South African energy giant Sasol has entered into hedges to mitigate financial risks next year, which covers the oil price, IOL informed.

Oil put options provide the company with an average Brent crude oil price floor of $48.68/b net of costs, for approximately 7.6m barrels, reported Reuters.

The company adds it has also entered into put options for the third quarter and a part of the fourth quarter of financial year 2017, which provide it with an average Brent crude oil price floor of $47.06/b net of costs for about 16.8m barrels.

Sasol explains it has a board-approved policy on hedging of financial risks, which allows it to mitigate specific risks and provide protection against unforeseen movements in interest rates, currency movements, commodity and final product prices. The company added it is currently reviewing other commodity and currency hedges.