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.
On July 1, 2021, Sasol Limited announced the resignation of Chief Financial Officer (CFO) Paul Victor, effective June 30, 2022. He will assist during a six-month transition period to facilitate the handover of responsibilities. Mr. Hanré Rossouw, currently CFO of Royal Bafokeng Platinum, will succeed Victor as CFO and executive director on July 1, 2022, after joining the company on April 4, 2022. Rossouw brings extensive experience in debt restructuring and corporate finance, enhancing Sasol’s leadership during upcoming business challenges.
Sasol announced the approval from the Competition Tribunal for the sale of its Air Separation Units (ASUs) to Air Liquide. This approval fulfills the last condition for the transaction, which is expected to close within 10 business days. The deal, worth R5.525 billion and EUR148.75 million, will help Sasol reduce debt. Several commitments were made regarding joint renewable power procurement and economic empowerment. The financial implications will be detailed in Sasol's 2021 annual report.
Sasol has made strides in reducing its debt following a strong operational performance, supported by favorable macroeconomic conditions and cash conservation efforts. The company aims to lower debt levels further, potentially reinstating dividend payments. Sasol has restructured its hedging program, raising the floor oil price from US$43.11 to approximately US$60.09 per barrel, while providing a cap at about US$71.97 per barrel. The hedge cover ratio has increased to 90%, covering 24 million barrels for the financial year 2022, enhancing financial stability despite ongoing oil price volatility.
Sasol South Africa Ltd has signed a sale agreement to divest a 30% interest in the Republic of Mozambique Pipeline Investments Company (ROMPCO) for an initial consideration of R4.145 billion and potential deferred payments up to R1 billion by June 30, 2024. Post-transaction, Sasol will retain 20% ownership of ROMPCO and continue its operations under existing agreements. This divestment aligns with Sasol's strategic plan while reaffirming its commitment to Mozambique's gas sector.
Sasol has released its production and sales metrics for the nine months ended March 31, 2021, and outlined a new operating model aimed at addressing the impacts of COVID-19 and fluctuating oil prices. The company anticipates an improvement of at least 20% in headline earnings per share (HEPS) and earnings per share (EPS) for the financial year ending June 30, 2021, compared to the previous year's losses. Detailed metrics and guidance can be found on the Sasol website, with full audited results scheduled for release on August 16, 2021.
Sasol Limited announced the pricing of SEC-registered US$-denominated senior notes through its subsidiary Sasol Financing USA LLC. The offering includes $650 million in senior notes due 2026 at an interest rate of 4.375% and $850 million in senior notes due 2031 at 5.50%. The total orderbook reached $4.6 billion, indicating more than a 3x oversubscription. Proceeds will be used to repay parts of an outstanding revolving credit facility, maintaining leverage neutrality. The offering is set to close on March 18, 2021.
Sasol Limited announced the pricing of US$1.5 billion in SEC-registered senior notes through its subsidiary, Sasol Financing USA LLC. This includes $650 million of senior notes due 2026 at an interest rate of 4.375% and $850 million due 2031 at 5.50%. The offering saw significant interest, with orders exceeding $4.6 billion, indicating strong market confidence. Proceeds will be used to reduce outstanding revolving credit facility balances, ensuring leverage neutrality. The offering is expected to close on March 18, 2021.
Sasol announced impressive financial results for the six months ending December 31, 2020, with earnings skyrocketing over 100% to R15.3 billion, up from R4.5 billion the previous year. The company maintained a robust cash cost and capital expenditure performance despite a 23% drop in the oil price, resulting in a 6% decline in adjusted EBITDA to R18.6 billion. Key metrics included a working capital ratio of 14.9% and basic earnings per share increasing to R23.41. Sasol aims to reduce net debt and is prioritizing the balance sheet while suspending dividends.
Sasol reported strong financial results for the six months ending December 31, 2020, with earnings surging over 100% to R15.3 billion, despite a 23% dip in oil prices. Adjusted EBITDA decreased by only 6% to R18.6 billion, aided by effective cost management. Key metrics include a working capital ratio of 14.9%, profit before interest and tax of R21.7 billion, and basic earnings per share at R23.41. The company successfully reduced its debt by R28 billion and maintained a liquidity headroom of over R53 billion. A final investment decision was made on a US$760 million Mozambique project for gas monetization.
Sandstorm Gold Ltd. announces the acquisition of 5,073,798 common shares and 1,200,000 share purchase warrants of Entrée Resources Ltd., increasing its stake to approximately 21.9% of Entrée's outstanding shares. Prior to this, Sandstorm held 20.4% of Entrée's shares, and the new purchase positions it to own 22.6% if all warrants are exercised. The shares were acquired through a private placement and open market purchases, with prices ranging from C$0.29 to C$0.65 per share. Sandstorm may consider acquiring more Entrée securities based on market conditions.