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.
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.
Sasol has reported on the impact of Hurricane Laura, which made landfall on August 27, 2020, near its Lake Charles Chemical Complex in Louisiana. The storm caused significant infrastructure damage in the area, but no major process equipment at the complex was adversely affected. While some facilities experienced moderate damage, assessments and repairs are ongoing. The company is aiding affected employees and has resumed operations, awaiting full power restoration from Entergy in mid-October. Sasol is also advancing its search for a partner in its U.S. Base Chemicals business without disruption.
Sasol reported on the impact of Hurricane Laura, which struck on August 27, 2020, near its Lake Charles Chemical Complex in Louisiana. Fortunately, all 800 employees are safe, but many have suffered home damage. The company is providing financial aid and support for recovery. Damage assessments revealed only moderate wind damage to peripheral structures, with no severe impact on major equipment. Regular operations have resumed, though full power restoration is critical for restarting ethane cracker units. Reliable service is expected by mid-October. Sasol's ongoing partner search for its U.S. Base Chemicals business remains unaffected.
Sasol announced the successful conclusion of negotiations with Air Liquide for the sale of its air separation business in Secunda for approximately R8.5 billion (EUR148.75 million). The deal includes a long-term gas supply agreement, ensuring reliable oxygen supply for Sasol’s operations. This transaction is part of Sasol's broader divestment strategy aimed at improving efficiency and reducing greenhouse gas emissions. The anticipated cash outflow for Sasol due to the agreement is estimated between R650 million and R1.2 billion annually. The implementation date will follow the satisfaction of certain conditions.
Sasol announces the completion of a Sale Agreement with Air Liquide for the sale of its air separation business in Secunda, comprising 16 units producing up to 42,000 tons of oxygen daily. The deal, valued at approximately R8.5 billion (EUR 148.75 million), includes a long-term gas supply agreement lasting 15 years. This transaction aligns with Sasol's divestment strategy to enhance efficiency and reduce greenhouse gas emissions. The proceeds will help repay near-term debt, while anticipated annual cash outflows are projected to be R650 million to R1.2 billion.
Sasol is advancing its climate change mitigation strategies through a Request for Information (RFI) process, inviting partners to develop CO2 utilization technologies at its South African operations. The initiative targets large-scale greenhouse gas (GHG) reductions and aims to foster collaboration in technology deployment. Interested parties can submit their proposals until September 30, 2020. This step embodies Sasol's commitment to sustainable operations and reducing environmental impact.
Sasol is focusing on environmental sustainability by advancing its climate change strategy, targeting lower-carbon operations. The company is exploring various initiatives to significantly reduce greenhouse gas emissions, specifically through carbon dioxide (CO2) utilization technologies. An invitation is extended for interested parties to participate in a Request for Information (RFI) to collaborate on CO2 utilization technologies aimed at Sasol's operations in Secunda and Sasolburg, South Africa, with submissions due by September 30, 2020.
Sasol activated inclement weather protocols ahead of Hurricane Laura, which made landfall on August 27, 2020, affecting its facilities in Lake Charles, Louisiana. The company temporarily shut down operations due to widespread electrical outages and facility impacts. While damage assessments are ongoing, initial reports indicate no flooding or significant equipment damage. Sasol has insurance coverage for affected units and is in communication with customers regarding production impacts. No adverse effects on potential divestment transactions are anticipated.
Sasol activated its inclement weather protocols ahead of Hurricane Laura, impacting its Lake Charles Chemicals Complex in Louisiana. The company prioritized employee safety and temporarily shut down facilities in Lake Charles, Greens Bayou, and Winnie, Texas. While the storm caused electrical outages, initial assessments reported no flooding or significant damage to process equipment. The Lake Charles site remains shut down, with operations resuming dependent on power restoration. Sasol holds Atlantic Named Wind Storm insurance for affected units and reports no anticipated impacts on potential divestment transactions related to its U.S. base chemical portfolio.
Sasol reported a loss of R91.3 billion for the year, a stark contrast to earnings of R6.1 billion in the previous year. The decline was driven by low oil prices averaging US$62.62 per barrel, coupled with the adverse economic impact of COVID-19. Key metrics include an adjusted EBITDA drop of 27% and a basic loss per share of R147.45. Despite challenges, sales volumes in the Base Chemicals and Performance Chemicals segments improved by 19% and 8% respectively. The firm also improved cash fixed costs, achieving a historical low working capital ratio of 12.5%.
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