Sasol profit crimped by operational disruptions in SA

Sasol’s margins from a strong oil price — that boosts the value of its fuel and chemical products — were diluted by operational disruptions including power outages and rail logistics in South Africa.

The company has struggled with the quality of the coal it mines and uses as a feedstock, while international units have experienced volatility in pricing and demand that’s expected to continue for the rest of the year, it said in first-half results. Higher oil prices in the six months through December allowed Sasol to declare its first interim dividend since 2020.

“We remain focused on factors within our control, which include improving productivity and addressing coal quality at our mining operations, remaining agile and managing production rates to match market demand as well as maintaining our cost and capital discipline,” the company said.

Electricity rationing by South Africa’s state-owned utility Eskom, as well as delays to service