Sasol swings to profit on higher chemical prices, lower writedowns

By Reuters

South African petrochemical firm Sasol said on Monday it swung to an annual profit on the back of higher chemicals prices, tighter cost controls and lower asset writedowns.

The company, which produces fuel and chemicals from coal and gas, posted basic earnings per share of R10.60 ($0.6070) for the year ended June 30, compared to a R69.94 loss per share last year.

Sasol also benefited from a R4.3 billion payout from Transnet, after it claimed in a legal suit the state-owned logistics firm had overcharged for oil transportation over several years.

The company said its turnover fell 9%, mainly due to lower sales volumes and reductions in rand oil prices and refining margins.

However, it managed to keep cash fixed cost increases below inflation, while capital expenditure of 25.4 billion rand was 16% lower than the previous year.

Sasol also recorded significantly lower impairments of 20.7 billion rand, compared