Sean Ungerer

Question 1

Sean Ungerer's questions to SASOL (SSL) leadership • Q4 2016

Feb 27, 2017

Question

Sean Ungerer from Arqaam Capital asked for more commentary on the company's view that its intrinsic value is not reflected by its trading multiple. He also questioned if Sasol has actively considered M&A deals, whether it would lift its gearing ceiling, and requested more detail on the profit and margin resilience in the Performance Chemicals segment.

Answer

CEO Stephen Cornell stated that Sasol's EV/EBITDA multiple of around 5x is below the 6-8x of its peers, indicating upside potential. Joint President & CEO Bongani Nqwababa confirmed they evaluate M&A options but are capital constrained and have no intention of breaching the 44% gearing limit. CFO Paul Victor added that Performance Chemicals' operating profit, excluding ammonia, increased 9% year-on-year, driven by strong performance in organics and ethylene.

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Question 2

Sean Ungerer's questions to SASOL (SSL) leadership • FY 2015

Sep 7, 2015

Question

Sean Ungerer of Avior Capital Markets asked if there was an opportunity to reduce the capital expenditure for the Lake Charles cracker, at what oil price the revised dividend cover would become a concern, and whether the high production volumes from Synfuels were sustainable.

Answer

President and CEO David Constable and EVP International Operations Steve Cornell confirmed they are tracking the $8.9 billion cracker budget and it's too early to forecast a reduction. CFO Bongani Nqwababa stated the breakeven oil price is just below $40 per barrel. David Constable guided Synfuels production for the next year to 31.7 million barrels, slightly down from the current 32.9 million but with potential upside.