Sasol expects 11%-17% increase in FY HEPS - CNBC Africa

Sasol expects 11%-17% increase in FY HEPS

Earnings

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Sasol is an energy and chemicals firm based in South Africa. PHOTOS: Getty Images/First African Holdings

Earnings per share are also expected to grow by between 9 per cent and 15 per cent for the year ended 30 June 2014, compared to the prior financial year.  

[DATA SOL:Sasol Limited] is an integrated energy and chemical company headquartered in South Africa, with a presence in various African countries, Canada, the United States, the United Kingdom and Australasia.

(WATCH VIDEO: Sasol, one of S.Africa's success stories)

“Sasol’s profitability for the 2014 financial year was positively impacted by Synfuels production volumes of 7.6 million tons, up by 2 per cent despite a full shutdown, a 97 per cent annual utilisation rate achieved at the ORYX GTL plant, normalised cash fixed costs slightly below market inflation, [and a] 17 per cent weaker average rand/ US dollar exchange rate,” Sasol said in a statement.

Production volume for Sasol’s Synfuels increased by 2 per cent to 7.6 million tonnes for the year, having exceeded the firm’s previous guidance of 7.3 to 7.5 million tonnes. Sasol’s ORYX GTL facility had an average utilisation rate of 97 per cent for the financial year.

“Our share price increased by 47 per cent over the financial year to a closing price on 30 June 2014 of 63.36 rand. This resulted in a substantial year-on-year increase in the long-term employee share-based payment expense of 3.6 billion rand,” Sasol explained.

(READ MORE: Sasol to develop Mozambique's first GTL plant)

There was however a significant increase in the share-based payment expense of 3.6 billion rand due to a 47 per cent higher share price, as well as an impairment charge, as previously reported, of Sasol’s Canadian shale gas assets of 5.3 billion rand, equivalent to 540 million Canadian dollars.  

“Following decisive management actions introduced last year to ensure cost discipline and focused cost reductions, our business performance enhancement programme is progressing well with our normalised cash fixed cost trend slightly below market inflation and ahead of our previous guidance,” said Sasol. 

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