Africa-Press – South-Africa. Shares in chemicals and energy giant Sasol lifted almost 4% on Tuesday morning after it reported it had largely met its production guidance across its operations, while managing to exceed it at Secunda.
Secunda, the world’s only commercial-scale coal-based synthetic fuels facility, benefited from an improved supply of natural gas as well as equipment reliability, beating its target of as much as 6.9 million tonnes in its 2023 year to end-June.
All three of the group’s chemical divisions – Africa, the Americas and Eurasia – all met their guidance, while the crucial Natref facility also met its average run rate, although the group warned of disruptions since the end of June due to illegal tapping of the crude oil pipeline that feeds it.
“We are working closely with Transnet Pipelines to address and resolve these challenges,” the group said. Sasol co-owns the facility with TotalEnergies.
Sales volumes for its Africa chemicals business were 1% higher than 2022, compared to guidance of up to 4% growth, while in the Americas, it saw growth of 9%, compared to guidance of as much as 10%.
In SA, supply chain challenges eased in the second half, but remain a key risk and the force majeure on the local supply of ammonia by rail is still in place due to a shortage of Transnet railcars, Sasol said. In Eurasia, after normalising for disposals, sales volumes for fell 19%, compared to guidance of a fall of as much as 20%, with the group citing weaker demand from Europe and China.
Liquid fuels sales volumes for the year were 53.9 million barrels, within a market guidance range of 52 – 55 million barrels, and 2% lower than 2022, the group said.
“The global economic landscape remains volatile, including fluctuating oil and petrochemical prices, an unstable product demand environment and inflationary pressure,” Sasol said on Tuesday.
“In South Africa, the underperformance of state-owned enterprises and socio-economic challenges continues to impact volumes, margins and resultant profitability.”
In mid-morning trade Sasol was up almost 3% at R245.33, but its share price is still down about 8% for the year to date. Click here for details of its shares as well as other info.
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