Sasol takes R55 billion hit

Sasol said it would report a loss for the full year after the fuels company booked R55.1 billion of impairments after tax. 

The basic loss per share for the year to June 30 will be in the range of R68.82 and R71.48 compared with a profit of R14 a year earlier, the Johannesburg-based company said in a statement Monday. 

Sasol wrote down the value of its chemicals America ethane value-chain cash-generating unit by R45.5 billion net of tax primarily due to external conditions “including prolonged softer market pricing and outlook.” 

The impairment on the polyethene, chloralkali, polyvinyl chloride, and wax value chain in the African chemicals business was R3.9 billion net of tax, while the Secunda liquid-fuels refinery in South Africa took an R5.7 billion writedown. 

So-called headline earnings per share likely fell to a range of R12.28 and R21.95, representing a drop of as much as 77% from a year earlier, Sasol said. The average estimate by analysts on Bloomberg is for R40.86.