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Investing.com -- Sasol Ltd (JO:SOLJ) shares jumped more than 9% on Tuesday after the South African energy and chemicals group projected fiscal 2025 earnings ahead of market forecasts, boosted by one-off gains including a R4.3 billion Transnet settlement.
The company guided EBITDA to between R50 billion and R54 billion, a 10% to 17% decline from last year but above Bloomberg consensus of R46.7 billion and Morgan Stanley’s estimate of R50.2 billion.
Headline earnings per share are expected at R33.60 to R36.30, up 85% to 100% from a year earlier, exceeding consensus forecasts of R28.63 from Bloomberg and R27.92 from Visible Alpha.
The uplift was driven by non-recurring factors. In addition to the Transnet settlement, Sasol cited a R2.9 billion reduction in asset rehabilitation provisions and R2 billion in unrealised translation and valuation gains.
Most of these are included in both EBITDA and HEPS, except the unrealised gains, which are excluded from EBITDA but factored into HEPS.
The company also reported higher average chemicals basket prices and tighter cost control as supporting factors.
Basic EPS is expected at R7 to R12, more than doubling year on year, but reflects R20.7 billion in impairments before tax.
These include R13.1 billion at the Secunda and Sasolburg liquid fuels refinery, which remains fully impaired; R4.4 billion linked to Mozambique gas PSA and PT5-C exploration due to a higher weighted average cost of capital and lower gas volumes; and R3.2 billion at Care Chemicals.
Sasol also recorded a R1 billion impairment reversal at China Care Chemicals.