JOHANNESBURG - A large swathe of the profits of fuel and chemical giant Sasol have evaporated.
While a generally stronger rand and lower fuel prices have been good for South African consumers, the combination has been disastrous for Sasol.
It's synthetic fuel prices move in tandem with global oil prices.
In a company update, Sasol has revealed its half-year earnings have dropped by about 99 percent.
But this measure includes write-downs relating to problematic assets.
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Headline earnings per share are better but are still expected to by between 29 and 40 percent.
Sasol has written down R3-billion spent on its Secunda liquid-fuels refinery which has been fully impaired, meaning it’s seen to hold no value as an asset.
Secunda produces dirty fuel which means its days are numbered.
Sasol also wrote down nearly R4-billion due to delays in being able to extract gas and sell or monetise it in Mozambique.