Financial Performance Overview: Sasol reported a 75% increase in free cash flow to R12.6 billion, despite a challenging environment that led to a 9% decline in turnover to R249 billion and a 14% drop in adjusted EBITDA.
Earnings Improvement: Basic earnings per share rose over 100% to R10.60, while headline earnings per share improved by 93% to R35.13, supported by non-recurring items such as a R4.3 billion settlement from Transnet.
Cost Management and Capital Expenditure: The company successfully contained cash fixed cost increases below inflation and reduced capital expenditure by 16% to R25.4 billion, contributing to a strengthened balance sheet with net debt declining by 13%.
Board Changes and Future Outlook: Sasol announced changes in board committee membership and emphasized ongoing strategic initiatives aimed at restoring the Southern Africa value chain and transforming its operations amidst a complex global environment.
SSL
$6.26+Infinity%1D
Analyst Views on SSL
About SSL
Sasol Limited is a South Africa-based company, which is a global chemical and energy company. The Company operates in two divisions: Chemical and Energy. Its Energy business operates in three segments Mining, Fuel and Gas. The Mining segment is responsible for securing coal feedstock for the Southern African value chain, mainly for gasification, but also to generate electricity and steam. The Gas segment reflects the upstream feedstock, transport of gas through the Republic of Mozambique Pipeline Investments Company (ROMPCO) pipeline, and external natural and methane rich gas sales. The Fuels segment comprises the sales and marketing of liquid fuels produced in South Africa. The Chemical products are grouped into Advanced Materials, Base Chemicals, Essential Care Chemicals and Performance Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
