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JOHANNESBURG (Reuters) - South Africa’s Sasol Ltd said on Friday that profit for the half year ended Dec. 31 will more than treble, boosted by its efforts to manage capital expenditure and working capital.
The world’s top manufacturer of motor fuel has been battling high debt, lower oil and chemicals prices and falling fuel demand, forcing to company to sell assets and restructure parts of its business.
Sasol forecast headline earnings per share (HEPS) for the half year to be between 18.59 rand ($1.22) and 19.78 rand compared with 5.94 rand a year ago.
HEPS is the main profit measure in South Africa.
The company said adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) - a measure of operational profit - is likely to decline by up to 10% as the rand per barrel cost of Brent crude oil slumped in the half year.
Weaker demand for motor fuel during a nationwide lockdown imposed in South Africa to curb the coronavirus outbreak also contributed to the decline, the company added.
Sasol expects EBITDA to decline between 0% and 10% to between 17.9 billion rand and 19.8 billion rand.
It will announce its half year results on Feb. 22.
($1 = 15.2615 rand)
