Sasol beats analyst forecasts
Sasol [JSE:SOL] said it expects its headline earnings for the 12 months to the end of June to be “between 14% and 19%” lower than last year, says
IOL. On a per share basis, this brings headline earnings down “between R8.42 and R11.43”.
This drop in profits is “less than analysts estimated” following a hefty fall in oil prices over the period, reports
BDLive. This led shares to rise “the most in more than three months”.
Over the period, Sasol has been on a drive to cut costs in a bid to offset the fall in the oil price, says
Bloomberg. This includes delaying “plans to build a US gas-to-liquids plant” at a cost of around $14 billion.
The company “makes about 40% of its earnings from oil,” notes
iAfrica. The fall in the oil price has had a big impact on Sasol’s profitability.
Sasol offset a dip in the oil price by boosting production and sales
Helping Sasol out over the period was a “strong operational performance,” says
IOL. This includes a rise in “production and sales volumes at most of its units”,
On release of the trading update this morning, shares in Sasol rose “as much as 4.2% to R429,” adds
BDLive.
At time of writing, shares in Sasol were trading 2.09% higher at R430.02.
Its results are due for release on 8 September.
So in spite of analysts expecting a poorer financial performance from Sasol due to the lower oil price, Sasol has managed to perform better than expected.
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