Sasol

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 US 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-bn. "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 re-prioritised capital expenditure for the next 2 years to about R15-bn 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.