Sasol has reported weak H1/24-25 results, driven by impairments and low volumes against a challenging macro backdrop. The margins weakened, albeit somewhat supported by a better mix and decreased costs. Cash-flow development strengthened, but remained weak. The company foresees some sequential improvement in H2, though medium-term risks persist.
In today's Morning Views publication we comment on developments of the following high yield issuers: TK Elevator, TGS ASA, CABB, Odigeo, Constellium, Asmodee, Sasol, Borr Drilling, Nemak, Victoria, OPmobility (formerly Plastic Omnium), Ithaca Energy, Cirsa, Azelis
In this publication, we review the past year and discuss our outlook for the next 12 months. We begin our discussion with the macro factors at play, including GDP forecasts, the geopolitical landscape and our expectations for cost inflation. We also trace the development of primary markets in the European HY space, and give our view on defaults in general as well as for our coverage universe. We then discuss sector trends and expectations, along with earnings development for companies under our ...
• Romania's parliamentary elections bring the chance for some political stability • Country views: REPHUN, MACEDO to Overweight; ROMANI, TURKEY to Neutral • Corporate trade ideas: We add Buy SASOL 31 and Buy SASOL 31 vs Sell SOAF 32 • We reiterate Buy WESODA 9.375% 31 and amend spread target of WESODA 28 vs TURKEY 28
Markets were calmer last week as investors continue to look towards potential rate cuts in the US in September. Chair Jerome Powell at his Jackson Hole speech on Friday, 23 August, sent strong signals that the Fed is ready to cut key rates. “The time has come for policy to adjust. The direction of travel is clear". Markets now price up to 100bp in US key rates cut till the end of the year and a further 125bp of cuts next year. We view the macro backdrop as supportive for EM credit, while new sup...
Spreads in EM credit markets have generally continued to grind tighter in recent weeks. Valuations across the universe are looking stretched, although over the summer months there remains a lack of likely catalysts for a sell-off. We would prefer to be fairly defensively positioned, with expectations for a likely uptick in issuance in September along with some risks on the macro front if expectations shift more definitively towards further rate hikes or significant recession concerns resurface.
EM credit spreads were more volatile this week as US rates continued to grind higher. We expect further volatility as more issuance enters the EM pipeline, while uncertainty over the macro outlook continues in developed markets.
The general evaluation of SASOL (ZA), a company active in the Integrated Oil & Gas industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 14, 2022, the closing price was ZAR...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Sasol's (SOL) H1 '20 production update provided additional detail on the explosion and fire that occurred at Lake Charles Chemicals Project's (LCCP) low density polyethylene (LDPE) unit. Although SOL offered no clear guidance on when and how much the repairs to the LDPE unit would be, the Group suggested damage was isolated to smaller LDPE sections, leaving major components unaffected. SOL's commentary was calming in our view, accordingly, we believe the 12.9% YTD decline in the counter's shar...
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