Avior Capital Markets - Sasol Limited (103M) Sasol | Finding macro support in uncertain times

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Avior Capital Markets

Wade Napier

Sasol | Finding macro support in uncertain times

Despite announcing delays and capex increases at Lake Charles Chemicals Projects (LCCP), Sasol's (SOL) share price increased by 5.6% over the three-month period ending March 2019. SOL's share price performance over the past three months is due to a 31% YTD increase in Brent crude oil prices, in our view. We held an update with SOL regarding its Q3 '19 performance, however, limited noteworthy developments have occurred since SOL's results at the end of February. Notwithstanding, the outlook for Brent crude, the ZAR and ethane appears better than previously forecast.

10/04/2019 8 EN

Underlying

Sasol Limited

Sasol is engaged in manufacturing and marketing of liquid fuels, gas and chemicals. Co. adds value to coal, oil and gas reserves, using these feedstocks to produce liquid fuels, fuel components and chemicals. Co. mines coal and refines imported crude oil and retails liquid fuel products in South Africa, and produces gas and condensate in Mozambique and oil in Gabon. Co. also supplies fuels to oil companies in South Africa and others in South Africa and sub-Saharan Africa. Co. maintains its chemical manufacturing and marketing operations worldwide. Co. divides its operations into three focused business clusters: South African Energy Cluster, International Energy Cluster and Chemical Cluster.

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ZAE000006896 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Wade Napier

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