Johannesburg – Embattled chemicals group Sasol said on Friday it expects profits for its year to end-June to fall by at least a fifth as it feels the effect of a declining oil price.
Sasol is the producer of oil from coal, and prices of fuel have plummeted I 2020 due to a combination of a price war between Russia and Saudi Arabia and plummeting demand due to the coronavirus outbreak.
The group said Headline earnings per share (Heps) are expected to decrease by 20%, in comparison with Heps of R30.72 for the financial year ended June 2019.
Sasol will give a detailed trading update in the coming weeks.
In the morning trade on Friday Sasol’s share price was 5.54% lower at R79.50, putting it on track for its worst one-day performance in more than two weeks.