Sasol crashes into loss with R55bn in write-downs
Headline earnings per share expected to be 59% to 77% lower
Sasol reported R55.8 billion in write-downs, largely due to a R45.5 billion impairment on its Chemicals America ethane value chain cash-generating unit.
Chemicals and energy giant Sasol yesterday reported an annual loss for the year ended in June, driven by over R55 billion in write-downs amid challenging market conditions.
Sasol expects earnings to nosedive, with the basic loss per share anticipated to be between R68.82 and R71.48, compared to earnings of R14 per share in the year prior. Headline earnings per share are expected to be between 59% and 77% lower at between R12.28 and R21.95 per share, amid continued pressure from depressed chemicals prices and constrained margins, Sasol said.
The company reported R55.8 billion in write-downs, largely due to a R45.5 billion impairment on its Chemicals America ethane value chain cash-generating unit. Ethane is mostly used to make ethylene, a feedstock for plastics.
It also noted an R3.9 billion impairment on its Chemicals Africa's polyethylene, chlor-alkali and polyvinyl chloride and wax value chain cash-generating unit. The write-downs are primarily driven by external conditions, including prolonged softer market pricing and outlook.
Sasol said it benefitted from the stronger rand oil price, improved refining margins and higher sales volumes, while a stronger operational performance in the fourth quarter contributed to an overall stronger performance in the second half of the year.
The group will present its full-year results on 20 August.
The Sasol share price was about 3% lower yesterday morning and has roughly halved in the past year.
- News24
Sasol expects earnings to nosedive, with the basic loss per share anticipated to be between R68.82 and R71.48, compared to earnings of R14 per share in the year prior. Headline earnings per share are expected to be between 59% and 77% lower at between R12.28 and R21.95 per share, amid continued pressure from depressed chemicals prices and constrained margins, Sasol said.
The company reported R55.8 billion in write-downs, largely due to a R45.5 billion impairment on its Chemicals America ethane value chain cash-generating unit. Ethane is mostly used to make ethylene, a feedstock for plastics.
It also noted an R3.9 billion impairment on its Chemicals Africa's polyethylene, chlor-alkali and polyvinyl chloride and wax value chain cash-generating unit. The write-downs are primarily driven by external conditions, including prolonged softer market pricing and outlook.
Sasol said it benefitted from the stronger rand oil price, improved refining margins and higher sales volumes, while a stronger operational performance in the fourth quarter contributed to an overall stronger performance in the second half of the year.
The group will present its full-year results on 20 August.
The Sasol share price was about 3% lower yesterday morning and has roughly halved in the past year.
- News24
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