Sasol reports 93% increase in headline earnings, share rise over 10%

Sasol’s share price shot up over 10% on Monday after headline earnings a share increased by 93% for the year to June 30, as it began to deliver on its Capital Markets Day (CMD) commitments it had outlined in May, and it reported less write downs.

“We have delivered pleasing results in areas within our control particularly margin realisation, managing cash fixed costs, and optimising capital spend. These actions are building greater resilience… they give us confidence in …enabling us to reinstate dividends and support investment in future growth and transformation,” said CFO Walt Burns.

The share price was trading at R119.80 on Monday afternoon on the JSE, continuing a steady recovery since the CMD, but it was still below the R147.96 that it was trading at on the same day a year ago.

Free cash flow increased by 75% to R12.6 billion, aided by the receipt of the Transnet legal settlement payment. The strong free cash flow helped strengthened the balance sheet and debt reduced 11% to $3.7bn, and the group continued to have a strong liquidity position of more than $4bn. Total impairments of R20.7bn were much lower than last year’s R74.9bn.

A 15% lower rand oil price, lower refining margins with fuel price differentials and 3% lower sales volumes resulted in a 9% decrease in turnover to R249bn. Adjusted earnings before interest tax depreciation and amortisation fell 14% to R51.8bn. Capital expenditure fell 16% to R25.4bn compared with the prior year.

“The 2025 financial year has been a pivotal year for Sasol as we mark our 75th anniversary, and pursue our future with renewed purpose and a clearly defined strategy,” said CEO and President Simon Baloyi.

“At CMD, we outlined a clear set of FY28 deliverables, which were to: restore the reliability and competitiveness of our Southern Africa value chain, drive margin improvement in International Chemicals business, and advance our growth and transformation agenda in a value accretive manner. Further, we committed to deleveraging our balance sheet through free cash flow generation and disciplined capital allocation,” he said.

He said the Southern Africa operations were on track from initiatives towards improved reliability and cost efficiency.

Profitability in International Chemicals had improved, despite the prolonged downturn in the chemical market.

The emission reduction roadmap was being progressed at a significantly lower capital cost than originally anticipated, he said.

In the Southern Africa business, start-up had commenced on the destoning plant... The plant was on track to be fully online by the end of the calendar year. The plant aimed to improve coal quality, restore Secunda Operations (SO) volumes and increase cash generation.

Furthermore, Natref had made progress towards compliance with Clean Fuels 2 regulation through the installation of its first low carbon boiler. The second low carbon boiler was expected to be commissioned by the end of this month.

“We achieved an oil breakeven price of US$59/bbl, in line with our target, despite lower SO volumes,” said Baloyi.

The International Chemicals business improved adjusted EBITDA (earnings before interest tax depreciation and amortisation) margins from 6% to 9%, despite the prolonged downturn in the chemical market.

“The business will build on this momentum into the 2026 financial year, and ultimately ramp up to achieve the FY28 targets,” he said.

The target of 2GW of renewable energy by 2030 was on track. More than 900MW of renewable power purchase agreements in South Africa had been secured, up from 750MW in May, together with virtual power purchases at Lake Charles, was setting the stage for long-term decarbonisation and energy resilience.

Sasol’s third renewable energy (RE) facility, the Damlaagte solar PV plant located near Parys in the Free State, came online on August 22, 2025 and was feeding 97.5MW of RE into Sasol’s facilities, bringing a total of online RE to 169.5MW.

“We know there’s more to do, but we are clear on the strategic path ahead: strengthen the foundation, unlock value, and drive our transition. The actions taken this year have laid the groundwork, with positive momentum across the business,” said Baloyi.

BUSINESS REPORT