Welcome to our dedicated page for Sasol news (Ticker: SSL), a resource for investors and traders seeking the latest updates and insights on Sasol stock.
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 is poised to report robust results for the six months ending December 31, 2020, significantly bolstered by effective management of cash costs, working capital, and capital expenditures, despite challenges from the COVID-19 pandemic and declining crude oil prices. Key metrics include an expected earnings per share rise to between R22.76 and R24.07, and headline earnings per share anticipated to reach R18.59 to R19.78, both indicating over 100% growth from the prior year. However, adjusted EBITDA could decline by 0% to 10% due to reduced sales volumes and pressure on gross margins.
Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL) provides an update on its royalty portfolio, highlighting key developments. Lundin Gold plans a 20% throughput expansion at Fruta del Norte, with 2021 gold production guidance of 380,000 to 420,000 ounces. Equinox Gold released positive drill results from the Aurizona mine, planning a $7.3 million exploration program for 2021. Endeavour Mining expects to produce 2.3 million ounces at Houndé through 2031. Sandstorm holds significant NSR royalties on these projects, indicating potential revenue growth.
Sandstorm Gold Ltd. reported a strong performance for 2020, selling approximately 52,200 attributable gold equivalent ounces and achieving record revenue of $93.0 million. In Q4 2020, the company sold about 15,800 gold equivalent ounces with preliminary revenue of $29.7 million. The cash operating margin for this period was approximately $1,630 per ounce after costs of $3.9 million. Sandstorm operates a portfolio of 201 royalties, with plans to expand its low-cost production profile through additional acquisitions.
Sasol has successfully completed the divestment of its 50% interest in the Gemini high-density polyethylene joint ventures to INEOS Gemini HDPE LLC on December 31, 2020. The transaction was valued at US$404 million, satisfied through cash and debt release. This divestment allows Sasol to repay near-term debt obligations, significantly enhancing its financial position. The restructuring has released Sasol and its subsidiaries from further security obligations, streamlining their financial commitments.
Sasol has signed a Sale Securities Purchase Agreement with Azura Power Limited to divest its full shareholding in the CTRG gas-to-power plant in Mozambique for approximately USD 145 million. The transaction is pending regulatory approval and the waiver of pre-emption rights from Electricidade de Mocambique (EDM). This divestment aligns with Sasol’s asset strategy while the company remains committed to its upstream operations in Mozambique.
Sasol successfully closed the divestment of a 50% interest in its Base Chemicals business at Lake Charles to LyondellBasell on December 1, 2020. The transaction, valued at approximately US$2 billion, allows LyondellBasell to operate and market the joint venture's polyethylene products. Additionally, Sasol has secured a covenant amendment from lenders, maintaining a net debt to EBITDA ratio of 4x for December 31, 2020. An investor update on the Sasol 2.0 transformation program is scheduled on December 2, 2020.
Sasol Chemicals North America has reached an agreement to sell its 50% stake in Gemini HDPE LLC to INEOS for USD 404 million. This strategic move aims to streamline operations towards specialty chemicals and reduce Sasol's net debt. The net assets related to this sale were valued at USD 176 million as of June 30, 2020, although the loss from these assets was USD 18 million for the same period. The transaction is expected to close by December 31, 2020, after necessary debt restructuring.
Sasol announced that its Low-Density Polyethylene (LDPE) unit began beneficial operations on November 15, 2020, marking the completion of the Lake Charles Chemicals Project. With total capital expenditures expected to stay within US$12.8 billion, this unit enhances Sasol's transition to a specialty chemicals company. The LDPE unit, utilizing ExxonMobil technology, has a capacity of 420,000 tons per year. The project generated over 800 full-time jobs and contributed US$4 billion to local businesses.
Sasol will hold a virtual investor update on December 2, 2020, focusing on its Future Sasol vision and delivery pathway. CEO Fleetwood Grobler and CFO Paul Victor will present at 14:00 (SA time), accessible via a webcast link. The presentation will be available on Sasol's website on the event day. For inquiries, contact Chief Investor Relations Officer Feroza Syed at +27 (0) 82 557 7740 or investor.relations@sasol.com.
Sasol has reported on the status of its Lake Charles Chemicals Complex (LCCC) following Hurricane Laura and Hurricane Delta's impacts. Preliminary assessments show no further damage from Hurricane Delta, and operations are resuming smoothly. Approximately 170 kilotons of production was affected in Q1 FY2021. Seven chemical manufacturing units are operational, with all expected to resume by the end of October 2020. The company continues to support employees and the community affected by the hurricanes.