The South African petrochemicals major, Sasol, posted a 13% rise in annual profit on Wednesday as better operations in the second half offset the impact of weaker crude prices.
The company stated that its headline earnings per share (HEPS), a measure of profit, were 53.75 South African cents for the 12 months ended on June 30, up from 47.58 cents posted a year ago.
However, its basic earnings per share, which include one-off costs, were down by over three-fourths, mainly due to a substantial impairment at its flagship plant.
As the world’s largest producer of fuel products and chemicals from coal and natural gas, the company announced a R35-billion impairment charge at its primary facility, Secunda, last week. This impairment was attributed to higher interest rates and emission reduction costs.
This impairment comes amid the company’s efforts to become more environmentally friendly and reduce its carbon footprint to meet its 2050 net-zero commitment.
