Page 11 - AfrOil Week 05 2021

AfrOil PERFORMANCE AfrOil

Sasol predicts strong numbers for H2-2020

MOZAMBIQUE SOUTH Africa’s Sasol has said it expects to to amount to between 114 and 118bn cubic feet
deliver a strong set of financial numbers for the (3.22-3.34bn cubic metres) for the year.
second half of 2020 given the circumstances, on Production in Gabon has risen, thanks to
the back of cost cutting. three wells coming on stream in early 2020, but
In an update on January 29, the state com- the company is in the process of divesting its
pany projected earnings per share of ZAR22.76- assets in the country. It hopes to wrap up sales
24.07 ($1.5-1.9), up from ZAR6.56 a year earlier. by the end of June.
It said its results were “underpinned by a strong South African fuel demand has rebounded
cash cost, working capital and capital expendi- since COVID-19 restrictions were eased,
ture performance.” although Sasol’s sales volumes were still down
However, adjusted EBITDA is anticipated 11% year on year. Its sales were highest in
to drop by as much as 10%, to ZAR17.9-19.8bn December, even while the country was contend-
($1.19-1.33bn). Its core earnings in the first half ing with a second COVID-19 wave. Diesel con-
of 2019 were ZAR19.8bn. sumption has returned to nearly pre-pandemic
Sasol attributed this decline to a 23% fall in levels, while gasoline demand has reached
the rand per barrel price of Brent, lower sales 90-95%; jet fuel use remains, unsurprisingly,
volumes because of the demand destruction subdued.
caused by coronavirus (COVID-19) lockdowns, Sasol has cut runs at its Natref refinery while
and hurricanes that knocked out 300,000 tonnes its Secunda plant continues to produce at full
of production at its Lake Charles complex in the capacity. Gas sales volumes climbed 6% y/y in
US. the six-month period, while methane-rich gas
In Mozambique, external gas sales dropped (MRG) volumes fell 9%.
3% on the year because of weaker demand. The company is due to release its full results
Sasol projects output in the country’s PPA area on February 22. ™

POLICY
Botswana’s energy minister urges rapid

completion of Tshele Hills fuel depot

BOTSWANA LEFOKO Moagi, Botswana’s Minister of Min- sure of in terms of our own supply.”
eral Resources, Green Technology and Energy He also urged Botswana Oil Ltd (BOL) to
Security, has urged the national oil company wrap up the project quickly and on schedule.
(NOC) to speed up construction work on a new “It is within our scope and control to deliver
fuel storage depot in the Tshele Hills. this project in the earliest time possible,” he was
During a tour of the building site in Tshele quoted as saying by Botswana Daily News.
Hills earlier this week, Moagi described the pro-
ject as crucial for Botswana’s energy security.
The country must expand its capacity to store
petroleum products, since it is dependent on
imported supplies, he declared
The need for additional storage capacity has
become even clearer in light of the challenges
faced by Botswana’s main suppliers, he said.
He was referring to refinery outages in South
Africa, traditionally the country’s main supplier.
“As a landlocked country, we get our fuel
supplies from other countries,” he explained. “If
we continue to see threats from our sources and
their refineries going down, it is a sign that very
soon they are going to be servicing their own
first. Therefore, there must be something we are BOL is also expanding the Francistown depot (Photo: Construction Review Online)

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