Sasol 's Natref oil refinery maintained strong operational performance in its final quarter to June 30 and continued to play a critical role in South Africa's fuel supply and energy security.
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Oil-from-coal and chemicals group Sasol benefited from a strong production performance, particularly at Secunda Operations (SO), and a more supportive macroeconomic backdrop during the last quarter of the financial year to June 30.
SO achieved its highest annual production in the past five years, exceeding market guidance. The success of the destoning project, which kept average sinks below the market guidance range of 12 - 14%, together with increased natural gas availability and stable operations at SO during the quarter, underpinned the performance.
“We focused on the factors within our control, prioritising safety, operational performance, cost, and capital discipline. We leveraged our integrated value chains across regions, ensuring reliable energy and chemical product supply amidst the Middle East (ME) conflict,” the group said in an update ahead of the planned publication of its full financial results on September 1.
The Natref oil refinery maintained strong operational performance in the quarter and continued to play a critical role in South Africa's fuel supply and energy security.
The ORYX GTL plant in Qatar remained offline following earlier gas supply disruptions, with restart activities dependent on stable operating conditions in the region.
Financial 2026 liquid fuels sales volumes were higher than the prior year, with higher refining margins positively impacting earnings, partially offset by hedging losses on crude oil purchases.
However, sales volumes for the quarter were impacted by higher fuel price volatility alongside elevated fuel imports into the South African market, which resulted in higher inventory levels.
Chemicals Africa revenue increased, supported by higher pricing, partly offset by lower base chemicals sales volumes due to planned shutdowns, with overall volumes at the higher end of market guidance.
In the International Chemicals (IC) business, strategic reset initiatives progressed during the quarter. In America, the business benefited from significantly higher market pricing and stable production performance.
In Eurasia, revenue increased due to better management of cost pass-through to support margins, while sales volumes were lower than the previous quarter following the force majeure on certain products where feedstocks were constrained due to the ME conflict.
As a result, IC adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) is expected to exceed the market guidance range of $375 - 450 million.
In response to constrained n-paraffin and LAB (Linear Alkylbenzene) availability globally, Sasol initiated the restart of its paraffin production unit in Augusta, Italy, which was previously mothballed. The restart is expected in the first half of the 2027 financial year.
The phased implementation of the modern ERP (Enterprise Resource Planning) system continued, with the rollout in Germany commencing in July 2026.
Sasol continued to advance its renewable energy programme, with 330 MW brought online in the quarter. This increased operational renewable energy capacity to more than 500 MW of the over 1.2 GW secured.
Sasol continued with its Advanced Materials chemicals growth strategy through a targeted €60m final investment decision in Brunsbüttel in Germany, aimed at expanding specialty alumina capabilities and supporting future demand in high-value end markets.
Sasol and Topsoe have agreed to prepare for the operational wind-down of the Zaffra joint venture, while continuing their collaboration on sustainable aviation fuel (SAF) technology.
Zaffra was an Amsterdam-based joint venture established in 2023 between Sasol and Danish technology provider Topsoe. Its aim was to develop Sustainable Aviation Fuel (SAF).
The group’s 2026 financial metrics were expected to be in line with guidance, with the exception of net working capital, which was higher at year-end due to higher pricing resulting from the ME conflict and fuels inventory build.
The higher fuel inventory would support supply in the first quarter of 2027 during the Natref shutdown, reducing fuel imports.
“Looking ahead, the operating environment is expected to remain volatile, driven by ongoing geopolitical uncertainty in the ME and evolving market dynamics,” the group directors said.
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