Sasol Ltd Ord Stock Price, News & Analysis

Sasol Limited reported mixed results for the six months ended December 31, 2022, with EBIT of R24.2 billion, consistent with prior period performance. The results were supported by high pricing despite lower volumes and rising input costs, influenced by global economic challenges and depressed chemical prices. Key metrics include adjusted EBITDA of R31.995 billion and headline earnings of R19.389 billion. An interim dividend of 700 cents per share was declared. Remeasurement impacts included impairments totaling R9.9 billion across multiple cash-generating units. The company continues to prioritize safety and operational stability.

Sasol reported mixed results for the first half of 2023, with EBIT of R24.2 billion, consistent with the previous period, buoyed by strong pricing despite lower volumes and input cost pressures. Positive performance was noted in chemicals due to R5.1 billion gains from financial instruments, but losses from impairments totaling R9.9 billion were also reported. Headline earnings surged over 100% to R19.39 billion, with basic earnings per share at R23.23. The interim dividend was declared at R7.00 per share. Factors like economic slowdown and supply chain disruptions impacted overall performance and resulted in lower volumes. The company's net asset value increased by 4.6% compared to the previous year.

Sasol is poised to report mixed results for the six months ending December 31, 2022. Key influences include strengthened oil prices and refining margins, but these were counterbalanced by weaker global economic growth and depressed chemicals prices. Earnings per share (EPS) are projected between R21.55 and R23.98, a decrease of up to 10% from the previous year. Headline earnings per share (HEPS) may range from R29.84 to R31.36, marking an over 95% increase year-on-year. Operational challenges in the Mining sector and impairments in several cash-generating units, notably the Secunda liquid fuels refinery, reflect ongoing operational difficulties amid fluctuating costs. The full results will be announced on February 21, 2023.

Sasol has released its production and sales performance metrics for the six months ending December 31, 2022. The company aims to reduce GHG emissions from South African operations by at least 30% by 2030, focusing on renewable power integration. Sasol signed three power purchase agreements for a total of 359MW of renewable wind power, supporting their green hydrogen production ambitions in Sasolburg set to commence in Q1 CY24. The Secunda operations will see two additional agreements with Air Liquide for 220MW, expected operational by 2025. These initiatives mark progress toward Sasol's target of 1,200MW renewable energy capacity by 2030.

Sasol has released its production and sales metrics for the six months ending December 31, 2022. The company aims to reduce GHG emissions from its South African operations by at least 30% by 2030, based on 2017 levels. To support this, Sasol signed three power purchase agreements for renewable energy, including a long-term agreement for 69MW of wind power for Sasolburg operations, expected to start in early 2024. In collaboration with Air Liquide, two additional contracts for 220MW of wind power at Secunda operations are set for 2025. These steps reflect Sasol's commitment to a sustainable energy transition.

Sasol Limited announced the launch of a US$750 million offering of guaranteed senior unsecured convertible bonds, set to mature in 2027. The bonds are expected to pay a coupon of 4.0% to 4.5% per annum, with the proceeds primarily aimed at refinancing debt. The initial conversion price will be 30% to 35% above the average share price at the time of pricing. A general meeting for shareholder approvals will be convened within 14 months after the closing date on November 8, 2022. The bonds will trade on the Frankfurt Stock Exchange.

Sasol Limited has received approval from JSE Limited for its ZAR 15,000,000,000 Domestic Medium-Term Note Programme Memorandum. This memorandum is accessible for inspection at the Issuer's registered office and on the Company's website. Investors can find additional details on the JSE's website. For inquiries, investors can contact Tiffany Sydow, the Investor Relations Officer, at +27 (0) 71 673 1929 or via email at investor.relations@sasol.com.