Sasol Stock Slips After FY Results

Sasol Limited SSL reported results for the year ended June 30, 2021, with earnings before interest and tax (EBIT) of R$16.6 billion compared to a loss before interest and tax of R$111.9 billion in the prior year.
External Turnover for the FY increased by 6.1 Y/Y to R$201.91 billion.
Basic EPS was R$14.57, while Core headline EPS was R$27.74.
The company says a notable gross margin recovery was recorded in H2, supported by the combined impact of higher Brent crude oil and chemicals prices, offset by forex.
Adjusted EBITDA increased by 38% Y/Y to R$48.42 billion.
Sasol recorded Net profit on disposal of businesses of R$2.2 billion, including the Air Separation Units.
Cash generated by operating activities increased by 6% to R$45.1 billion compared to the prior year.
The net debt to EBITDA ratio at June 30, 2021, based on the revolving credit facility (RCF) and US dollar term loan covenant definition, was 1.5 times.
As of June 30, 2021, the company’s liquidity headroom was R$84 billion ($5.9 billion).
The company said its Board believes it is prudent not to declare a dividend at this stage due to the high level of macroeconomic uncertainty.
Price Action: SSL shares are trading lower by 5.21% at $13.82 during the premarket session on Monday.

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