Sasol Limited (SSL), a South African energy and chemical company, said on Thursday that its first-half performance continued to be impacted by a volatile macro-economic environment, with weaker oil and petrochemical prices, unstable demand, and continued inflationary pressure.
In addition, the company noted that the pricing pressure continues to impact sales volumes, margins and resultant profitability.
For the first-half, energy mining productivity was 6 percent higher than the first-half of 2023, with 5 percent increase in productivity from Secunda Collieries.
Export sales from the energy mining improved by 16 percent from the same period last year, driven by increased productivity at Thubelisha Colliery and lower volume of product diverted to Secunda Operations or SO market.
In Mozambique, gas production for was 10 percent higher than the prior year due to three additional wells coming online.
Natural gas and Methane rich gas sales volumes in South Africa were up 4 percent and 5 percent higher than prior year, respectively, due to higher external customer demand.
External sales of natural gas South African stood at 18,9 bscf, higher than last year's 18,2 bscf.
External sales of natural gas Mozambique was at 8,5 bscf, higher than last year's 8,3 bscf.
SO fuel production volumes were 8 percent higher than the prior year mainly due to a phase shutdown relative to a total shutdown in the prior year
Liquid fuel sales volumes were 1 percent lower than the prior year driven by oversupply in the South African diesel market.
Sales revenue from the company's South African chemical assets was 18 percent lower than the same period last year, driven by lower prices, offset by higher sales volumes. Sales volumes were 3 percent higher than the last year.
Sales revenue from the American chemical assets was 19 percent lower than last year period, driven by lower prices, offset by higher sales volumes. Sales volumes were 12 percent higher than the same period a year ago.
Sales revenue from Eurasian chemical assets was 26 percent lower than previous year period, driven by lower volumes and prices. Sales volumes for were 4 percent lower than the same period last year.
Looking ahead, the company expects pricing and demand volatility to continue through the second-half. Global market sentiment and petrochemical markets remain uncertain with the persistent muted demand and margin outlook for chemicals.
Sasol projects its South African suppliers and customers continue to face business disruptions due to challenges at Eskom and Transnet.
The company said: "The previously communicated FY24 production and sales volume guidance remains intact for all segments, except ORYX GTL utilization rate which is forecasted to be 65 - 75% due to the challenges experienced in Q2 FY24, which is further outlined in the Fuels segment."
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