Sasol boosts carbon credit buys amid coal expansion, renewable push

Sasol (NYSE:SSL [https://seekingalpha.com/symbol/SSL]) is ramping up its carbon credit purchases as it looks to raise output using coal while also expanding renewable power generation.

The purchase of carbon credits rose to 723 million rand year-on-year.

The Johannesburg-based company, South Africa’s second-largest emitter of greenhouse gases, is working to offset its environmental impact by expanding renewable power generation, even as it seeks to increase production of its core products at the Secunda hub, according to an earnings statement on Monday.

Furthermore, Natref has made significant progress towards achieving compliance with the Clean Fuels 2 regulation through the installation of its first low-carbon boiler, the company said.

The second low-carbon boiler is expected to be commissioned by the end of this month. Sasol said it achieved an oil breakeven price of $59/bbl, despite lower SO volumes.

Additionally, Sasol has taken measures to contain costs and strengthen the balance sheet, Chief Executive Officer Simon Baloyi said in the statement.

Its $3.7 billion of net debt exceeded the $3 billion threshold set by the board that allows a final dividend to be paid.

Basic earnings per share (EPS) increased by more than 100% to R10,60 per share compared to a loss per share of R69,94 in the prior year, while headline earnings per share (HEPS) improved by 93% to R35,13 per share.

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* Seeking Alpha’s Quant Rating on Sasol [https://seekingalpha.com/symbol/SSL/ratings/quant-ratings]
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