JSE-listed petrochemicals company Sasol reports that it benefitted from a favourable macroeconomic environment, higher crude oil and chemicals prices and higher refining margins in the financial year ended June 30.
The company also delivered a robust cost and capital expenditure performance, which was, however, partly offset by operational challenges in Sasol’s integrated South African value chains, which resulted in lower production.
Sasol declared a force majeure on the supply of petroleum products from its Sasolburg-based Natref refinery to commercial customers from July 15, owing to delays in crude oil shipments.
However, Sasol restored full production capacity at the end of July.
Sasol expects its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the financial year under review to amount to between R66-billion and R75-billion, or between 36% and 56% higher than the adjusted Ebitda of R48.4-billion reported in the prior financial year.
Earnings per share (EPS) should therefore range between R60.59 and R63.51 for the period under review, compared with the EPS of R14.57 posted for the year ended June 30, 2021, representing a 100% year-on-year increase.
Sasol mentions notable non-cash adjustments for the 2022 financial year include unrealised losses of R5.2-billion on the translation of monetary assets and liabilities, as well as the valuation of financial instruments and derivative contracts, and a R2.8-billion loss in the Chemicals America segment for a loss on the scrapping of property, plant and equipment.
The company also reports a net gain of R9.9-billion on remeasurement items related to its 30% equity interest divestment in Republic of Mozambique Pipelines Company and the realisation of foreign currency translation reserve on the divestment of Sasol Canada’s shale gas assets.
Sasol will release its full-year results on August 23.