Sasol Stock Slips After FY Results

Sasol Stock Slips After FY Results
  • Sasol Limited SSL reported results for the year ended June 30, 2021, with earnings before interest and tax (EBIT) of R$16.6 billion compared to a loss before interest and tax of R$111.9 billion in the prior year.
  • External Turnover for the FY increased by 6.1 Y/Y to R$201.91 billion.
  • Basic EPS was R$14.57, while Core headline EPS was R$27.74.
  • The company says a notable gross margin recovery was recorded in H2, supported by the combined impact of higher Brent crude oil and chemicals prices, offset by forex.
  • Adjusted EBITDA increased by 38% Y/Y to R$48.42 billion.
  • Sasol recorded Net profit on disposal of businesses of R$2.2 billion, including the Air Separation Units.
  • Cash generated by operating activities increased by 6% to R$45.1 billion compared to the prior year.
  • The net debt to EBITDA ratio at June 30, 2021, based on the revolving credit facility (RCF) and US dollar term loan covenant definition, was 1.5 times.
  • As of June 30, 2021, the company’s liquidity headroom was R$84 billion ($5.9 billion).
  • The company said its Board believes it is prudent not to declare a dividend at this stage due to the high level of macroeconomic uncertainty.
  • Price Action: SSL shares are trading lower by 5.21% at $13.82 during the premarket session on Monday.

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