South African Sasol Records 24% Profit Decline

South African Sasol Records 24% Profit Decline

South African petrochemicals company Sasol said its earnings in the first-half of the current fiscal year dropped by 24% amid low oil prices and the company will cut its interim dividend by almost 19% , Reuters reported. In its saving plan, Sasol has focused on cash conservation to contend with depressed oil prices, and has recorded cash saving of $702m over the targeted period.

Sasol added that its profitability was adversely affected by a 47% lower average Brent crude oil price during the fiscal half year, although the effect of lower oil and commodity chemical prices was partly offset by a 24% drop in the average exchange rate – South African currency rand to US dollar – during the period, BDLive reported.

Sasol mulls reviewing the cost and timing of its $8.9b chemicals plant investment in the US due to sustained slump in oil and chemical prices, according to Bloomberg. In addition, the company will re-assess its long-term strategic interest in its Uzbekistan gas-to-liquids investment, a review is expected to be completed in the second half of the 2016 financial year, Eye Witness News reported.

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