Johannesburg. – Sasol Ltd, the world’s biggest coal-to-liquid fuel producer, said profit climbed 13 percent after synthetic-fuels output advanced and the rand weakened.
Net income rose to R29,6 billion ($2,75 billion) in the 12 months through June, from R26,3 billion a year earlier, the Johannesburg-based company said in a statement today.
Earnings per share excluding one-time items increased 14 percent to R60,16, missing the average R60,99 estimate of nine analysts surveyed by Bloomberg.
“Underpinned by a solid operational performance, ongoing business improvements, and strengthened stakeholders relations, Sasol has outperformed our previous best efforts,” chief executive officer David Constable said in the statement.
Sasol revenue is linked to the dollar price of oil, which averaged 9,8 percent higher during the period than a year earlier.
About three-quarters of the company’s operating profit came from South Africa, where the rand was 15 percent weaker against the dollar over the 12 months.
Sasol shares advanced as much as 1,8 percent and traded 1,2 percent higher at R644,73 in the morning in Johannesburg. The stock is heading for a sixth day of gains, the longest winning streak since March 7. The company proposed boosting its final dividend to R13,50 a share from R13,30.
Production Gains
Synfuels production rose 2 percent to 7,6 million metric tons, compared with a forecast of 7,3 million to 7,5 million tons, the company said on August 11.
A 97 percent annual utilisation rate achieved at the Oryx gas-to-liquids plant in Qatar also boosted profit, Sasol said last month.
The company may be affected as the government projects growth in the South African economy to slow to 1,8 percent this year, the lowest since a 2009 recession.
“South Africa’s economic outlook remains challenging as the country is still recovering from a five-month long strike in the platinum sector, with business consumer confidence levels remaining low,” the company said.
“While our oil and exchange rate views are largely unchanged, there is an increased risk that global geopolitical tensions and the start of the rate normalization in key global economies could see higher financial market volatility.” – Bloomberg.