Recovery in chemical prices boost Sasol

Petrochemicals giant Sasol closed stronger on the JSE following news of bumper earnings during its 2021 financial year aided by the recovery in chemical prices and higher oil prices.

The shares rose to a high of R224.65 intraday trade on Friday on the JSE, later moderating to close 1.15% up at R221.01.

The group, which operates the Secunda Synfuels in Mpumalanga, said it expected an increase of up to 49% in adjusted headline earnings before interest, tax, depreciation and amortisation (Ebitda) to a maximum of R52 billion from R35 billion a year earlier, it said on Friday.

“This results from a strong recovery in chemical prices and a 4 percent increase in the rand per barrel price of Brent crude oil, partly offset by weather related events in both the US and South Africa impacting our gross margins adversely,” Sasol said.

The weather was a headwind for the group as the US chemical plants were rocked by two hurricanes and an Arctic winter storm resulting in a 300,000 tin impact on output during the year under review.

Sasol said adjusted Ebitda were supported by a strong cost performance through better than planned delivery of the $1billion (R14.63bn) comprehensive crisis response plan commitment, and on progress of its Sasol 2.0 initiative.

 

 

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