Sasol posts stronger FY2026 results and lowers net debt to US$3.3bn

Performance and operations

Improved operational performance in FY2026 (year ended 30 June 2026) and stricter cost and capital discipline translated into stronger earnings. Secunda Operations delivered its highest annual production in five years and sales volumes rose 4%. Sasol maintained uninterrupted operations during the Strait of Hormuz disruption and International Chemicals’ adjusted EBITDA in US dollar terms increased 47% year‑on‑year, helped by stronger Q4 markets.

Financial results and balance sheet

Adjusted EBITDA increased 17% to R61 billion and earnings before interest and tax rose 37% to R25.7 billion. Basic earnings per share were R18.99 and headline earnings per share R38.31. Non‑cash remeasurement items included impairments of R16.8 billion (notably Secunda liquid‑fuels refinery R7.7bn, Polyethylene R3.7bn and the Mozambique PSA development R3.8bn) and unrealised translation and derivative losses of R1.1 billion. Cash generated by operations was R56.7 billion; free cash flow was R11.9 billion, impacted by elevated year‑end working capital; net debt, excluding leases, fell 11% to US$3.3 billion and liquidity stood at US$5 billion.

Capital allocation, renewables and outlook

Capital expenditure declined 18% to R21 billion as major gas and compliance projects concluded and no Secunda shutdown occurred. Sasol brought an additional 330 MW of renewable capacity online (more than 500 MW operational) and secured over 1 350 MW via power‑purchase agreements. The company extended its debt maturity profile through bond exchanges and partial repayments of 2028–2029 maturities. The board did not declare a final dividend because net debt remains above the stated sustainable threshold of US$3 billion. The 2027 oil‑hedging programme is complete and the rand‑to‑US dollar hedging programme is under way.