By Terri-Ann Brouwers.
Sasol Limited reported a 52% decline in basic earnings per share (EPS) to R7.22 for the six months ended 31 December 2024, while headline earnings per share (Heps) dropped 31% to R14.13. The company attributed the weaker performance to a challenging operating environment, with revenue falling 10% to R122.1 billion due to lower oil prices and weaker refining margins. Adjusted Ebitda declined by 15% to R23.9 billion.
The revenue decline was driven by a 13% drop in the average rand-per-barrel Brent crude oil price and a 5% reduction in sales volumes. Lower production and weaker market demand, as outlined in Sasol’s Production and Sales Metrics published on 23 January 2025, also contributed to the decline.
Earnings before interest and tax (Ebit) fell 40% to R9.5 billion, impacted by non-cash adjustments.
These included a R6.2 billion net loss from remeasurement items, driven by additional impairments at the Secunda and Sasolburg liquid fuels refineries, which remain fully impaired. Unrealised losses on financial instruments and derivative contracts also weighed on results, amounting to R100 million compared to a R2.7 billion gain in the prior period.
Despite these challenges, cash generated from operations increased by 20% to R17.6 billion, supported by changes in working capital. Capital expenditure for the period stood at R15 billion, 6% lower than the previous year. However, free cash flow remained negative at R1.1 billion, although it improved significantly from a R6.45 billion deficit in the prior period.
At 31 December 2024, Sasol’s total debt was R116.9 billion, with net debt (excluding leases) rising to R81.8 billion from R73.7 billion at 30 June 2024. The company deposited R5.4 billion on its revolving credit facility during the period.
No dividend was declared.