Sasol Says $3 Billion of Impairments Will Hit Its Earnings

Sasol, which manufactures liquid fuels from coal, reported issues throughout its South African operations earlier this year.

South African fuel and chemical maker Sasol Ltd. said 55.1 billion rand ($3 billion) of impairments at its American and South African businesses will hurt its full-year earnings.

The basic loss per share for the year to June 30 will be in a range of 68.82 rand to 71.48 rand compared with profit of 14 rand a year earlier, the Johannesburg-based company said in a statement Monday.

Sasol wrote down the value of its Chemicals America ethane value-chain unit by 45.5 billion rand net of tax, primarily due to external conditions “including prolonged softer market pricing and outlook.”

The impairment on its polyethylene, chlor-alkali and polyvinyl chloride and wax value chain in the Africa chemicals business was 3.9 billion rand net of tax, while the Secunda liquid-fuels refinery in South Africa took a 5.7 billion-rand writedown.

Sasol, which manufactures liquid fuels from coal, reported issues throughout its South African operations earlier this year.

So-called headline earnings per share likely fell to a range of 12.28 rand and 21.95 rand, representing a drop of as much as 77% from a year earlier, Sasol said. The average estimate by analysts on Bloomberg is for 40.86 rand.

Source:norvanreports.com

basic losspolyethyleneSouth African fuel and chemical maker Sasol Ltd