Sasol Stock Price, News & Analysis

Sasol has released its production and sales performance metrics for the nine months ending March 31, 2023, available on their official website. The report includes key financial figures and forecasts, reflecting the company's adaptation to market dynamics amid ongoing challenges from the COVID-19 pandemic. The metrics reveal operational adjustments aimed at improving results amidst fluctuating commodity prices and increasing costs. Stakeholders can access detailed information under the Investor Centre section of the Sasol website.

Sasol has successfully refinanced its banking facilities, securing a new total of USD2.969 billion. This consists of a USD1.987 billion revolving credit facility and a USD982 million term loan, both maturing in five years with two optional one-year extensions. The facility size was increased from an initial target of USD2.5 billion due to oversubscription.

The refinancing involved a syndication with 14 banks, demonstrating strong market demand. Bank of America Europe DAC, Mizuho Bank, and MUFG Bank acted as Joint Global Coordinators, with EY serving as the independent financial advisor for Sasol. This strategic move strengthens Sasol’s capital structure ahead of the current banking facilities maturing in 2024.

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 has launched Sasol Ventures, a €50 million venture capital fund aimed at advancing its decarbonisation goals and achieving net-zero emissions by 2050. This fund, the largest of its kind in South Africa, will focus on investing in start-up and early-stage technologies that promote sustainable chemicals and energy solutions. Sasol has partnered with Emerald Technology Ventures to enhance its ability to identify and evaluate innovative opportunities. The initiative aligns with Sasol’s strategy to transform its operations towards sustainability, positioning the company to leverage emerging technologies for business growth.

Sasol Chemicals has pledged to supply a first fill of its latest Fischer-Tropsch (FT) catalyst at no cost to start-up Ineratec. This collaboration supports Ineratec's lighthouse project at Industriepark Hoechst, aiming to create the world's largest production plant for paraffinic synthetic fuels with a target output of 2,500 tons per year, anticipated to start in 2023. The catalyst will play a crucial role in producing Sustainable Aviation Fuels (SAF). The German government is providing around 6 million euros in funding for this initiative, which aligns with global sustainability goals and demonstrates Sasol's commitment to innovation in renewable energy.

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.