Chemicals and energy multinational Sasol expects to report a 66% to 76% increase in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) to between R30.9-billion and R32.7-billion for the six months ended December 31.

That compares with Ebitda of R18.6-billion reported for the six months ended December 31, 2020.

Sasol attributed the higher Ebitda to a strong recovery in Brent crude oil and chemical prices, partly offset by lower sales volumes for chemicals and energy.

"Improved Brent crude oil price, refining margins and chemical prices resulted in a notable gross margin improvement from the prior half-year, combined with strong cost and capital expenditure performance. These benefits were partly offset by operational challenges in our South African value chains, which resulted in lower production," Sasol notes.

Earnings a share are expected to be between R22.81 and R25.15, compared with R23.41 in the prior comparable period.

Headline earnings a share (HEPS) are expected to decrease by between 16% and 26% to between R14.25 and R16.17.

Core HEPS are expected to be between R22.13 and R22.91, compared with R7.86 in the prior comparable period.

Notable non-cash adjustments, before taxation, for the six months under review, include unrealised losses of R4.9-billion on the translation of monetary assets and liabilities and valuation of financial instruments and derivative contracts.

Additional notable non-cash adjustments include remeasurement items net gain of R5.8-billion, mainly owing to a gain of R4.9-billion on the realisation of the foreign currency translation reserve on the divestment of Sasol Canada’s shale gas assets and a R1.4-billion reversal of impairment on the Chemicals Work Up & Heavy Alcohols value chain owing to a higher price outlook on the back of a sustained increase in demand for alcohols into the personal hygiene market during and post the Covid-19 pandemic.

Sasol will release its 2022 interim financial results on February 21.