#Johannesburg #South Africa #Sasol Limited #Sales Performance #Production Metrics

Sasol Limited Reports Production and Sales Metrics for FY2025

Sasol Limited has released its production and sales performance metrics for the fiscal year ending June 30, 2025. The company reports positive strides in its operational performance amid a challenging macroeconomic landscape characterized by geopolitical uncertainty and market volatility.

Business Performance Overview

In recent months, Sasol has been dedicated to enhancing its resilience through self-help initiatives designed to fortify its core operations. The commitment to these initiatives has yielded promising results, enabling the company to achieve most of its financial guidance for FY25. Despite some hurdles, particularly unplanned disruptions in its Secunda Operations (SO) and Natref, the performance metrics reflect a robust trajectory for the future.

Notably, Sasol's strategy in Southern Africa involved a decision to reduce its coal production in favor of higher quality purchased coal, thereby improving the gasifier performance at Secunda Operations in Q4 FY25. Following a fire incident and subsequent unplanned power outages, Natref reported a recovery in production output during this period, contributing to increased liquid fuels sales, driven by elevated production levels and robust customer demand.

Chemical Segment Performance

In the Chemicals Africa segment, despite the prevailing global market challenges, the average basket price experienced a rise compared to previous quarters. Additionally, Sasol's international chemical operations also reported a sales volume increase in Q4 FY25, primarily attributable to improved production outputs in the US. However, the segment faced challenges due to lower average sales prices, influenced by variable ethylene market conditions.

Despite these challenges, there were promising developments in revenue generation over the quarter, reflecting proactive management actions that enhanced adjusted EBITDA compared to the previous year. Sasol's approach to prioritizing value realization in the Eurasia segment further illustrated its commitment to navigating adverse market conditions.

Strategic Updates and Developments

Sasol's strategic outlined priorities have been effectively communicated since their Capital Markets Day, focusing on reinforcing the foundation of its business model and building a sustainable future. A few significant updates on ongoing projects include:

• - Progress on the mining destoning project, expected to complete within H1 FY26, aims to elevate coal quality for enhanced operational output.
• - The resolution of ongoing legal disputes with Transnet, resulting in a R4.3 billion settlement as of June 30, 2025.
• - Continued operation of Natref amidst changes in ownership structures, with plans currently in motion to evaluate potential impacts on operations and markets.
• - The company's digital transformation achieved a major milestone with a successful pilot launch of the SAP S4/Hana ERP solution in Italy, expected to inform subsequent implementations across the group.
• - Progress on the mothballing of certain plants is in line with the previously communicated timelines, with production already halted at specific sites in both the US and Germany.

In terms of growth and transformation, Sasol has forged a path towards renewable energy. In June 2025, they concluded a significant milestone by securing an additional 160MW of renewable power purchase agreements in Southern Africa, expanding their total access to renewable energy resources. Furthermore, Natref commissioned its first of three new low-carbon boilers, underscoring Sasol's commitment to sustaining steam supply while contributing to emissions reduction efforts.

Financial Outlook

Sasol has maintained strong liquidity and implemented strict cost management practices to support its financial resilience. The company is poised to address market volatility through a proactive hedging program. As a critical update, the US government announced new import tariffs effective August 1, 2025, necessitating further dialogues with stakeholders to ensure business continuity.

Investors await the full financial results for the year ending June 30, 2025, scheduled for release on August 25, 2025. The trading statement disclosed earnings per share (EPS) are projected to increase by over 20% in comparison to the previous year, signaling a potential turnaround from reported losses stemming from substantial impairments last year. Sasol's ongoing commitment to their strategic initiatives and the proactive management of their operations continues to be pivotal to their recovery and future success.

In conclusion, the FY25 metrics exhibited by Sasol Limited highlight the company's adaptability and strategic foresight, fostering optimism for continued growth and resilience in the face of unprecedented challenges.