Sasol Limited: Financial Year end

Sasol has announced that its headline earnings per share (HEPS) for the 2014 Financial Year which ended on 30 June 2014 are to increase by between 11 and 17%, and earnings per share (EPS), for the same time frame are expected to increase by between 9 and 15% compared to the previous financial year.

Profitability

Profitability was positively impacted by:

• Synfuel production volumes of 7.6 million t, an increase of 2% despite a full shutdown.
• 97% annual utilisation rate at the ORYX GTL plant.
• Normalised cash fixed costs slightly below market inflation.
• 17% weaker average Rand/US$ exchange rate.

Profitability was negatively impacted by:

• Large increase in the share based payment expense of Rand 3.6 billion due to a 47% higher share price.
• Impairment charge, as previously reported, of Sasol’s Canadian shale gas assets of Rand 5.3 billion.

Company performance

Sasol Synfuels reported a strong performance, with production volumes increasing by 2% to 7.6 million t for the Financial Year. This exceeded the previous guidance that was set by Sasol of 7.3 – 7.5 million t. The ORYX GTL plant performed exceptionally well, with an average utilisation rate of 97% for the Financial Year. The business performance enhancement programme is reportedly performing well following decisive management actions introduced to ensure cost discipline and focused cost reductions.

Financial performance was supported ay a 17% weakening of the average rand/US$ exchange rate, and an improvement in chemical prices. The average Brent crude price remained relatively flat for the period.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/11082014/sasol-2014-fy-end-results/