By: ICN Bureau
Last updated : September 08, 2026 10:08 am
International Chemicals also improved despite difficult market conditions for much of the year
Sasol delivered a stronger financial performance in the year to June 30, 2026, lifting adjusted EBITDA by 17% and basic earnings per share by 79%, while cutting net debt by 11%. But shareholders will have to wait longer for dividends as the chemicals and energy group prioritises further deleveraging.
Adjusted EBITDA rose to R60.7 billion, from R51.8 billion a year earlier, as improved operational performance, tighter cost controls and stronger market conditions in the final quarter boosted the group's results.
Basic earnings per share jumped to R18.99, from R10.60, while headline earnings per share increased 9% to R38.31.
Sasol said sales volumes rose 4%, while cash fixed costs remained flat at R70 billion for the third consecutive year. Capital expenditure fell 18% to R20.9 billion.
President and CEO Simon Baloyi described the year as a turning point in the company's efforts to strengthen its balance sheet and improve operational performance.
"2026 was a decisive year of delivery against the commitments we set out at our Capital Markets Day (CMD), as we met or exceeded our commitments across all our production and sales metrics. We strengthened the foundation business, continued to build resilience and created a stronger platform for future growth and transformation."
The company also highlighted its response to heightened geopolitical risks in the fourth quarter following the conflict in the Middle East and the closure of the Strait of Hormuz.
"The importance of domestic supply of both energy and chemical products and Sasol's role in delivering it was reinforced in the fourth quarter of the financial year following the commencement of the conflict in the Middle East (ME) and associated closure of the Strait of Hormuz.
"We responded by sustaining uninterrupted operations and leveraging our integrated value chain to ensure reliable product supply to customers, while maintaining cost and capital discipline to convert improving market conditions into stronger financial results."
Secunda production hits five-year high
Sasol's Southern African operations provided a major boost, with Secunda recording its highest annual production in five years and exceeding market guidance.
The company attributed the improvement to better coal quality following the successful implementation of its destoning plant, as well as higher equipment availability.
"In Southern Africa, Secunda Operations achieved its highest annual production in five years and exceeded market guidance. This was supported by improved coal quality following the successful implementation of the destoning plant and higher overall equipment availability. These improvements, together with the fourth quarter macroeconomic tailwinds, contributed to a lower oil break-even price."
International Chemicals also improved despite difficult market conditions for much of the year. Sasol said its reset strategy helped strengthen the competitiveness of the portfolio, while US-dollar adjusted EBITDA rose 47%, supported by stronger markets in the final quarter.
Debt reduction remains the priority
Sasol reduced net debt, excluding leases, to US$3.3 billion, from US$3.7 billion, beating its target of getting below US$3.7 billion.
The group said its priority now is to push sustainably below US$3 billion before resuming dividend payments.
"This progress has increased our financial resilience, as we progress towards achieving our net debt target of below US$3 billion on a sustainable basis before the resumption of dividends."
The company's dividend policy provides for the distribution of 30% of free cash flow, provided net debt remains sustainably below US$3 billion. Because debt stood at US$3.3 billion at year-end, the board did not declare a final dividend.
Sasol nevertheless ended the year with liquidity of about US$5 billion, which it said provided a strong financial buffer.
The company also refinanced and extended portions of its debt maturity profile, reducing near-term refinancing risk.
Cash generation pressured by working capital
Cash flow from operations rose 22% to R56.7 billion, reflecting stronger operating performance. However, free cash flow fell 5% to R11.9 billion, mainly because of higher year-end working capital.
Excluding the after-tax Transnet settlement received in the previous year, free cash flow increased 26%.
Sasol said working capital remains a key focus, with net working capital as a percentage of turnover rising to 18.3%, above its guidance range of 15.5% to 16.5%.
The company attributed the increase to higher pricing following the Middle East conflict, additional fuel volumes held at year-end and the use of Prax shareholding capacity at Natref.
Two employees killed during year
Despite progress on several safety indicators, Sasol said safety remained a major concern after two employees died during the year.
"Safety remains our foremost priority. Tragically, we lost two colleagues during the year. While we saw encouraging improvements in several key safety indicators, we remain unwavering in our commitment to strengthen our safety culture and ensure everyone returns home safely."
Sasol also continued its renewable-energy expansion, bringing another 330 MW online during the year. Renewable capacity in operation rose above 500 MW, while total secured renewable energy climbed above 1,350 MW through power purchase agreements.
Baloyi said the company still had work ahead but argued that the year's results showed its strategy was gaining traction.
"The progress achieved during 2026 demonstrates that, while there is still more work to do, consistent execution against our CMD commitments is building a stronger, more competitive and resilient Sasol, better positioned to deliver sustainable shareholder returns."