Sasol is on the upswing

Article Excerpt

SASOL LTD. (ADR) $33.41 (New York symbol SSL; Extra Risk) (082-883-9697; www.sasol. com; ADRs o/s: 653.0 million; Market cap: $22.4 billion; Dividend yield: 3.6%) is South Africa’s third-largest coal producer and is the world’s largest maker of fuel from coal. It also produces chemicals and oil and gas. Poor economic conditions in South Africa are a risk factor for the company. They hurt overall demand for Sasol’s products. A much stronger South African rand against the U.S. dollar also hurts the contributions of the company’s U.S. operations. However, for the first half of fiscal 2018, ended December 31, 2017, Sasol expects to report a 12% to 17% jump in earnings per ADR. The gain is due to its improved operational performance, higher prices for crude oil and increased demand for its specialty chemicals. Sasol ADRs are a buy. buy…