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Sasol's Half-Year Business Performance Report for FY26

Sasol Limited recently published its business performance metrics for the six months concluding on December 31, 2025. The report, accessible on the company's official website, emphasizes Sasol's commitment to operational stability and safety amidst a fluctuating macroeconomic landscape.

Focus on Safety

Safety continues to be a central pillar of Sasol's operational philosophy. It is noteworthy that the second quarter of fiscal year 2026 (Q2 FY26) saw no fatalities, reflecting ongoing efforts to foster a robust safety culture. The company is actively implementing learnings from a fatal incident in Q1 FY26 to enhance safety protocols and ensure all employees return home safely each day.

Business Performance Highlights

Southern Africa Operations

Within its Southern Africa sector, Sasol achieved a significant milestone with the destoning plant reaching beneficial operation (BO) in December 2025, aimed at upgrading coal quality. The ramp-up phase is in motion, with production tracking in the lower range of guidance (12%-14%). Notably, operations at all previously closed low-quality mining sections have resumed, aided by increased availability of gasifiers and equipment at Secunda Operations (SO), resulting in higher production levels.

Gas supply from Mozambique was lower than anticipated due to a natural decline from the Petroleum Production Agreement (PPA) asset. However, expectations for improvement are set for the second half of fiscal 2026 (H2 FY26) as the Performance Sharing Agreement (PSA) begins to ramp up. Maintaining an integrated approach to gas and coal supply has been critical for optimizing operational reliability at SO.

Instrumental Advances

Natref's production performance improved during this period, bolstered by additional volumes from Sasol's shareholding in Prax South Africa (Pty) Limited. The growth in SO and Natref operations led to increased fuel sales volumes, with a strategic focus on higher-margin sales channels.

Conversely, conditions in the chemicals market were generally subdued, leading to decreased revenue across all regions. Despite this, Chemical Africa reported increased sales volumes, indicating operational improvements. Internationally, lower U.S. prices for ethylene and Palm Kernel Oil (PKO), coupled with reduced volumes, negatively impacted revenues. A prolonged outage at the Louisiana Integrated Polyethylene Joint Venture (LIP JV) cracker added to the challenges, although the facility was successfully restarted at the end of December 2025. Ongoing self-help initiatives resulted in fewer costs and capital expenditures.

Sasol aims to mitigate its exposure to oil price volatility and currency fluctuations through a diverse array of hedging strategies that provide downside protection.

Business Developments

Foundation Strengthening

In response to Prax SA’s business rescue filing in October 2025, Sasol has maintained operations at the Natref refinery, ensuring continuity in product supply while utilizing the available capacity.

The mothballing and closure procedures in the International Chemicals business are proceeding as planned, demonstrating a structured approach to managing operational challenges.

Growth and Transformation Initiatives

The third and final low-carbon boiler at Natref was commissioned in Q2 FY26, enhancing operational efficiency and supporting Sasol’s decarbonization objectives. Furthermore, in November 2025, Sasol received approval from the National Energy Regulator of South Africa for its electricity trading license, promoting integrated power business aspirations.

Forward-Looking Outlook

For FY26, Sasol has adjusted forecast fuel sales volumes upwards, estimating a growth rate of 5%-10% over FY25 due to better performance at Natref. However, gas production forecasts have been revised downwards to 0%-5% below FY25, influenced by friction in the PSA and delays at the Central Térmica de Temane (CTT), along with reduced demand.

Sasol anticipates that the operating environment will remain challenging due to ongoing geopolitical tensions, dynamic global trade conditions, and softness in certain market segments. However, the company is dedicated to focusing on areas under its control and making proactive adjustments to navigate these challenges effectively.

For further inquiries, investors and interested parties are encouraged to reach out to Sasol's Investor Relations team.

Contact Information

Tiffany Sydow, VP Investor Relations
Phone: +27 (0) 71 673 1929
Email: [email protected]

Disclaimer: The language pertaining to future outlook involves inherent risks and uncertainties. Actual results may vary. For detailed risk factors, please refer to our annual report and other filings.