Sasol revised Natref's guidance downward to 500-530m³/h.Picture: Tumi Pakkies/African News Agency(ANA)
Sasol on Friday said its 2023 guidance remained unchanged, but revised the expected output of Natref, its South African inland crude oil refinery, due to challenges experienced in the third quarter of the 2023 financial year.
The share price ended Friday 4.2% lower at R233.01.
In its production and sales figures for the nine months to end-March, the chemicals and energy group said it revised Natref's guidance downward to 500-530m³/h.
“We experienced operational challenges at our Natref refinery, which negatively impacted run rates in the quarter of the 2023 financial year.
“We continue to review our crude procurement strategy to reduce the high premiums on West African crude purchased,” the group said.
Sasol reported a 6% decline in total sales volumes compared to the same period last year.
This was due to lower output across most of Sasol's business units which span coal mining, gas, synthetic fuels production, and chemicals with operations in South Africa, Mozambique, Eurasia and the US.
The average basket price decreased by 3% compared to the prior period, while the third quarter of the 2023 financial year prices were similar to the second quarter of the 2023 financial year.
“Price increases were seen in Africa on the back of improved demand while prices in Eurasia and America reduced due to recent lower feedstock and energy costs,” it said.
Pricing and demand volatility was expected for the remainder of the 2023 financial year in light of the global macroeconomic environment and the potential for ongoing disruption from Eskom and Transnet on its suppliers and customers in South Africa.
Sasol CEO and president Fleetwood Grobler said: “Our business continues to be impacted by a volatile operating environment and continued operational challenges.
“Despite this, we delivered a stronger performance in the quarter with our operational mitigating plans in SA starting to show early signs of improvement. We continue to focus our efforts on navigating external challenges while improving operational stability and maintaining our safety focus”.
The group said the energy business continued to benefit from a stronger oil price and refining margin environment, with operational mitigation plans showing early signs of business improvement.
“In the chemicals business, while overall demand and supply chain constraints have improved in recent months, prices, unit margins and demand remain below historical levels,” Sasol said.
Sasol said a coal stockpile of 2 million tons was achieved at the end of the third quarter of the 2023 financial year, the company was targeting to maintain similar levels at the end of June 2023.
“The coal stockpile remains well above our target, supporting consistency in coal blending and supply to our operations,” it said.
The group reported that export sales were 24% lower compared to the prior period, mainly due to ongoing operational challenges at Transnet Freight Rail and the diversion of export coal to Secunda Operations.
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