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Wednesday, August 26, 2009
From Creamer Media in Johannesburg, I'm Amy Witherden.
Making headlines today:
The strengthening of Brent crude oil and other product prices during June, higher refining margins, and greater positive stock effects have prompted petrochemicals firm Sasol to issue a more positive earnings outlook for the year ended June 30, 2009.
After warning in June that its earnings per share (EPS) and headline earnings per share (HEPS) were expected to decline by between 40% and 50%, Sasol announced yesterday that its EPS is now only likely to decline by between 37% and 42%, while its HEPS will likely only decline by between 32% and 37%.
Sasol says that the negative effect of the stronger rand/dollar exchange rate was less than anticipated, while strengthening oil and chemical prices have exceeded its expectations.

It is still unclear whether the R25,4-billion Gautrain rapid rail project will be completed in time for the 2010 FIFA World Cup. Gautrain Management Agency (GMA) CEO Jack van der Merwe says that the Bombela consortium responsible for the project's construction, has indicated that it might be technically feasible to complete the project in time for the June 11 kick-off, but that this is not a certainty.
The project's first phase, linking OR Tambo International Airport and Sandton, is not contractually scheduled to be completed until the end of June 2010. However, government has previously indicated the need to complete the project in time for the global sports event.
Van der Merwe says that it seems as if Bombela will be able to tell GMA in mid-October whether it will be able to finish phase one in May next year.

Also making headlines:
a.b.e Construction Chemicals boosts its financial year earnings by 20%.
The South African oil industry wants competition exemption ahead of the 2010 FIFA World Cup to make fuel more affordable.
Construction material group Illiad expects 2009 to remain tough financially.
And, MTN advises shareholders that it expects an increase of between 19,8% and 24,8% in basic headline earnings a share and attributable earnings a share for the six months ended June.
That's a roundup of news making headlines today. For more on these and other stories, please visit engineeringnews.co.za.