Sasol shares sink after warning on Secunda challenges
Sasol shares fell nearly 7% after the South African petrochemicals company said it expects challenges at its Secunda operations to impact coal and fuel production, although higher crude oil prices are seen boosting half-year profit by more than 20%.
Sasol shares were 6.74% lower at 1301 GMT.
The world's biggest producer of fuel products from coal and chemicals manufacturer said headline earnings per share (HEPS) - the main profit measure in South Africa - could be up more than 20% in its half-year to Dec. 31 despite operational challenges at Secunda.
"We continue to see the favourable impact of the higher Brent crude oil price, refining margins and weaker rand:dollar exchange rate on our gross margins," Sasol said in a trading statement.
Sasol said the challenges related to coal quality, safety stoppages and flooding at Secunda, which have hit production and sales volume performance in the current quarter.
As a result, the company has lowered its Secunda coal production guidance for the full-year to June 2023 to 6.6-million to 6.9-million tonnes, from previous guidance of 7-million to 7.2-million tonnes. Liquid fuels sales volumes are now expected at 52-million to 55-million barrels, down from initial guidance of 53-million to 56-million barrels.
Chemicals sales in Africa are also expected to be affected by lower production at Secunda.
Sasol said the force majeure declared in October on the local supply and export of certain chemicals products because of a wage strike at logistics company Transnet had been largely lifted in early November. However, Sasol declared another force majeure in November, this time on local ammonia supply, because of a shortage of rail cars.
Sasol is due to report half-year results on Feb. 21.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Avlock International is a leading manufacturer and distributor of Specialized Fastening Systems.
VISIT SHOWROOM
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
