• Sasol’s spot earnings are higher this week and core earnings for FY21 are at R28.98/share.  FY21 earnings become less sensitive to drivers as the financial year draws to an end.  Spot headline earnings for FY22 is at R53.16/share.  Oil prices were slightly higher and refining margins increased on diesel cracks at $5.00/bbl.
  • Around 36% of the spot earnings upside are derived from chemical prices but it appears that the company is not realising the current high prices in its SA and the US.  Asian monomer prices were flat in Asia, but polymer prices were generally lower.  US ethylene and polyethylene prices were also flat, but ethane prices were higher.
  • From this week we include US energy statistics in the note.  This includes rig rates as well as petroleum supply and inventory charts.

Global chemical news

  • Phillips 66 and Southwest Airlines have entered into an agreement to commercialise sustainable aviation fuel produced from waste materials such as vegetable oils (link).
  • Unilever has created laundry detergent from industrial carbon emissions instead of being manufactured from fossil fuels (link).