Sasol (SSL) shares experienced a significant drop of 11.7% pre-market on Tuesday following the company’s announcement of a 9% decline in production volumes at its Secunda operations during the March quarter. This production decline was attributed to reduced equipment availability and operational instability. Despite the quarterly decline, Sasol reported a 3% increase in production over the nine-month period but acknowledged that it would not reach the mid or upper point of its previous guidance. Consequently, the company revised its estimates for FY 2024 production volumes to a range of 6.9M-7.1M metric tons, down from the previous outlook of 7M-7.3M tons. However, Sasol maintained its full-year guidance for liquid fuel sales at 51M-54M barrels. The company also reported a 4% increase in overall sales volumes across regions, but a 20% drop in the average dollar basket price for chemicals resulted in a 17% revenue decline in its chemicals business across Africa, the U.S., and Europe. Sasol anticipates that macroeconomic volatility will persist through the current quarter, with geopolitical risks remaining elevated and potentially impacting its business performance.
Sasol Shares Slump as Production Issues Weigh on Outlook
