We had a trading statement from Sasol this morning, Trading Statement For The Financial Year Ended 30 June 2015. Given the slide in the oil price their HEPS are expected to be down 14% and 19%, with normalised basic earnings expected to be down 26% to 31%. The numbers are better than the market was expecting, the stock is up 4% this morning. The weaker Rand has been a good hedge for the company helping slow the drop in the Rand cost of oil.
The only concern is that for the last financial period the average price of Brent was $73.46 a barrel. The first month and a bit of this financial year has seen the oil price closer to the $50 a barrel mark currently at $49.89 a barrel. Going forward the forecast is for the oil price to stay in this region if not fall further in the short run. What will the average oil price be next year this time? Where will the Rand be? No one knows but if it is at current levels Sasol's earning will be down again. We will have to wait until the 7 September to see the final results. Chat then folks.