Sasol Shares Slump as Production Issues Weigh on Outlook

Sasol (SSL) shares plunged 11.7% pre-market after the company reported a 9% decline in production volumes in its Secunda operations during the March quarter due to operational challenges. As a result, Sasol revised its production estimates for FY 2024 to 6.9M-7.1M metric tons, down from its previous guidance of 7M-7.3M tons. Despite the production setback, Sasol noted a 4% rise in overall sales volumes but a 20% drop in chemical prices, leading to a 17% revenue decline in its chemicals business. The company anticipates ongoing macroeconomic uncertainty and geopolitical risks to impact its performance in the current quarter.

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