Sasol (SOL) is a massive international chemicals and energy company which has its roots in the oil-from-coal technology developed during the apartheid era in South Africa. About 50% of the company's profits are directly linked to the oil price. It has two main growth areas - its 50% stake in an ethane cracker plant in Louisiana, America, known as "Lake Charles Chemical Project" (LCCP), and its development of gas resources in Mozambique.
Sasol was awarded two new licences in Mozambique to explore for gas in an onshore development of approximately three thousand square kilometres. This could significantly add to its existing gas projects in the Rovuma province. One area of concern for Sasol is that it is the biggest producer of greenhouse gases in South Africa and on the JSE. It is listed as one of the 100 fossil-fuel companies world-wide that contribute to more than 70% of Greenhouse gases. The company remains under international pressure to deal with its carbon emissions effectively.
After the impact of COVID-19, the share made a dramatic recovery which was brought to an end by the decline in commodity prices, especially oil. On 7th April 2024, the company announced that the Minister of the Environment, Barbara Creecy, had upheld its appeal against a decision by the national air quality officer that might have put the continued activity at its Secunda oil-form-coal plant at risk.
Sasol operates six coal mines which deliver 10m tonnes of thermal coal feedstock to its operations at Secunda and Sasolburg and for the export market. In its results for the year to 30th June 2024, the company reported a headline earnings per share (HEPS) down 66% and a 16% drop in its net asset value (NAV). This was mainly due to the R58,9bn impairment of the Chemicals America Ethane value chain, a R5,3bn impairment of Chemicals Africa, and a R7,8bn impairment of Secunda.
The company said, "The business benefitted from a weaker R/US$ average exchange rate, and a favourable rand oil price, however constrained margins impacted negatively on our fuels and chemicals businesses. The financial results were further impacted by various operational challenges across the business." Sasol remains a volatile commodity share in a long-term downward trend. We suggest waiting until it breaks up through its downward trendline before investigating further.
On 16th September 2024, the company announced the appointment of Ms. Muriel Dube as Chairman of the board with immediate effect.
Sasol was awarded two new licences in Mozambique to explore for gas in an onshore development of approximately three thousand square kilometres. This could significantly add to its existing gas projects in the Rovuma province. One area of concern for Sasol is that it is the biggest producer of greenhouse gases in South Africa and on the JSE. It is listed as one of the 100 fossil-fuel companies world-wide that contribute to more than 70% of Greenhouse gases. The company remains under international pressure to deal with its carbon emissions effectively.
After the impact of COVID-19, the share made a dramatic recovery which was brought to an end by the decline in commodity prices, especially oil. On 7th April 2024, the company announced that the Minister of the Environment, Barbara Creecy, had upheld its appeal against a decision by the national air quality officer that might have put the continued activity at its Secunda oil-form-coal plant at risk.
Sasol operates six coal mines which deliver 10m tonnes of thermal coal feedstock to its operations at Secunda and Sasolburg and for the export market. In its results for the year to 30th June 2024, the company reported a headline earnings per share (HEPS) down 66% and a 16% drop in its net asset value (NAV). This was mainly due to the R58,9bn impairment of the Chemicals America Ethane value chain, a R5,3bn impairment of Chemicals Africa, and a R7,8bn impairment of Secunda.
The company said, "The business benefitted from a weaker R/US$ average exchange rate, and a favourable rand oil price, however constrained margins impacted negatively on our fuels and chemicals businesses. The financial results were further impacted by various operational challenges across the business." Sasol remains a volatile commodity share in a long-term downward trend. We suggest waiting until it breaks up through its downward trendline before investigating further.
On 16th September 2024, the company announced the appointment of Ms. Muriel Dube as Chairman of the board with immediate effect.
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.