Johannesburg, Feb 5 – South African petrochemical firm Sasol (SOLJ.J) expects a sharp decline in its half-year earnings due to weaker oil prices and lower sales volumes.
The company projects headline earnings per share (HEPS) to range between 13 rand and 15 rand ($0.70-$0.80) for the six months ending December, down from 20.37 rand in the same period last year.
Sasol said the decline is mainly due to a 13% drop in the average rand Brent crude oil price per barrel, along with weaker refining margins and fuel price differentials. A 5% decrease in sales volumes, driven by lower production and subdued market demand, has also weighed on earnings.
The company will release its detailed financial results on February 24.
