by Gerhard Engelbrecht | May 8, 2020 | Chemicals
Spot prices still point to heavy losses in FY21 (R27.74/share). Key drivers remain the low oil price compounded by negative crack spreads. All chemical prices are lower than our expectations.Oil prices and refining margins increased in the last week, but...
by Gerhard Engelbrecht | Apr 28, 2020 | Chemicals
Price weakness: Many of Sasol’s product prices are at multiyear lows, impacted by lower oil prices and broad demand destruction.Fuel prices: Sasol’s fuel prices in South Africa have declined to the lowest levels since 2005 as oil prices declined and...
by Gerhard Engelbrecht | Apr 24, 2020 | Chemicals
At spot prices Sasol’s losses deepen and we now estimate the company will earn a large loss in 2H20 with a full year loss of R5.84/share. The loss in FY21 increases to R36.99/share. Large losses on currency, ethane and oil hedges contribute to the loss in...
by Gerhard Engelbrecht | Apr 17, 2020 | Chemicals
Spot earnings for FY21 dropped down to a loss of R22.51/share this week due to lower oil prices but also the significant decline in crack spreads in recent weeks. Petrol cracks remain at negative $5.7/bbl, but diesel cracks have now dropped and are close to...
by Gerhard Engelbrecht | Apr 14, 2020 | Chemicals
World Petrochemical Conference: In the last week, IHS hosted the World Petrochemical conference online, forums continue into this week.Weak outlook for chemicals: The outlook for chemical profitability remains extremely weak. Global capacity...
by Gerhard Engelbrecht | Apr 8, 2020 | Chemicals
Key assumption changes: We have adjusted our key assumptions for the remainder of FY20 and FY21 and have lowered our FY20 HEPS estimate by 64% to R3.30/share. We have trimmed the FY21 estimate by 3% to R19.15 as the weaker rand offsets lower prices....
