Sasol ( (SASOF) ) has released its Q2 earnings. Here is a breakdown of the information Sasol presented to its investors.
Sasol Limited is a global integrated chemicals and energy company operating in the mining, gas, fuels, and chemicals sectors. It is known for its innovative technologies and sustainable practices in producing a range of products, including liquid fuels, chemicals, and low-carbon electricity.
Sasol’s latest earnings report for the six months ended December 31, 2024, highlights a challenging macroeconomic environment that impacted its financial performance. Despite a decline in revenue and earnings, the company managed to improve its free cash flow through stringent cost management and efficient capital allocation.
Key financial metrics show a 10% decrease in revenue to R122.1 billion and a 15% drop in adjusted EBITDA to R23.9 billion compared to the previous period. The company faced a 40% reduction in EBIT, primarily due to non-cash adjustments and impairments in its liquid fuels refineries. Additionally, basic earnings per share fell by 52% to R7.22, while headline earnings per share decreased by 31% to R14.13. Sasol’s cash generated from operating activities increased by 20% to R17.6 billion, although free cash flow remained negative at R1.1 billion.
Segmental performance varied, with the Mining and Gas segments showing improvements in EBIT, while the Fuels segment faced significant challenges due to lower crude oil prices and refining margins. Chemicals Africa and Chemicals America segments showed mixed results, with improved sales prices offset by lower sales volumes and significant earnings improvements, respectively.
Looking ahead, Sasol’s management remains focused on improving free cash flow generation and navigating the challenging economic landscape. The company is committed to optimizing its operations and capitalizing on growth opportunities in the energy and chemicals markets, while also addressing environmental and sustainability goals.