Sasol to Receive R4.3 Billion from Transnet Settlement

Transnet has announced a settlement of R4.3 billion to Sasol Oil, marking a complete and final resolution of all legal disputes between the two companies, as revealed by Sasol in a Sens statement on Friday. Sasol noted that the payment, excluding VAT, is expected to be made on or before 30 June 2025.

This development follows a High Court ruling in June 2024, which was in favor of Sasol and TotalEnergies, directing Transnet to pay R3.9 billion along with interest.

Read: High court orders Transnet to pay Sasol over R6bn in damages [June 2024]

Sasol’s stock is projected to experience an uptick when trading resumes on the JSE Monday, as this announcement coincided with the market’s closure on Friday.

While Sasol’s shares ended the day more than 2% down, they concluded the week nearly 20% higher, driven by favorable responses to its Capital Markets Day and strategy update earlier that week.

Listen/read: Market’s favoring Sasol and Renergen

Transnet appeal

In the meantime, Transnet has sought permission to appeal the judgment, which is currently under review by the Supreme Court of Appeal.

As a result, the enforcement of the payment has been temporarily halted pending the outcome of the appeal.

In another legal matter, Transnet filed a claim against Sasol in August 2024, seeking to recover R855 million (excluding VAT and interest), with a ruling on that case still pending.

Transnet’s R4.3 billion settlement with Sasol was announced shortly after Finance Minister Enoch Godongwana revealed a new R51 billion government guarantee for the financially troubled ports, rail, and pipelines operator. Recently, the ratings agency Moody’s cautioned about Transnet’s financial state.

Read:
Government to provide R51bn guarantee to Transnet
Transnet is running out of cash, Moody’s warns
Sasol CEO indicates chemical-unit listing could happen before 2030
Sasol adjusts strategy to enhance coal operations with increased renewables
Transnet reports losses, sets aside over R4.7bn for Sasol-Total case [Sep 2024]

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