Sasol flags decline in half-year profit

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South Africa’s Sasol on Friday said it expects its half-year profit to decline by as much as 42% due to weaker oil and petrochemical prices and persistent infrastructure problems in Africa’s most advanced economy.

Sasol, the world’s biggest producer of fuels and chemicals from coal and gas, said it sees headline earnings per share (HEPS) between 17.90 rand and 22.22 rand ($0.9445-$1.17) in the six months to Dec.31, compared to 30.90 rand previously.

While the company noted some operational improvements in South Africa, it said the underperformance of state-owned utilities involved in its value chain and a weaker global growth outlook continue to impact its business.

Sasol is scheduled to release its half-year results on Feb.26.