Sasol share price: FY21 results update and trading view
In the below article we summarize FY21 results from Sasol Ltd and take a look at how the share price is reacting to the news.
Sasol ltd FY21 results
Sasol’s FY21 results have benefitted from a much improved performance from the chemicals business as well as initiatives taken to improve the company’s balance sheet. Over the reporting period, Sasol implemented $3.8bn n asset sales to significantly reduce group debt and deleverage the business to levels well below initial targets. The results showed earnings to have come in mid group guidance (released on the 6th of August 2021).
Salient features of the FY21 results are as follows:
- Core headline earnings per share up 84% year on year (y/y)
- Adjusted EBITDA (Earnings Before Interest Depreciation Tax Amortisation) up 38%
- Total debt declined by 46% y/y in FY21
- No dividend declared
Sasol Ltd: technical analysis
The share price of Sasol has reacted negatively to what looked like a solid operational performance, perhaps due to some disappointment in the groups decision to focus on improving cash flow and not declare a dividend for the period.
The share price does however remain in a broad rangebound environment and is currently testing support at the 20375 level. Range traders looking for long entry into Sasol might prefer to see a bullish price reversal before gap support at 19670, in which case a move back towards resistance at 22500 would be targeted. Should gap support not hold, 18610 becomes a further downside support target from the move.
In Summary
- FY21 results showed core headline earnings to have increased by 84% from the previous year
- A balance sheet reset has helped the group lower debt and leverage considerably
- No dividend was declared
- The share price of Sasol is currently testing a key level of support
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
