volatile environment.

It said its annual costs savings target increased to at least R4.3 billion.

Said Sasol president and CEO David Constable: “The changes made to our business since 2011 have resulted in a more effective and cost-conscious organisation.

“With oil prices moving dramatically lower over the last six months the management team has formulated a comprehensive response plan to conserve cash and further refine our organisational structures and near-term strategies.”