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Sasol Ltd. (SASOF) is an international integrated energy and chemicals company with over 31,000 employees across 37 countries. They focus on developing and commercializing technologies, building world-scale facilities, and producing high-value product streams like liquid fuels, chemicals, and low-carbon electricity. With a strong foundation in Southern Africa, Sasol is expanding globally by leveraging its people and technological prowess. Over six decades, Sasol has been at the forefront of innovation, adapting to market needs and stakeholder expectations. Recent financial results indicate operational challenges due to a volatile global economic landscape but also highlight improvements in the company's performance. Sasol's commitment to sustainable growth, shareholder value, and innovation remains unwavering.
Sasol Limited has announced a commitment to achieve net zero emissions by 2050, enhancing its 2030 GHG emission reduction target from 10% to 30% for its Energy and Chemicals businesses. This update aims for direct decarbonisation without divestments or offsets. The company plans to invest R20 to R25 billion annually to meet its transition goals, targeting a return on invested capital (ROIC) between 12% and 15% by 2025. Additionally, dividends will resume once debt metrics stabilize, supporting shareholder returns while pursuing sustainability.
Sasol has published its integrated report for the year ending June 30, 2021, which is available on its website. The annual financial statements received an unmodified opinion from PricewaterhouseCoopers and were previously published on August 16, 2021. Additionally, Sasol will file its annual report on Form 20-F with the SEC on September 22, 2021. A virtual Capital Markets Day is scheduled for the same day to discuss the company's long-term strategy. The Annual General Meeting will be held electronically on November 19, 2021.
Sasol's trading statement for the year ending June 30, 2021, shows significant recovery with earnings per share (EPS) projected between R12.00 and R18.00, a turnaround from a loss of R148.49 the previous year. Headline earnings per share (HEPS) are expected between R39.00 and R41.00, indicating over 100% improvement. Adjusted EBITDA is forecasted to rise by 32% to 49% to R46 billion to R52 billion, driven by stronger chemical prices and effective cost management. However, weather-related disruptions in the US impacted production by 300kt.
Sasol reported production and sales metrics for the year ended 30 June 2021, highlighting a resilient performance despite challenges. Chemical volumes decreased due to divestments and adverse weather, yet higher chemical prices led to increased revenue. The Energy sector benefited from recovering demand post-lockdowns and rising oil prices. The company is currently closing its financial year and plans to release its annual results on 16 August 2021. Investors can expect a Trading Statement in early August, detailing performance metrics further.
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 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 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 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.
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