Low oil price drives down Sasol's earnings by 24 % - CNBC Africa

Low oil price drives down Sasol's earnings by 24 %

Southern Africa

by Trust Matsilele 0

Sasol posts headline fall in the first half of 2016. PHOTO: Wikipedia

Sasol Limited's headline earnings fell 24 percent to R24.28 in the first half of the financial year ending 31 December 2016; this is despite a nearly 50 percent fall in oil price.

The company reported earnings attributable to shareholders decreasing by 63 percent to R7.3 billion from R19.5 billion in the prior period.

Sasol is however positive and says despite the challenging macroeconomic environment, we continued to deliver a strong operational performance, with increased production volumes and cost increases contained to well below inflation.

“The decisive actions taken to reposition Sasol through our Business Performance Enhancement Programme, and our low oil price Response Plan, place the organisation in a good position to maintain a strong operational performance, despite the challenging and volatile energy landscape,” said David Constable, President and Chief Executive Officer, Sasol Limited.

“Given a ‘lower-for-much longer’ oil price scenario, we have intensified and extended the scope of our Response Plan, by derisking and rephasing certain projects, while prioritising capital for the advancement of our growth projects in Southern Africa and the United States.”  

 

 

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