Page 11 - DMEA Week 05 2021

DMEA REFINING DMEA

Sasol predicts strong numbers

for H2 2020

SOUTH AFRICA 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.
The company expects second half of 2020 given the circumstances, on Production in Gabon has risen, thanks to
a 10% fall in EBITDA, the back of cost cutting. three wells coming on stream in early 2020, but
however. 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 con-
($1.19-1.33bn). Its core earnings in the first half tending with a second COVID-19 wave. Diesel
of 2019 were ZAR19.8bn. consumption has returned to nearly pre-pan-
Sasol attributed this decline to a 23% fall in demic 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. ™
PETROCHEMICALS

SABIC shortlists banks for

specialty chemicals IPO

SAUDI ARABIA SAUDI petrochemicals giant SABIC has short- SABIC’s performance improved further in
listed Citigroup, Morgan Stanley and other the fourth quarter, with the producer last week
SABIC earns around banks to manage an initial public offering (IPO) reporting a SAR2.22bn ($592mn) net profit
$2bn in annual of its specialty chemicals division, sources have for the period, versus a SAR890mn loss a year
revenues from specialty told Bloomberg. earlier.
chemicals. The company, now part of national oil com- “Product prices rose during the fourth quar-
pany (NOC) Saudi Aramco, was reported by ter of 2020, driven by healthy demand and a
the news agency in November to be consulting tightness in the supply/demand balance for
advisors on a potential listing. It is yet to decide some of our key products, which resulted from
where to hold the IPO, although Saudi Arabia outages and rising oil prices,” the company said.
wants to develop its own stock market by getting SABIC gained from both increased sales vol-
more local players to list at its Tadawul exchange. umes and lower sales costs, as well as a reversal
Aramco, which closed the purchase of a 70% of impairment charges. Its EBITDA achieved
stake in SABIC last June, held its own offering at SAR20.2bn.
Tadawul, the world’s biggest, in December 2019. Looking ahead, the company expects a 2-5%
SABIC earns around $2bn in annual rev- growth in sales volumes in 2021, as economic
enues from specialty chemicals. The listing activity recovers from coronavirus (COVID-
would help bolster its finances. The company 19) lows.
finally returned to profit in the three months “This assumes the effective and widespread
ending September 30, generating a net income use of the COVID vaccine around the world,”
of SAR1.09bn ($291mn). This followed three it said. 2021 EBITDA should be “moderately
straight quarterly losses. higher than the previous year.” ™

Week 05 04•February•2021 www. NEWSBASE .com P11