Thursday, June 8, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Price

Sasol doubles annual earnings on soaring oil prices, re…

10 months ago
in Price
Sasol doubles annual earnings on soaring oil prices, re…
Share on FacebookShare on Twitter


Sasol’s earnings in the financial year to June before interest, tax, depreciation and amortisation (Ebitda) more than doubled to R75.5-billion, while basic earnings per share were R62.34 compared with R14.57 last year. 

“This is predominantly due to a strong recovery in Brent crude oil and chemical prices, partly offset by hedging losses and lower chemical sales volumes,” the company said. The average rand per barrel price of Brent crude oil rose by 68% for the period under review, while the average chemical sales basket price in dollar terms increased by 39%. 

That enabled Sasol to pay out a dividend of R14.70 per share, its first since 2019, capping a remarkable turnaround for a company that, like its peers, was staring into the abyss in 2020 as oil prices collapsed in the face of the onset of the Covid-19 pandemic.  

And its earnings could have been better were it not for logistical hiccups in South Africa — a recurring theme for domestic commodity producers. 

“We produced lower volumes across most of our business segments compared to the prior year, mainly due to the operational challenges experienced in our South African value chains in the first half of the financial year, as well as the adverse weather events in the KwaZulu-Natal province which resulted in damage to port export infrastructure,” CEO Fleetwood Grobler said in a statement.


Visit Daily Maverick’s home page for more news, analysis and investigations


Another recurring theme is the massive profits that oil and coal companies have reaped over the past year as the prices of the stuff they produce have gone through the roof. Glencore, BP and Shell, among others, have all coined it. Vladimir Putin’s invasion of Ukraine has helped, which is hardly their fault but will raise eyebrows about their profits.  

Having said that, slowing global growth has cooled the oil rally of late, and is Sasol in a position to withstand another downturn?  

Sasol CFO Hanre Rossouw. (Photo: Supplied)

CFO Hanre Rossouw told Business Maverick that the group’s balance sheet — with debt slashed from more than $10-billion last year to $3.8-billion — would allow it to navigate any coming storm.  

“That was a critical aspect for preparing for any downturn. There are some fears out there that we are facing another global recession and our balance sheet is in rude health. It’s recession-ready,” he said. The company, he said, also remained focused on reducing its cash costs and reiterated that it was striving to be “economically viable” even at $45 a barrel.  

Sharply rising oil prices have also been a bane to South African consumers — they are among the drivers of Wednesday’s planned stayaway and cost-of-living protests — and Sasol has its own “Bain”, which has raised questions about the company’s governance model.  

Global consultancy Bain & Co — which has been blacklisted by the UK government for its role in South Africa’s sordid State Capture saga — counts Sasol among its clients. There have been calls for Sasol to sever its ties with Bain, including from whistle-blower Athol Williams.  

Rossouw noted that the company had suspended Bain from rendering services from 2018 to 2020 — a point that has not been widely reported — in the wake of the Nugent report and subsequently the Zondo Commission, and said Sasol was reviewing the matter again. Given the pressure and risk to its reputation, it seems that the writing is on the wall.  

As Africa’s biggest private sector emitter of the greenhouse gas emissions linked to climate change, Sasol is also under scrutiny to reduce its massive carbon footprint. It has plans to decarbonise by 2050. By that time, its business model will presumably no longer be linked to oil prices. DM/BM

Gallery



www.dailymaverick.co.za

Latest Oil News

Marathon Petroleum Corporation (NYSE:MPC) Q4 2022 Earnings Call Transcript

Marathon Petroleum Corporation (NYSE:MPC) Q4 2022 Earnings Call Transcript

February 1, 2023
Oil Under Pressure As API Reports Large Crude, Product Builds

Oil Under Pressure As API Reports Large Crude, Product Builds

January 31, 2023
African economies: How to respond to rising global crises

African economies: How to respond to rising global crises

January 30, 2023
Fuel prices to increase by 7%-13% from February 1, 2023 – IES

Fuel prices to increase by 7%-13% from February 1, 2023 – IES

January 29, 2023
Tags: annualdoublesearningsoilpricesSasolsoaring
Previous Post

Hear that? It’s Biden inaugurating his midterm message

Next Post

Bullish OPEC+ Rhetoric Sends Oil Prices Soaring

Related Posts

Marathon Petroleum Corporation (NYSE:MPC) Q4 2022 Earnings Call Transcript

Marathon Petroleum Corporation (NYSE:MPC) Q4 2022 Earnings Call Transcript

by Oil Market News
February 1, 2023
0

Marathon Petroleum Corporation (NYSE:MPC) Q4 2022 Earnings Call Transcript January 31, 2023Operator: Welcome to the MPC Fourth Quarter 2022 Earnings...

Oil Under Pressure As API Reports Large Crude, Product Builds

Oil Under Pressure As API Reports Large Crude, Product Builds

by Oil Market News
January 31, 2023
0

Crude oil inventories rose by another 6.33 million barrels last week, the American Petroleum Institute (API) data showed on Tuesday,...

African economies: How to respond to rising global crises

African economies: How to respond to rising global crises

by Oil Market News
January 30, 2023
0

Treasury CS Prof Njuguna Ndung'u. The Covid-19 pandemic triggered a profound setback after a quarter-century of economic and social progress....

Fuel prices to increase by 7%-13% from February 1, 2023 – IES

Fuel prices to increase by 7%-13% from February 1, 2023 – IES

by Oil Market News
January 29, 2023
0

The Institute for Energy Security (IES) is predicting between 7% and 13% jump in the prices of petrol, diesel and...

Why Germany Dragged Its Feet on Leopard Tanks to Ukraine

Why Germany Dragged Its Feet on Leopard Tanks to Ukraine

by Oil Market News
January 28, 2023
0

The decision to provide heavy tanks to Ukraine in significant numbers constitutes a step change in western military support for...

Indexes Rally and Notch Weekly Gains

Indexes Rally and Notch Weekly Gains

by Oil Market News
January 27, 2023
0

US stocks closed higher Friday after reversing early-session losses.  Easing inflation data added to investor optimism that the Federal Reserve...

Next Post
Bullish OPEC+ Rhetoric Sends Oil Prices Soaring

Bullish OPEC+ Rhetoric Sends Oil Prices Soaring

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

3 Red-Hot Stocks That Could Continue to Beat the Market

3 Red-Hot Stocks That Could Continue to Beat the Market

1 year ago
Closing prices for crude oil, gold and other commodities

Biden Is Right to Question Big Oil’s Stock Buybacks

6 months ago
Natural Gas, WTI Oil, Brent Oil

Natural Gas, WTI Oil, Brent Oil

5 months ago
S&P 500, Nasdaq close at record highs as $1.9 trillion stimulus package works its way

S&P 500, Nasdaq close at record highs as $1.9 trillion stimulus package works its way

1 year ago
Chinese Cargo Ship Sinks in Storm with Rescue Operation Continuing

Chinese Cargo Ship Sinks in Storm with Rescue Operation Continuing

4 months ago
ADVERTISEMENT
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Opec bans prominent media groups from Vienna meeting

June 4, 2023

Saudi Arabia’s ‘prickly prince’ of oil bristles as crude price slides

June 3, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023
Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.