Sasol flags an improved performance


Sasol flags an improved performance


Published Date: 2021-04-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sasol flags an improved performance

The energy and chemicals group has repositioned itself for sustained profitability in a low oil price environment.

Sasol will report a smaller full-year loss following a strong recovery in demand for liquid fuels and gas as Covid-19 restrictions eased. However, it says demand for jet fuel remains constrained.

In a trading statement and production update for the nine months to 31 March, the energy and chemicals group said its integrated value chain continued to deliver a strong financial performance, benefiting from the positive macroeconomic environment, cost discipline and higher demand.

Productivity rates at its Mining division continued to trend higher than last year. However, external purchases were required to achieve planned production at Secunda Synfuels. Export coal sales improved significantly as it took advantage of higher export prices to maximise profitability.

Its midstream operations delivered a satisfactory performance , with more stable run-rates this month. At the National Refinery (Natref), together with partner Total South Africa it had reduced run rates to respond to lower market demand, whilst it ran Secunda Synfuels at full rates to maximise margins. It expected Synfuels to deliver at the lower end of 7.6 - 7.7 million tons for the full year.

In Mozambique, Sasol said it continued to maintain stable operations in its gas production business. In the downstream business, despite the cutback at Natref and lower jet fuel demand, it still expected to deliver liquid fuels sales volumes of 54-55 million barrels for the full year, in line with previous market guidance.

Total chemicals sales volumes for the nine months were 2% lower than the prior year mainly due to adverse weather events in both SA and America that impacted production, the divestiture of its US Base Chemical assets last year and the continued impact of Covid-19.

The group's earnings per share will be at least 20% narrower than the R147.45 loss it reported last year while its headline loss per share will also improve by at least 20% from the R11.79 loss previously reported. For the six months to end-December, it reported earnings of R23.41 per share and headline earnings per share of 19.16.

Sasol's shares closed 0.1% down at R251.07 yesterday.


W, Prinsloo 3 days ago

This info is really welcome and useful, and l consider myself lucky to hold a few Sasol shares. Thank you.

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