#Johannesburg #South Africa #Sasol Limited #International Chemicals #Secunda Operations

Overview of Sasol Limited's Recent Metrics

In a significant update, Sasol Limited has published its production and sales performance metrics for the six months ending December 31, 2024. This release, available on the company's investor relations section, sheds light on both the challenges and advancements Sasol has faced in its operations.

Highlights of Operational Changes

Sasol made headlines with its Final Investment Decision (FID) made in December 2024 to enhance coal quality for the Secunda Operations (SO) by implementing a destoning solution. This initiative showcases the company's proactive approach to improve its operations, with beneficial outcomes expected during the first half of FY26, earlier than previously anticipated.

However, the company faced some setbacks due to civil unrest in Mozambique, which impacted the Central Processing Facility (CPF), causing production rates in December 2024 to dip. Fortunately, operations at the CPF have since improved, returning to full capacity, although risks remain prevalent in the near term.

An unfortunate fire incident occurred at the Natref refinery on January 4, 2025, damaging infrastructure surrounding the Crude Distillation Unit. Quick responses from the team prevented injuries and efforts are underway to complete repairs by February 2025. To address potential supply shortages resulting from this incident, Sasol is implementing various strategies, including product purchases to maintain the operational flow.

Challenges in Production

Sasol has recently experienced operational hurdles related to persistent coal quality issues, which have adversely affected gasifier and equipment availability at SO. To counter these challenges, the company is focusing on implementing the destoning solution combined with ongoing reliability improvement initiatives that are expected to drive higher production levels in the future.

Despite facing these challenges, International Chemicals revenue has seen an increase in comparison to the first half of FY24, although the overall business environment remains challenging. Sales volumes were negatively impacted by the East Cracker outage in the U.S. Fortunately, the unit restarted successfully in November 2024, contributing to an overall improvement in profitability through proactive management.

Market guidance for both Mining and Gas sectors is remaining steady, while the annual volume outlook for both SO and Natref has been revised downwards due to earlier challenges. This means that sales volumes of Fuels and Chemicals Africa are projected to be closely aligned with FY24 performance.

Moving Forward

In light of operational difficulties during the quarter, Sasol is firmly committed to executing key self-imposed initiatives designed to boost performance and alleviate the challenges faced. Notably, ORYX production volume guidance has been revised upwards, indicating optimism in certain operational areas.

International Chemicals sales volume guidance does foresee a reduction of 4-8% lower than FY24 levels, primarily driven by weaker demand and unplanned operational outages. Nevertheless, effective cost management initiatives have helped in alleviating the financial impacts while enhancing margins compared to the previous period.

For more detailed information regarding Sasol's performance metrics, stakeholders can visit the investor relations section of Sasol's website. For inquiries, contact Tiffany Sydow, the VP of Investor Relations, at +27 (0) 71 673 1929 or via email at [email protected].