#Johannesburg #South Africa #Sasol Limited #Business Performance #Q1 FY26

Overview of Sasol's Performance

On October 23, 2025, Sasol Limited disclosed its business performance metrics for the quarter ending September 30, 2025, revealing significant developments on its official website. The report elaborates on the company's objectives to bolster its foundational business amidst the unpredictable global landscape, underscored by ongoing macroeconomic challenges and geopolitical tensions.

Safety and Operational Highlights

Sasol has reiterated that safety is its highest priority, with marked progress achieved in its operations. Notably, the company celebrated a successful fiscal year in mining without fatalities—an important milestone. However, a recent incident at the Thubelisha Colliery has prompted an investigation following a fatality. This tragedy is seen as a sobering reminder of the importance of continual safety improvements in the workplace.

Business Performance Metrics

Sasol reported an encouraging performance in its Southern Africa division, especially with the ramp-up of the destoning plant, leading to a decrease in average sinks below 14%. This development has enabled the phased reopening of previously closed segments due to low coal quality. Coal production has seen a promising increase throughout the quarter, supported by improved equipment availability at Secunda Operations.

Additionally, Natref and Sasolburg reported enhanced operational efficiency, with overall sales volumes for fuels reflecting growth, particularly in the higher-margin mobility channel, aligning with the company's strategy to optimize its sales mix. In contrast, revenue from Chemicals Africa has shown a decline attributed to lower sales prices stemming from a persistent market slump.

In the International Chemicals sector, Q1 FY26 witnessed a revenue increase compared to previous quarters, spurred by margin optimization initiatives and improved sales volumes in the US, alongside stronger pricing in Eurasia, significantly influenced by fluctuations in Palm Kernel Oil prices. However, US sales prices did face some downward pressure due to weaker Base Chemicals pricing and product mix adjustments.

Recent Developments and Future Outlook

This quarter provided clearer insight into Sasol's trajectory amid macroeconomic headwinds. The company has been proactive in managing the implications of recent tariff changes which have begun to impact overall financial performance. Moreover, the UK parent company of Prax SA was placed under administration, but Sasol has taken measures to secure the Natref refinery's operations and product supply continuity.

On the innovation front, Sasol successfully commissioned the second of three new low-carbon boilers at the Natref refinery, enhancing steam reliability and furthering decarbonization goals.

Looking ahead, the company expects its performance across various segments to align with market guidance, emphasizing its commitment to financial targets for FY26. The Southern Africa value chain is projected to maintain breakeven oil prices in the USD 55-60 range, supported by increased production volumes and stringent cost controls. The International Chemicals division is also on pace to meet the target adjusted EBITDA of USD 450-550 million.

While Sasol has made commendable strides towards achieving these objectives, the team remains vigilant regarding potential market adjustments and their implications. Sasol aims to sustain engagement with industry partners and policymakers to navigate these challenges effectively while focusing on controllable factors that directly impact their operations and market strategies.

Conclusion

In conclusion, Sasol Limited's publication underscores a resilient business model poised for growth even amid external pressures. Continued commitment to safety, operational excellence, and strategic responsiveness should serve the company well as it moves through the fiscal year 2026 and beyond.