Sasol Limited ( SSL ) shares are trading lower after it reported its trading statement for FY24.

The company expects an adjusted EBITDA decline of 2% to 17%, falling from R66.3 billion in the previous year to between R54.7 billion and R64.7 billion.

Sasol’s financial results were hurt by challenging market conditions, including low chemicals prices and tight margins.

However, these effects were partially mitigated by a stronger rand, higher oil prices, improved refining margins, and increased sales volumes. Stronger operational performance in the fourth quarter also boosted results in the latter half of the year.

For the year, earnings fell by over 100%, largely due to non-cash adjustments, including a net loss of R55.8 billion after tax (R75.4 billion gross) from impairments.

This included R45.5 billion (net of tax) for the Chemicals America Ethane value chain, R3.9 billion (net of tax) for Chemicals Africa’s Polyethylene, Chlor-Alkali, Polyvinyl Chloride, and Wax value chains, and R5.7 billion (net of tax) for the Secunda liquid fuels refinery, all driven by weaker market conditions and lower pricing.

The results also reflect an R15.3 billion derecognition of deferred tax assets from unutilized losses in Chemicals America and R4.7 billion in unrealized gains from asset translations and financial instrument valuations.

For FY24, Sasol ( SSL ) expects core headline earnings per share (CHEPS) to range between R35.03 and R43.62, down 9% to 27% from the previous year’s R47.71.

Price Action: SSL shares are down 2.38% at $6.97 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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