South Africa’s Sasol has reported $15.4 billion in turnover for the yr ended June 30, down 5 p.c on constrained margins and depressed chemical costs.
Stronger Rand oil costs, improved refining margins, decreased complete prices and better gross sales volumes partially offset the unfavourable elements.
The corporate posted a loss earlier than curiosity and tax of $1.5 billion, in comparison with earnings earlier than curiosity and tax of $12 billion a yr prior.
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“This decline was primarily resulting from elevated asset impairments, decrease earnings earlier than curiosity, tax, depreciation and amortization, translation losses, and decreased by-product positive factors”, Sasol mentioned in an announcement.
The corporate recorded a considerable impairment lack of $3.1 billion, primarily resulting from challenges within the chemical substances sector. The most important write-down, totaling $2.5 billion, was linked to the Chemical compounds America Ethane worth chain, impacted by sustained market weak point. Further impairments have been acknowledged within the Chemical compounds Africa phase ($218-7 million), primarily attributed to oversupply and decreased demand within the polyethylene market. These have been associated to the Chemical compounds Africa Polyethylene, Chlor-Alkali & Polyvinyl Chloride, and South African Wax worth chain cash-generating models (CGUs). The Secunda liquid fuels refinery additionally incurred a full impairment of $319.7 million.
The prior yr logged impairments of $1.9 billion (gross) primarily as a result of Secunda liquid fuels refinery CGU, South African Wax worth chain CGU, and China Important Care Chemical compounds CGU, offset by a reversal of the US Tetramerisation CGU impairment.
Sasol noticed an enchancment in volumes throughout its operations. Mining productiveness elevated three p.c with fuel manufacturing in Mozambique rising six p.c on the again of extra wells. Secunda refinery manufacturing elevated by one p.c with gross sales volumes by Chemical compounds Africa, Chemical compounds America, and Chemical compounds Eurasia segments rising two, three, and three p.c, respectively.
To contact the writer, e mail andreson.n.paul@gmail.com
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