- Turnover remained flat at R122.4 billion with a 3% increase in sales volumes.
- Secunda Operations' production volumes rose by 10% due to improved gasifier availability.
- Capital expenditure decreased by 43% to R8.5 billion, enhancing free cash flow.
- Net debt excluding leases was R63.3 billion, with a net debt to Adjusted EBITDA ratio of 1.6 times.
Financial Performance
Sasol reported a flat turnover of R122.4 billion, supported by a 3% increase in sales volumes despite a challenging macro environment. Adjusted EBITDA was R21.0 billion, 12% lower than the prior period, primarily due to a decline in oil and chemical prices. EBIT fell by 52% to R4.6 billion, impacted by non-cash remeasurement items and impairments.
Production and Operations
Secunda Operations saw a 10% increase in production volumes, attributed to improved gasifier availability and no phase shutdowns. The destoning plant at Sasol Mining reached beneficial operation, enhancing coal quality. The International Chemicals reset strategy is progressing, although market conditions remain weak.
Cost Management and Cash Flow
Capital expenditure decreased by 43% to R8.5 billion, contributing to a positive free cash flow of R0.8 billion, the first in four years. This was achieved through disciplined cost management and lower capital spending without compromising asset integrity and safety.
Debt and Liquidity
Net debt, excluding leases, was R63.3 billion, with a net debt to Adjusted EBITDA ratio of 1.6 times. Total debt decreased to R93.5 billion, supported by repayments and a new bond issuance. Liquidity remains robust at over US$4 billion, with active management of the debt maturity profile.
Strategic Initiatives
Sasol secured an additional 300 MW of renewable energy, increasing total capacity in South Africa to over 1,200 MW. The company continues to execute its hedging strategy, with the FY26 programme complete and FY27 underway, using a broader range of instruments to maintain downside protection.
