Sasol Says Remains Confident On Strong Earnings Growth In FY14

(RTTNews) - Sasol Ltd. (SSL) said Monday that it remains confident that, based on a solid business performance of the group and favourable macroeconomics, it will deliver strong earnings growth for the 2014 financial year compared to the reported attributable earnings of R26.3 billion in the 2013 financial year.

Sasol Synfuels' volumes is expected to be between 7.3 million tons to 7.5 million tons for the full year. The full year average utilisation rate at ORYX gas-to-liquids or GTL in Qatar is expected to be about 90% of nameplate capacity; and the company's shale gas venture in Canada will show marginally increased production compared to the prior year due to new wells coming on stream.

In the first three months of the 2014 financial year, the company said it has delivered solid financial results, despite the ongoing global economic uncertainty and industrial action in South Africa. Sasol Synfuels delivered a strong operational performance, despite a planned total and phase shutdown of the east factory, which took place in September 2013.

The firm stated that its ORYX gas-to-liquids operations continue to exceed its expectations and the utilisation rate for the period remained above 100% during the first three months of 2014. The company's other foundation businesses continue to perform in line with 2014 targets.

The company noted that the disposal of its investment in Arya Sasol Polymer Company or ASPC became effective on 16 August 2013. An amount of US$47 million is still outstanding from the purchaser. It is expected that the loss on the final disposal, recognised in the 2014 financial year, will be less than US$100 million, as previously communicated.

The Sasol Synfuels growth programme is on track and nearing completion. The beneficial operation of the entire programme is expected to be reached in the second half of the 2014 calendar year. The installation of the second set of gas-heated heat exchange reformers will mark the completion of the growth programme, the company said.