Sasol Limited reports developments tied to its global chemicals and energy operations, including integrated production in Southern Africa and its International Chemicals business. Recurring updates cover operating and financial results, production performance at Secunda Operations, coal quality, gas and condensate logistics, cost and capital spending discipline, and product supply across energy and chemical value chains.
Company news also includes capital-structure actions by Sasol Financing USA LLC, including cash tender offers and senior note activity, as well as shareholder voting matters, board changes, governance updates, safety performance, and business outlook disclosures.
Sasol Chemicals and LOTTE Chemical are conducting a pre-feasibility study to build a facility for producing battery-grade electrolyte solvents, essential for lithium-ion batteries used in electric vehicles. The study will evaluate locations in Lake Charles, USA, and Marl, Germany, leveraging feedstock from Sasol and proprietary technologies from both companies. The initiative aims to meet increasing battery demand while focusing on sustainability and minimizing carbon footprints through renewable energy usage.
On May 24, 2022, Sasol (NYSE: SSL) announced the launch of the CARE-O-SENE project in Johannesburg, aiming to develop advanced catalysts for sustainable aviation fuels (SAF). Funded by the German Federal Ministry and Sasol, this three-year initiative involves key partners, including Helmholtz-Zentrum Berlin and several research institutions. Aimed at commercializing green kerosene production by 2025, the project utilizes Fischer-Tropsch technology to enhance fuel yield over 80%. This collaboration seeks to support the aviation sector's decarbonization efforts.
Sasol ecoFT has signed a letter of intent with Sollefteå municipality and Uniper to explore building a sustainable aviation fuel production facility in Sweden. The project, under the joint venture SkyFuelH2, aims to utilize green hydrogen and biomass carbon using Sasol's Fischer-Tropsch technology. The selected site in Långsele is optimal due to its renewable energy supply and land availability. Fleetwood Grobler, CEO, emphasizes their commitment to sustainable fuel production. The initiative is viewed as pivotal for the aviation industry's green transition.
Sasol Ltd. (NYSE: SSL) has entered a partnership with Holiferm Limited to develop and commercialize new biosurfactants, specifically sophorolipids. Sasol will purchase the majority of these biosurfactants from Holiferm's upcoming UK manufacturing facility, slated to begin operations in early 2023. This collaboration aims to address the rising demand for sustainable surfactants, utilizing bio-based raw materials to significantly reduce carbon footprints. Financial terms of the agreement remain undisclosed.
Sasol Chemicals announced that its Brunsbüttel manufacturing facility in Germany now sources all its external electricity from renewable sources. This milestone, achieved through a power purchase agreement with MTB new energy, reflects the company's commitment to sustainability. The facility aims for a 30% reduction in greenhouse gas emissions by 2030 as part of Sasol's broader goal of reaching net zero by 2050. The plant, located 80 km northwest of Hamburg, produces various organic and inorganic products for multiple industries.
Sasol has sold its German subsidiary, Sasol Wax GmbH, to AWAX s.p.a., a global leader in wax production, effective March 1, 2022. This sale aligns with Sasol's strategy to streamline its portfolio by focusing on core assets. Notably, the South African Fischer-Tropsch hard wax business will remain with Sasol. AWAX aims to leverage Sasol Wax's advanced hydrogenation facility to enhance its technological leadership in the wax market. The transaction reflects Sasol's commitment to repositioning itself within the energy and chemical sectors.
Sasol Limited reported its interim results for the six months ending December 31, 2021, showcasing a 12% increase in EBIT to R24.3 billion. This growth was driven by higher crude oil and chemicals prices despite operational challenges at Secunda Operations. Notably, total assets rose 9% to R394.2 billion, while total liabilities reached R221.6 billion, representing a 6% increase. However, headline earnings fell 20% to R9.5 billion. The company opted not to declare an interim dividend amidst macroeconomic uncertainties. Management changes were announced in the mining and energy sectors.
Summary not available.
Sasol is anticipating a mixed financial performance for the half-year ending December 31, 2021, mainly due to better Brent crude oil prices and refining margins. Adjusted EBITDA is projected to rise by 66% to 76%, reaching between R30.9 billion and R32.7 billion. However, lower sales volumes for chemicals and energy have partially offset these gains. Earnings per share are expected to range between R22.81 and R25.15, with headline earnings per share decreasing by 16% to 26%. Notable non-cash adjustments include unrealised losses of R4.9 billion on financial instruments.
Sasol has released production and sales performance metrics for the six months ending December 30, 2021. The report is available on its website under the Investor Centre section. Sasol highlights the potential impacts of COVID-19 on its operations and emphasizes forward-looking statements regarding business strategies, capital investments, and sustainability efforts. The company is focusing on mitigating risks, optimizing operations, and pursuing low-carbon initiatives. Investors are encouraged to review the full report for comprehensive details on performance metrics.