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 (NYSE: SSL) is an international integrated energy and chemicals company with operations spanning across 37 countries. With a talented workforce exceeding 31,000 employees, Sasol excels in developing and commercializing advanced technologies, and building world-scale facilities that produce a variety of high-value products such as liquid fuels, chemicals, and low-carbon electricity.
Core Business Segments
- Energy Business: This segment focuses on the production and marketing of liquid fuels and pipeline gas, drawing from Sasol's upstream oil and gas interests and coal mining operations.
- Chemical Business: This segment generates the majority of the company's revenue by producing and marketing commodity and performance chemicals globally.
While maintaining a strong commitment to its home base in South Africa, Sasol is expanding internationally, leveraging its unique value proposition that combines the talent of its people with technological innovation. Over the past six decades, Sasol has been a pioneer in innovation, adapting its methods, facilities, and products to meet evolving market needs and stakeholder expectations. This dynamic approach has enabled the company to sustain long-term shareholder value.
Recent Achievements and Financial Condition
Despite challenging macro-economic conditions, including volatile oil and petrochemical prices and inflationary pressures, Sasol has continued to make significant strides. For the six months ended December 31, 2023, Sasol reported revenue of R136.3 billion, although this was lower than the prior period's R149.8 billion due to decreased chemical product prices. Earnings before interest and tax (EBIT) were R15.9 billion, reflecting a 34% decrease from the previous period.
The company also declared an interim dividend of 200 cents per share for the six months ended December 31, 2023. This decision underscores the company's confidence in its liquidity and solvency, ensuring that capital remains sufficient to support ongoing operations.
Current Projects and Partnerships
Sasol continues to invest in innovative projects and sustainable initiatives. Recent announcements include the company's commitment to reducing its environmental footprint and improving air quality, as evidenced by the appeal to the National Environmental Management: Air Quality Act, which was upheld, allowing Sasol to apply load-based limits for SO2 emissions from April 2025 to March 2030.
Additionally, Sasol's production and sales performance metrics for the three months ended September 30, 2023, and six months ended December 31, 2023, have been published, showcasing the company's ongoing operational improvements and strategic initiatives.
Overall, Sasol Limited remains a significant player in the energy and chemicals sectors, continually evolving to meet market demands and stakeholder expectations while delivering sustainable value to its shareholders.
Sandstorm Gold Ltd. (NYSE: SAND, TSX: SSL) will release its fourth quarter and annual results for 2020 on February 11, 2021, after market close. A conference call will follow on February 12, 2021, at 8:30 AM PST for further discussion on the results. Interested participants can join via dial-in or webcast. Sandstorm is a gold royalty company that provides financing to gold mining firms in exchange for a percentage of gold produced. It holds a portfolio of 201 royalties, with 24 mines currently producing.
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.
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