JOHANNESBURG – Petrochemicals giant Sasol lost 2 percent on the JSE in early trade yesterday on lower-than-expected interim profit.
The JSE-listed chemicals and energy company expects headline earnings to increase by between 12 and 29 percent in the half year to September on higher Brent crude prices, it said in its trading update yesterday.
“Sasol is expected to deliver a solid set of results, underpinned by higher Brent crude oil and product prices, a weaker average rand exchange rate, a satisfactory performance of its global assets and much lower remeasurement items during the six months ending December 31, 2018.”
It also expects underlying cash flow performance and earnings to be much stronger than the period ended December 31, 2017. However, an analyst, who declined to be named, said the share price was down amid disappointment on the headline earnings.
“Most people expected much higher headline earnings in the second half given that the rand was weaker,” the analyst said yesterday.