Sasol’s financial results for the year ending on the 30 June 2024, have dropped by 5% compared to the previous year (2023).
The company said in a statement this week, turnover is at R275,1 billion, lower than the previous year, due to challenging market conditions, and continued pressure from constrained margins and depressed chemicals prices.
Sasol said volumes have improved at its streamline operations, in the fourth quarter, ending on the 30th of June 2024.
This includes mining productivity, which is up by 3%, H1 Mozambique gas production also increased by 6%.
In addition, higher production, such as the one in Secunda, contributed to a 1% increase.
Chemicals Africa sales volumes are also up by 2%.
Chemicals America and Eurasia sales volumes are both up by 3%.
The company reported a slight improvement in demand but said margins remain under pressure.
Adjusted EBITDA is down by 9% to R60, 012 billion.
However, these factors were partially offset by the stronger rand oil price, improved refining margins, reduced total costs and higher sales volumes.
Loss before interest and tax (LBIT) was relatively higher than the previous year, at R27,3 billion, compared to R21,5 billion in 2023.
This decline was mainly due to increased asset impairments, lower earnings before interest, tax, depreciation and amortisation, translation losses and reduced derivative gains.
Sasol reported an impairment loss of R56,7 billion net of tax (R74,9 billion gross).
A total of R3,9 billion net of tax (R5,3 billion gross) relating to the Chemicals Africa and South African Wax value chain of R0,9 billion net of tax (R1,2 billion gross) was impaired on the 31 December 2023 and the Secunda liquid fuels refinery’s R5,7 billion net of tax (R7,8 billion gross).
Chemicals America Ethane value chain, cash generating unit (CGU) of R45,5 billion net of tax (R58,9 billion gross).