Sasol’s share price shot up 6.3% yesterday after an annual production report showed mining, and fuel and chemicals production was within guidance, while gas production in Mozambique was higher than expected.
The share price traded at R144.89 after midday yesterday, which although higher on the day was 39.3% below the price it was trading at the year before.
Total mining productivity for the 2024 financial year was 3% higher than the previous year and within market guidance of 975 to 1 100 t/cm/s (tons per continuous miner shift).
Secunda collieries productivity improvement was mainly due to the ongoing full potential programme partly offset by safety incidents, and other operational challenges.
In the fourth quarter, total mining collieries increased by 4% and ended at 1 000 t/cm/s compared to the third quarter. Saleable production for 2024 however declined by 2% due to a reduction in mining sections, and increased discards from the export beneficiation plant.
The reduction in sections was due to a strategy to improve coal quality. The external coal-purchasing programme to supplement own-production continued to help meet Secunda Operations (SO) demand. Export sales volumes improved by 5%, driven by higher production at the Thubelisha colliery and improved Transnet Freight Rail performance.
In Mozambique, gas production was 6% higher and exceeded market guidance of 113 to 119bscf (billion standard cubic feet). This was supported by early production from the PSA Initial Gas Facility in May. Natural gas and methane-rich gas sales volumes in South Africa were 4% and 7% higher.
SO fuel production volumes were 7mt (million tons), within market guidance of 6.9 to 7.1mt and 1% higher than the year before. This was mainly due to a phase shutdown in 2024 relative to a total shutdown in the 2023 financial year.
Fourth quarter production volumes were 9% higher than the third quarter driven by better equipment availability and operations.
Natref’s average run rate was within market guidance of 510 m³/h (cubic metre per hour) – 525 m³/h, and 3% higher than 2023 due to improved refinery availability. The planned shutdown started in the last week of May, with start-up expected this month.
ORYX GTL performance was impacted by the extended shutdown of both trains which required repairs. The utilisation rate for the year was at the lower end of the market guidance of 50% to 60%.
Train 2 commenced operations in April, 2024 while Train 1, now fully operational completed repairs in June. Production was expected to ramp-up in the first quarter of 2025.
Liquid fuels’ sales volumes were within the market guidance but 4% lower than 2023 due to challenges in the South African diesel market and the optimisation of inventory.
Chemicals Africa sales revenue from the South African assets was 11% lower driven by lower prices and offset by higher sales’ volumes.
The average sales basket price was 13% lower due to lower oil prices and weaker global demand.
Chemicals America sales’ revenue was 12% lower. Sales volumes were within the market guidance of 0% to 5% higher.
External sales’ volumes decreased, mainly due to lower sales in Base Chemicals from planned and unplanned outages. The average utilisation rate for the Louisiana Integrated Polyethylene JV Cracker was at nameplate capacity.
The East Cracker was down for the fourth quarter for repairs after the March, 2024 fire but was expected to go back online in the first half of 2025.
The average sales’ basket price was 14% lower due to lower oil, feedstock and energy prices, changes in product-mix and weak demand.
Chemicals Eurasia sales’ revenue was 17% lower from lower prices. Sales volumes were within the positive range of the guidance of -5% to +5%.
Production rates at several units were being managed proactively due to lower demand and to avoid inventory build.
BUSINESS REPORT