12 September 2011 07:58 [Source: ICIS news]
SINGAPORE (ICIS)--Sasol said on Monday its chemical cluster’s full-year operating profit surged by 58.4% year on year to rand (R) 8.71bn ($1.2bn) on the back of higher product prices.
The chemical cluster’s turnover for the year ending 30 June 2011 rose by 15.8% year on year to R82.9bn, the South Africa-based energy and petrochemicals major said in a statement.
Within the cluster, the polymers division’s operating profit rose by 65% year on year to R1.58bn in the full-year period, while the operating profit at its solvents business was up by 43% at R1.66bn, the statement said.
The cluster’s olefins and surfactants business posted a 67% year-on-year rise in its operating profit to R4.16bn, it said.
The strong hike in operating profit was mainly the result of robust demand in most of the olefins and surfactants markets as well as improved margins across the division’s product portfolio, the statement said.
Other businesses within the chemicals cluster, meanwhile, saw their profit rise by 48% year on year to R1.32bn, it added.
Overall, the Sasol group posted a full-year net profit of R19.8bn, up by 24% from the previous year, while the firm’s turnover rose by 16.4% to R142.4bn, the company said.
Looking ahead, the company said that “downside risks” remain with the high funding requirements of banks and sovereign states.
“However, product prices and the demand for chemical products have shown significant improvement,” it said.
The strengthening of the rand versus the dollar remains the single biggest external factor exerting pressure on the firm’s profitability, the company added.
($1 = R7.28)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections