Sasol warns of impact on 4th quarter volume outlook from floods

Sasol said on Monday that it has declared force majeure on exports of certain chemical products due to the impact of heavy rains and floods in KwaZulu-Natal province, possibly affecting its fourth-quarter volume outlook.

The floods, which are among the worst to hit KwaZulu-Natal province, have killed 435 people, left thousands homeless and caused at least $ 10 billion ($ 638 million) in infrastructure damage.

“Our volume outlook for 4. FY22 may be affected depending on the extent of infrastructure damage and the timing of recovery and restoration of key infrastructure and utilities,” the petrochemical group said in a statement.

Sasol, the world’s largest producer of fuel products and chemicals from coal, said it has not yet fully assessed the material impact of the floods on the company.

The company said that the conflict in Ukraine and the consequent volatility in energy prices, along with Covid-19 lockdowns in China and rising inflation, will also pose risks to sales volumes and margins in the last quarter of 2022.

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