Sasol’s half-year headline profit to rise by 20+%
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Makwe Mailela - Chief investment officer and founder at Makwe Fund Managers talks about Chemicals and energy group Sasol said on Thursday its first-half headline profit would rise by more than 20% year on year, boosted higher international oil prices and weaker rand.
But its SA operations were blighted by operational challenges in October and November ranging from coal quality to flooding that affected coal processing plants, loading-shedding as well unplanned safety stoppages.
The factors collectively affected production and sales volume performance during the second quarter of the financial year, as well the outlook for remainder of the financial year.
The impact of lower production from Secunda has a direct impact on the downstream chemicals value chains in SA.
Sasol’s force majeure on the local supply and export of certain chemicals products was largely lifted at the beginning of November with the end of the Transnet strike action in October.
But its SA operations were blighted by operational challenges in October and November ranging from coal quality to flooding that affected coal processing plants, loading-shedding as well unplanned safety stoppages.
The factors collectively affected production and sales volume performance during the second quarter of the financial year, as well the outlook for remainder of the financial year.
The impact of lower production from Secunda has a direct impact on the downstream chemicals value chains in SA.
Sasol’s force majeure on the local supply and export of certain chemicals products was largely lifted at the beginning of November with the end of the Transnet strike action in October.
