In this report we look at the 2024 full-year results and provide further insights to Sasol valuation. On 20 August, Sasol released its FY24 results, which were characterised by the following:

1. Turnover decreased by 5%, driven mainly by a decrease in the chemicals average sales basket price due to a combination of weak demand and the impact of lower oil, feedstock and energy prices.
2. Core headline earnings per share decreased by 16% mainly due to lower chemical prices. However, earnings per share (EPS) decreased from a profit of R14 per share to a loss per share of R70 per share due to impairments with the largest relating to the US ethane value chain impairment of R59 billion.
3. Sales volumes were slightly higher with higher chemical sales volumes offset by lower energy sales volumes, with total volumes growth contributing R721 million to earnings before interest and tax growth.

Our research supports a buy recommendation.