S Africa's Sasol H1 profit to dip on Iran unit impairment

08 February 2013 07:29  [Source: ICIS news]

SINGAPORE (ICIS)--Sasol’s earnings per share is expected to fall by 10% to 20% in the six-month period ending 31 December last year, weighed by the impairment of its investment in Iran’s Arya Sasol Polymers Company (ASPC), the South African firm said on Friday.

“The investment was impaired by South Africa Rand (R)1.97bn ($221m) based on our assessment of the fair value of the asset, which takes into account the uncertainty associated with the Iranian environment in which we operate,” the company said.

While the company’s profitability for the period has benefited from improved production and the weakening of the average rand/US dollar exchange rate, the gains has been “largely offset” by the weaker average Brent crude oil price, lower chemical prices and squeezed margins, it added.

Arya Sasol Polymer is a joint venture between Iran’s state-owned National Petrochemical Company (NPC) and Sasol.

($1 = R8.92)

By: Nurluqman Suratman

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