South Africa's Sasol said its profits for the six months ended 31 December 2009 declined by 51% due to lower average crude oil prices and chemical product prices.
During this period last year the average oil price was positively impacted by the effect of the oil hedges, resulting in a net gain of R5.1bn ($711m), the company said.
Challenging economic conditions, significantly lower product prices and a stronger rand/US dollar exchange rate were to blame for this sharp decrease, according to Sasol chief executive Pat Davies.
Sasol chief financial officer Christine Ramon said the company's cash position remained strong, protecting it against short-term volatility.
"We continue to plan prudently for a slow and volatile period of economic recovery. We will maintain a flexible approach to our capital expenditure programme to deliver long-term acceptable returns to shareholders," Ramon said.
Cash flow generated by operating activities was R9.2bn ($1.2bn), 70% lower than the prior year's comparable period, due to reduced operating profits and increased working capital.
