18 February 2020 06:21:53 PM

Sasol releases interim results

- 2019-02-25 09:58:29 AM

Sasol Limited has released its reviewed interim financial results for the six months ended 31 December 2018. 



- Earnings per share up 112% to R23,92

- EBITDA up 10% to R27 billion

- Core headline earnings per share up 18% to R21,45

- Normalised cash fixed costs contained to below inflation target

- Dividend per share R5,90 (3,6x CHEPS)


Safety Recordable Case Rate (RCR), excluding illnesses, improved to 0,26, regrettably two fatalities.


- Delay and cost overrun disappointing

- Cost estimate revised to US$11,6

- US$11,8 billion - LLDPE producing products since February 2019

- HDPE ramping up, targeting 80% utilisation for full year 


- Achieved Level 4 contributor status

- R9,4 billion in procurement from SA Black-owned businesses

- Invested R918 million in skills and socio-economic development

- Sasol South Africa declared first dividend of R11,44 per share, thereby benefiting our Khanyisa shareholders


- Extended shutdown at SSO impacted production and sales volumes, run-rate post the shutdown averaging 7,8 mt

- Mining productivity up 8%

- Liquid fuels sales volumes up 4%, due to strong SSO and Natref performance

- ORYX GTL utilisation at 99%

- Ethylene supply constraints result in 3% decrease in Performance Chemicals sales volumes

- Base Chemicals volumes down 11%, impacted by SSO shutdown

Joint President and Chief Executive Officer, Bongani Nqwababa said: "We recorded a satisfactory operational and financial performance against the backdrop of a volatile macroeconomic environment and an uncertain geo-political climate, which impacted global demand growth. Our production and sales performance was mixed with largely lower than expected production in the first half of the financial year, mainly as a result of the longer than planned total shutdown at our Secunda Synfuels Operations (SSO). However, our operational performance was enhanced by management interventions in previous periods resulting in improved performances at Natref and Sasol Mining. Post the shutdowns, we are pleased to see steady progress across our value chains. As always, we remain focused on our key controllable factors, with safety, reliability of operations and cost control being paramount. Our Continuous Improvement (CI) programme will be a key feature to deliver future value to shareholders and improve our cost competitive advantage. This initiative is driven with the same discipline and rigour that allowed us to deliver, and exceed expectations, on our Business Performance Enhancement Programme and Response Plan targets."

Joint President and Chief Executive Officer, Stephen Cornell said: "While the Lake Charles Chemicals Project (LCCP) fundamentals remain firmly intact, we acknowledge the disappointing cost and schedule overrun. The project was impacted by several challenges, within and beyond our control, in the fourth quarter of the previous calendar year. Despite incremental cash flows from the project being deferred due to a schedule delay, we remain confident that the project will deliver the steady EBITDA(1) run-rate of US$1,3 billion in financial year 2022. While this update will have an impact on our cash flow inflection point and gearing, we continue to proactively protect our balance sheet, while managing the capital structure and gearing during these turbulent times. Our short-term focus remains on productivity in the field, process safety and progressing units to mechanical completion followed by beneficial operation. The linear low-density polyethylene (LLDPE) unit achieved beneficial operations on 13 February 2019, and is the first of seven LCCP production units to come online. Our commitment to sustainable value creation for all our stakeholders, is underpinned by driving our roadmap to deliver on our financial and sustainability goals, as well as contributing meaningfully to inclusive growth and development of our fenceline communities. We are mindful of the challenges we face, however, our management team is fully committed to ensuring Sasol is a credible stakeholder partner with a compelling investment proposition that will deliver value to all stakeholders."

Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrate sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.