Morningstar | Sasol Provides Production Update; Stock Still Looks Fairly Valued
No-moat Sasol provided an update on its fiscal 2019 production metrics that included relatively stable liquids production. For the nine months ended March 31, Sasol produced 1,119 thousand barrels of crude oil a day and condensate compared with 1,117 mboe/d in the year-ago period. However, declines continued with the company’s natural gas production, down 4% to 97.1 billion cubic feet compared with the period ended March 31, 2018. Sasol also reported continued refined products declines to 22.9 mmboe/d from 22.4 mmboe/d in the year-ago period. These interim results are on track with our full-year guidance, and we are maintaining our $31 (ZAR 442) fair value estimate and no-moat rating.Sasol remains in 3-star territory. The shares have declined nearly 25% since August and are now trading near our fair value estimate. While Sasol has an extensive near-term growth portfolio and favorable cost structure, we believe the market finally realized that rising costs driven by inflation will offset the company’s growth potential. The company’s shift toward U.S. operations with its Lake Charles chemical project hasn’t gone smoothly, and the market has responded accordingly.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.