Sasol takes currency hit, and reduces dividend despite leap in after-tax profit
Sasol grew its revenue measured in dollars by 6.4% to $12.7bn. But the rand strengthening over the year to end-June translated that into a 0.3% decline to R172.4bn measured in local currency. Sasol’s headline earnings per share (HEPS) decreased by 15% to R35.15. After-tax profit, though, grew 53% to $1.6bn, or 43% to R21.5bn in local currency, Sasol said in its results released on Monday morning. The growth in profit, however, is not being passed on to investors. Sasol cut its final dividend by 14% to R7.80 per share from R9.10. Sasol also cut its interim dividend by 17% to R4.80 from R5.70, reducing its total dividend for the 2017 financial year by 15% to R12.60 from R14.80. Among the reasons for the lower dividend was the need to finance various large projects, including its Lake Charles Chemicals Project (LCCP) in the US. Sasol lowered estimated returns at the $11bn Lake Charles project. The company projected an internal rate of return (IRR) of 7%-8% at Lake Charles using “conser...
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