Sasol Reports Audited Financial Results Amidst Ongoing Challenges for 2025 Fiscal Year

Sasol Limited Audited Financial Results for the Year Ended June 30, 2025

Sasol Limited recently published its audited financial results for the fiscal year ending June 30, 2025, presenting a mixed performance in light of challenging global market conditions. CEO Simon Baloyi acknowledged that this year's financial outcomes demonstrate the decisive measures the company is taking to reshape its operations for future success. These include cost management initiatives and optimizing capital expenditure, which contributed to a notable increase in free cash flow and a stronger balance sheet.

Key Financial Highlights

The company reported that free cash flow after tax, interest, and capital expenditure jumped by 75% to R12.6 billion. Earnings before tax benefitted from non-recurring items such as a significant net cash settlement of R4.3 billion from Transnet and a reduction in environmental rehabilitation provisions amounting to R2.9 billion. However, these profits were somewhat tempered by lower unrealized gains amounting to R2 billion, comparing negatively to last year's R4.7 billion.

Despite the increase in free cash flow, total turnover experienced a decline of 9%, settling at R249 billion. This downturn was attributed to a 15% drop in the Rand oil price, compounded by reduced refining margins and a slight drop in sales volume. The adjusted EBITDA for the year was R51.8 billion, reflecting a 14% decrease from prior metrics.

Management's disciplined approach to cost and capital expenditure helped maintain cash fixed cost increases below inflation for the year. Capital expenditures dropped to R25.4 billion, marking a 16% reduction compared to the previous year.

Impairments and Earnings

Impairments for the year totaled R20.7 billion, significantly lower than the R74.9 billion recorded the previous year. A substantial portion of this figure, R13 billion, was attributed to the Secunda and Sasolburg liquid fuel refinery cash-generating units (CGUs), which remain fully impaired. Although management initiatives aimed at improving the recoverable amounts were introduced, these efforts were counteracted by less favorable macroeconomic price trends.

Earnings per share (EPS) exhibited a dramatic turnaround, with basic earnings soaring over 100% to R10.60 per share compared to a devastating loss of R69.94 the previous year. Additionally, headline earnings per share saw a 93% uplift, reaching R35.13.

Enhancing its liquidity position, Sasol succeeded in closing a R5.3 billion ZAR floating rate bond issuance in July 2025. This move aligns well with the company’s strategy of better aligning the currencies of its regional liabilities and cash flow while ensuring lower associated costs.

Looking Ahead

As Sasol navigates its path forward, it continues to advance its strategic priorities aimed at restoring the Southern Africa value chain, resetting International Chemicals, and fulfilling its growth ambitions despite the external operational complexities. The company’s strategic focus remains on delivering sustainable long-term value to stakeholders while adapting to the evolving market environment.

Conclusion

In summary, while Sasol faces a tumultuous global landscape fraught with challenges, the company's proactive measures this fiscal year have yielded positive outcomes in several key financial areas. Baloyi emphasized the importance of these ongoing strategic initiatives as Sasol seeks to solidify its position and secure a sustainable future. The upcoming market call on August 25, 2025, will provide a platform for further insights into Sasol's performance and strategic outlook.

For investors and stakeholders looking for comprehensive insights into the company's financial health, the complete audited financial statements are accessible through the company's official website.

Contact: For more inquiries regarding Sasol's financial results, reach out to Tiffany Sydow at the Sasol Investor Relations team.