Sasol’s Sales Soar - Africa’s premier report on the oil, gas and energy landscape.

Sasol’s Sales Soar

Sasol says its earnings for the 2012 financial year is expected to grow by about a quarter of last year’s.
Africa’s largest privately owned producer of petroleum and related products plans to publish its financial results for the 2012 financial year on September 10.
Sasol produces petrochemicals and petroleum products from South African coal and Mozambican gas, invests in Coal To Liquid and Gas To Liquid projects around the world and runs an upstream E&P subsidiary which
produces crude oil inWest Africa. It has, of late been putting money and effort in shale gas assets in North America.
The company’s headline earnings per share (HEPS) for the year ended June 2012 were expected to increase by between 20% and 30%, while earnings per share (EPS) would rise by between 14% and 24% year-on-year.
“Profitability for the financial year ended June 2012, compared to the previous financial year, has improved owing to an overall solid production performance,” the JSE-listed company said in a statement.
A 17% increase in the average brent crude oil price and an 11% weakening of the rand/US dollar exchange rate have contributed to the improvement.
An impairment of $119MM and depreciation of $161MM have partially offset its production in respect of its Canadian shale gas assets, where it has been more conservative in the valuation and depreciation, ahead of our  future gas-to-liquids (GTL) investment decision.
Sasol also lowered its long-term North American gas price estimate, to take cognisance of the unpredictability relating to the current oversupply of gas and the resultant potential impact on the long term North American gas market.
“We remain committed to developing the Canadian shale gas assets andwill reassess our position once we have taken a GTL investment decision in North America.We would continue to review the valuation of these assets in light of changes in the North American gas prices.
Sasol remains a strong cash generator and maintains a solid financial position,” the company stated.

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