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Sasol Inzalo Public Limited (RF) Group Sasol Limited. JSE: SOL

Sasol Inzalo shares

Background of Sasol Inzalo

  • Sasol Inzalo is a 2008 creation by Sasol. This vehicle was borne from Sasol’s drive to bring in, as many South Africans as possible, to the success that Sasol has enjoyed over the years. In starting this vehicle, one of Sasol’s main motivations was the urge to broaden its shareholder base, and to give effect to Sasol’s commitment to Broad Based Black Economic Empowerment. Sasol’s Level Eight Contributor BBBEE Verification Certificate makes this evident. Sasol as Sasol Inzalo’s parent company, is an international chemical and energy company established on the 26th of September 1950. It is in operation in 33 countries, uses the power of its 30300 people workforce to “develop and commercialise technologies”, build and operate its facilities to create liquid fuels, chemicals and low-carbon electricity. Sasol and Sasol Inzalo are truly South African ventures, being one of the very few companies in South Africa that can truthfully boast of having built two cities –Sasolburg and Secunda. Sasol is listed in both the New York and Johannesburg Stock Exchange.

Sasol Inzalo Shares Growth Driver

  • In North America, the Sasol Group has seen increased capital requirements for the Lake Charles Chemical Project. It however remains confident that it will be successfully implemented and that it will add value to Sasol Inzalo shareholders in the long term. Sasol continues to maintain a high level of focus on risk management and monitoring across the spectrum of the group’s operations. Especially its measures to enhance cybersecurity, and the added focus on efficient and effective project delivery through the formation of its Capital Investment Committee. A value return for shareholders ina depressed oil price scenario is important and Sasol has approved measures to increase its cash conservation target range to between R65 billion and R75 billion up to 2018’s end of financial year. Which stands to positively shape investor confidence, driving Sasol Inzalo shares on an upward trajectory. This strategy has enabled the group to remain flexible. Capital funding requirements and dividend policy of 2,2 to 2,8 times headline earnings cover range. At 30 June 2016, the dividend cover was 2,8 times, compared to 2,7 times the previous year.
  • Sasol Inzalo being a subsidiary and a BBBEE empowerment vehicle of Sasol derives its value from the dividends received from Sasol Limited. It’s share price being affected by the performance of Sasol, as it’s only value generation vehicle. Sasol and Sasol Inzalo have initiated measures since 2012 to streamline its business and sustainably reduce costs. This, coupled with additional response plans to counter the effects of depressed commodity prices, resulted in improved performance in 2016 Through a process involving both internal and external stakeholders,
    Sasol’s Board is quoted as having identified and prioritised these four themes:
     Managing the business sustainably and profitably in a volatile macro-economic environment
    Investing in its people
     Unlocking value by optimising and growing its business
     Promoting sustainability.
    Sasol is looking at unlocking Mozambique’s hydrocarbon potential through Sasol’s on-going drilling campaign. The Mozambican gas industry is poised to play an increasingly important role in the Southern African regional energy landscape, and a major part of Sasol’s future. This will bode well for the Sasol Inzalo share price as this translates to growth prospects for the entire Sasol group.
  • The Sasol Group overall delivered a strong operational performance across most of the value chain. This has particularly seen Sasol Inzalo shares perform slightly better, with the sense that the group’s growth will see better returns for Sasol Inzalo stocks and its shareholders. This has seen an increase (97 000 tons) in Secunda Synfuels’ production volumes to a history high of 7,8 million tons, a 1% increase in Natref production and a 4% increase in production at Sasol’s Eurasian Operations. Finally, Sasol’s Mozambican operation recorded a profit of R1 128 million compared to a profit R1 847 million in the prior year. However volumes increased by 5% as a result of its efforts to de-bottleneck the production facility. This is coupled with the increase in gas transportation capacity to 169 bscf and a full volume offtake by Sasol’s joint electricity operations in Mozambique

Sasol Inzalo Investor Tip

  • Sasol Inzalo share price will rise or fall largely on the performance of Sasol’s financial and operational performance, which has an effect on the dividends upon which Sasol Inzalo’s share worth rests. An increase in Sasol share price will see a direct increase in the stock of Sasol Inzalo. Sasol had liabilities that exceed its asset base on the 31st of December 2014, the difference was R372 million. That is not all there is to it, its financial income of R248 million was mainly used to pay finance costs and capital repayments. This is made more difficult by the fact that it needs to service a R7 billion long-term debt, while its assets amount to R6.9 billion. This sent Inzalo shares on a trade tail spin. This has been made worse by the fact that Sasol’s decline had continued by late December 2015. With the share scheme fighting off increased long-term debt, worth R7.2 billion. With the fluctuation of the economy and a rise in interest rates, the forecast is a rise in Sasol’s debt and a loss in value for Sasol Inzalo.
  • This does not bode well for Inzalo because it holds 16.1 million ordinary shares purchased from the petrochemicals giant and derives its income from Sasol’s dividends. The Sasol Inzalo share price at inception was R366.00, it dropped to R360.00 in January 2016. The same Sasol Inzalo share price then went to R377.00 on the 19thof September 2016 amid live online trading. The financial annotations vary, given this data: There is a strong sentiment among many finance and investment sages that due to Sasol’s expressed guarantees, the 10% rise in share price is likely to happen before the maturation date. Even if Sasol is “technically insolvent”. Another measured opinion is that Sasol Inzalo shareholders should put their stocks up for sale and rather buy the sturdier Sasol stock, today. However, this could prove a bit difficult considering Sasol Inzalo’s portfolio shows low levels of anticipated liquidity.

Sasol Inzalo Major Shareholders

  • Sector

    Materials

  • Industry

    Materials

How to buy Sasol Inzalo Shares

  • Sasol Inzalo : How to buy Sasol Inzalo Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Sasol Inzalo shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Sasol Inzalo and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Sasol Inzalo shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Sasol Inzalo.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/sasol-inzalo">Credits: SA Shares™</a>
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