COMPANIES
Sasol falls despite earnings outlook
Posted Thu, 01 Dec 2005
Sasol said in a trading update on Wednesday it expects headline earnings per share for the six months to December 2005 to be between 65 percent and 75 percent higher than the year earlier period.
When the petrochemicals company announced its results in September 2005 for the financial year ended June 2005, it commented: "International oil and commodity chemical markets and prices are unstable and so forecasting these with confidence is not possible. Nevertheless, assuming no major disruptions in world currency and energy markets, we anticipate satisfactory growth in earnings in the year ahead."
During the intervening months, international oil prices have been nearly 25 percent higher than anticipated, the rand/dollar exchange rate has been weaker than expected and pleasing plant efficiencies and operating rates have generally been achieved.
As a result, the group said its financial results
for the six months ending December 2005 are forecast to be better than anticipated when the previous public announcement was made.
However, shares tumbled 4.79 percent on Wednesday on the group's warning that the petrol price was expected to fall in the second half, which would affect profit.
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