David Constable
Photo by: Duane Daws
South African energy and chemicals group Sasol reported a 13% rise in earnings attributable to shareholders to R29.6-billion for the year ended June 30, 2014, despite write-downs of R7.6-billion during the period.
The group, which reported an operating profit of R41.7-billion on revenue of R202.7-billion, attributed the performance to better operational results, the weaker rand and an improvement in chemical prices.
Synfuels production volumes rose to 7.6-million tons, which the JSE-listed group said was the highest output in a decade. The rand:dollar exchange rate was 17% weaker during the period, while the average Brent crude oil price was flat.
CEO David Constable said restructuring efforts undertaken over the past three years had set the scene for a “more efficient, effective and competitive organisation”.
He added that the compounded annual growth rate of headline earnings a share had increased by 21%, and dividends by 18%, over the period. The Sasol board declared a record final dividend of R13.50 a share.
Earnings were negatively impacted by “remeasurement items” of R7.6-billion, which included the R5.3-billion impairment of its Canadian shale-gas assets and the R466-million partial impairment and final loss on disposal of R966-million of its solvents assets in Germany.