Sasol warns that power outages have dimmed its full-year earnings
Sasol’s earnings fell by up to 62% during its 2018 financial year, it warned shareholders in a trading statement on Friday morning.The chemicals group is scheduled to release its results for the year to end-June on August 20.The sharp drop in basic earnings is partly due to Sasol booking R11.8bn worth of once-off write-downs in its results.Its headline earnings per share (HEPS), which exclude these once-off costs, will fall by up to 26%.Sasol said Eskom outages and South Africans cutting back on fuel consumption had taken their toll on the company.The group said it was impairing its "chlor vinyls cash generating unit" by R3.7bn. This was "as a result of the continued and sustained strengthening of the exchange rate outlook and the resulting impact on base chemicals margins".It is impairing its Mozambique gas partnership by R1.2bn. Sasol said this was "due to the weaker long-term macroeconomic assumptions, as well as a result of lower than expected oil volumes".During the first half ...
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