Investing.com -- South African chemicals-and-energy group, Sasol (NYSE:SSL), reported a minor decrease in first-half mining production and a rise in natural gas output, maintaining its full-year guidance for both sectors. Despite these results, the company's shares dropped by 4.7%.
The six months leading up to December 31 were marked by civil unrest in Mozambique, which led to a 3% sequential drop in second-quarter production. The business was further affected by a fire at its Natref refinery.
During the first half, mining saleable production slipped 1% to 15 million metric tons, a slight decrease from the same period in the previous year. Despite the disturbances in Mozambique, natural gas production saw a 2% increase from a year ago, reaching 61.6 billion square cubic feet.
In the fuels unit, production volumes from its Secunda Operations dropped 5% to 3.34 million tons. Total (EPA:TTEF) chemicals sales volumes also saw a decrease, falling 6% to 2.98 million tons. However, revenue managed to increase by 1% to $3.82 billion, driven by an 8% rise in average sales basket price.
Sasol reaffirmed its full-year guidance for its mining and gas divisions. However, within its fuels division, the company revised its volume guidance for Secunda Operations and Natref production downward. Consequently, overall fuels sales volumes are projected to align closely with fiscal 2024 results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.