SacOil to Swing to Net Profit on Currency Gain, Restructuring
May 31 2016 - 03:19AM
Dow Jones News
By Alex MacDonald
LONDON--South African oil and gas company SacOil Holdings
Ltd.(SCL.JO) forecasts a swing to fiscal-year net profit,
benefiting from foreign-exchange gains and the restructuing of its
stake in a Congolese oil exploration project, in its latest trading
update.
The dual Johannesburg- and London-listed firm is required to
provide an update when it expects its earnings to rise or fall by
more than 20%.
The company said Tuesday that it expects earnings a share rose
to between 1.23 South African rand cents (0.078 U.S. dollar cents)
and 2.05 cents in the year to Feb. 29, a turnaround from a loss of
8.54 cents a share in the previous fiscal year.
Basic headline earnings share, which excludes the impact of any
re-measurements of assets or liabilities, is forecast to have risen
to between 0.57 cents and 1.51 cents a share compared with a
headline loss of 4.67 cents a share the previous year.
The depreciation of the South African rand against the dollar
resulted in a foreign-exchange gain of ZAR154.6 million, SacOil
said. The company also benefited from the reorganization of its
holding in Block III int the Congo, which resulted in a ZAR103.6
million gain.
This helped offset a ZAR26.1 million impairment on a deferred
receivable related to Block III as a result of civil unrest in the
country. The project operator, French oil major Total SA (TOT), has
since begun survey activites at the block, which has led SacOil to
determine there will be no the further deferrals of forecast
receivables.
The company also plans to write down the value of it stake in
second phase of the Lagia oil field in Egypt by ZAR76.5 million
because of low oil prices.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
May 31, 2016 03:04 ET (07:04 GMT)
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