Sasol, the South African energy and chemicals group, announced on Tuesday that its chemical sales have declined in fiscal 2023 primarily due to lower prices. The company also warned about the ongoing pricing and demand volatility expected in fiscal 2024.

In the fiscal year ended June 30, the revenue from chemical sales dropped to $8.99 billion, compared to $10.55 billion in fiscal 2022. Despite slightly higher sales volumes, this decrease in revenue was a result of lower prices.

The average sales basket price for the company decreased from $1,656 per ton in the previous year to $1,465 per ton. This decline was attributed to decreased demand. Additionally, the company faced upward pressure on overall unit margins and profitability due to increased feedstock and energy costs.

Sasol's chemical Regional Segments, namely Africa, America, and Eurasia, all achieved sales volumes within the company's expected ranges. In the fourth quarter, sales volumes saw a sequential increase of 5%. The improved production and supply-chain performance in Africa and America contributed to this growth, while Europe and China experienced weaker demand.

Looking forward to fiscal 2024, Sasol anticipates further pricing and demand volatility. The global market, as well as petrochemical markets, carry uncertain sentiment for the company.

Sasol plans to release its fiscal 2023 results on August 23.

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