South Africa

Opening Bell – Sasol expects to quadruple earnings

• 4 August 2022

Sasol released guidance for its full-year audited results, and it expects a significant increase in earnings per share (EPS), increasing to roughly R62 from R14 last year.

The company attributes this to more favourable prices of oil and chemicals, despite its headwinds with operational integration in South Africa that led to lower production volumes.

Here is the biggest news of the day.

  • Sasol expects to quadruple in earnings per share. The company released a trading statement with an expected EPS increase from R14.57 to around R62. Adjusted EBITDA is expected to increase 46%, from R48.4 billion to around R70.8 billion. The company is due to release its audited full-year results on 23 August.
  • Glencore announced a large increase in revenue and earnings per share. Revenue for the half-year was US$ 134 million, up from US$ 94 million last year. EPS was €1.48, up from €0.54 last year.
  • Mondi announced a large increase in revenue and earnings per share. Revenue for the half-year was (Euro) €4.5 billion, up from €3.3 billion last year. EPS was $0.92, up from $0.10 last year.
  • Bain received a 3-year ban from the UK government for its role in the state capture of the South African Revenue Service (SARS). The company is not allowed to tender for any UK government contracts for the period.
  • Hulamin CEO, Richard Jacob will retire on 30 September 2022. His role will be fulfilled by independent, non-executive board member Geoff Watson.
  • Ebay beats expectations. Earnings per share (EPS) for the quarter came in at $0.99 versus the expected $0.89, and is flat from last year. The reported revenue of $2,4 billion beat the expectation of $2.36 billion but is still down $0.25 billion from last year.
  • Under Armour cut its profit outlook for 2023. EPS guidance was cut from around $0.81 to around $0.64. Still, the company met expectations for the first quarter of its fiscal year 2023, with EPS of $0.03 and revenue of $1.35 billion. There was margin compression due to marketing promotions of its athletic apparel, and while revenue has remained flat, EPS decreased from $0.24 last year.

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