Sasol reports turnover increase ahead of new operating model launch - CNBC Africa

Sasol reports turnover increase ahead of new operating model launch


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Sasol Limited is an international integrated energy and chemical company. PHOTO: Getty Images

The international integrated energy and chemical company saw revenue increase from 79.8 billion rand for the half year ended 31 December 2012 to 98.2 billion rand for the same period in 2013.

“Looking at the first half of the 2014 financial year, safe, reliable and efficient operations remain at the core of everything we do at Sasol. Coupled with ongoing operations improvements, advancements on our capital projects, and an enhanced group-wide safety focus, we continue to deliver sustainable value for all of our stakeholders,” said [DATA SOL:Sasol Limited] chief executive, David Constable.

“With July the 1st fast-approaching, we are moving full steam ahead to go live with our new operating model, which will drive streamlined management structures, cost-effective processes and meaningful savings.”

Operating profit, after remeasurement items, increased to 19.3 billion rand in 2013 from 18.2 billion rand in 2012 while finance income was up from 312 million rand to 512 million rand.

(READ MORE: Sasol appoints new executive vice president)

“Across our global operations, we are maintaining our strong cash flow generation ability,” said Paul Victor, acting chief financial officer at Sasol.

“We continue to deliver value to our shareholders through the strong performance of our businesses, the advancement of our growth projects and the execution of our progressive dividend policy. Our balance sheet remains resilient and provides a sufficient buffer for volatility.”

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Profit before tax increased from 18.5 billion rand in 2012 to 21 billion rand in 2013, cash generated from operations was up 50 per cent and headline earnings per share rose by 26 per cent to 30.19 rand, off a record base.

“We remain on track to maintain our improved operational performance. As costs are incurred to ensure plant stability and the weaker rand continues to exert pressure on our South African businesses, we expect that our normalised cash fixed costs will increase slightly above the South African PPI inflation,” Sasol said.

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“Cost reduction is a specific target within our short-term incentive scheme and, accordingly, the management team continues to focus on controllable cost elements. We anticipate that the implementation costs associated with our business performance enhancement programme, will be approximately 1.2 billion rand for the 2014 financial year. The majority of this programme's costs will be spent in the 2014 and 2015 financial years.”