Integrated energy and chemical major Sasol has reported flat turnover of R122,4 billion for the six months ended 31 December 2025 (H1 FY26), despite a softer macroeconomic environment. 

 

The company achieved a 3% increase in sales volumes and delivered a 10% jump in Secunda Operations’ (SO) production volumes, supported by higher gasifier availability and no phase shutdown.

 

“We are showing consistent progress in the implementation of our strategic initiatives as set out in our Capital Markets Day plan. This is strengthening our foundation business, helping us to mitigate ongoing global market volatility and macroeconomic headwinds, building resilience for the future,” said Simon Baloyi, President and Chief Executive Officer, Sasol Limited.

 

Sasol emphasized safety as its core value, noting a tragic loss in September 2025. “While this loss weighs heavily on us, we are seeing an encouraging improvement in key leading safety indicators. Our commitment to safety remains unwavering as we continue to embed learnings and reinforce a strong safety culture across the business,” Baloyi said.

 

In Southern Africa, the destoning plant at Sasol Mining reached beneficial operation in December 2025, improving coal quality and contributing to the production uplift at Secunda.

 

Internationally, the chemicals business faced weaker-than-expected markets, including lower US ethylene margins, but cost reductions supported a 10% increase in Adjusted EBITDA in US dollar terms.

 

Sasol posted Adjusted EBITDA of R21,0 billion, down 12% from the prior period, reflecting a 17% decline in the average Rand per barrel Brent crude oil price and lower US dollar chemicals prices, partially offset by improved refining margins, higher sales volumes, and disciplined cost management.

 

Earnings before interest and tax (EBIT) fell 52% to R4,6 billion, impacted by R7,9 billion in non-cash remeasurement items, including impairments on the Secunda liquid fuels refinery and the Mozambican Production Sharing Agreement gas development.

 

Headline earnings per share (HEPS) dropped 34% to R9,27, while basic EPS fell 95% to R0,38 per share.

 

Cash generation improved despite lower earnings, with operating cash flow at R11,6 billion and capital expenditure of R8,5 billion, down 43% from the prior period. Free cash flow turned positive at R0,8 billion, a more than 100% improvement.

 

Sasol ended the period with net debt (excluding leases) of R63,3 billion (US$3,8 billion), representing a net debt to Adjusted EBITDA ratio of 1,6 times. Total debt decreased to R93,5 billion (US$5,6 billion) from R103,3 billion (US$5,8 billion).

 

The company concluded its FY26 hedging programme and is progressing the FY27 programme. Foreign exchange translation losses were largely offset by derivative gains, with broader hedging instruments deployed to maintain downside protection.

 

Sasol continues to expand its renewable energy footprint, securing an additional 300 megawatts (MW) of renewable capacity in South Africa, bringing the total to over 1 200 MW.

 

“Our priorities are clear: safe, reliable operations; disciplined cost and capital management; proactive risk management; and improved cash generation. Consistent execution in these areas is strengthening resilience and positioning Sasol to deliver sustainable shareholder value,” Baloyi said.