Sasol Limited Releases Production and Sales Metrics for Q3 FY25

Sasol Limited Reports Q3 FY25 Production and Sales Metrics



Sasol Limited recently shared its production and sales performance metrics for the nine months that ended on March 31, 2025. This information can be accessed on their official website, under the Investor Centre section. The report highlights the operational challenges the company is facing in the current macroeconomic landscape and the strategies being implemented to enhance productivity and maintain cash flow.

Business Performance Overview



The company mentions that they are experiencing pressure on their profit margins due to global economic fluctuations and geopolitical uncertainties. Despite these setbacks, Sasol is taking proactive measures to strengthen its financial position. These self-help initiatives are crucial for ensuring positive cash flow amid a challenging environment.

In the Southern Africa Energy and Chemicals sector, the quality of coal has continued to pose challenges for the Secunda Operations (SO). Progress is being made on the destoning project, which aims to enhance the coal quality. The project is on schedule for completion within the first half of the financial year 2026, with a projected budget of under R1 billion. To support gasifier effectiveness while awaiting the destoning plant's operations, the company has decided to lower its coal production by approximately 2 million tons, substituting it with higher-quality coal purchases that exhibit lower rejects.

Additionally, the Natref facility has faced delays in ramping up production after the fire incident that occurred in January 2025. This setback, along with an unexpected operational outage at SO during the third quarter of FY25, adversely affected the production outputs and subsequent sales volumes for fuels and South African chemicals.

Business Updates



In February 2025, Sasol secured renewed atmospheric emissions licenses (AELs) for the Secunda Operations, which now include necessary variations to address the appeal decision regarding sulphur emissions. A renewed AEL for Natref took effect on April 1, 2025.

The publication of the 2025 Budget Review by National Treasury in March indicates a more favorable carbon tax policy environment in South Africa. The continuation of the 60% basic tax-free allowance until at least 2030 signifies a favorable shift supporting investment stability and South Africa's energy transition objectives.

As part of its asset optimization efforts aimed at improving margins and long-term competitiveness in the international chemicals market, Sasol exited the US Phenolics business in March 2025. Decommissioning activities at the Greens Bayou and Winnie sites in Texas are anticipated to commence later in the calendar year.

Outlook and Market Guidance



The new U.S. import tariffs announced on April 3, 2025, followed by a 90-day suspension for most countries, is prompting Sasol to evaluate potential impacts on its operations and supply chain, ensuring they navigate through these changes effectively.

The company is actively managing liquidity and costs, which positions Sasol better to face external challenges. An ongoing hedging program is also in place to offer downside protection for its financial standing. The hedging strategies for FY25 have been completed, and the FY26 program is nearing completion, with oil hedge floors averaging around $60 per barrel for the next fiscal year.

Despite facing challenges, such as decreased fuel sales volumes—projected to be 1-3% lower than FY24—Sasol remains committed to refining its production processes and adjusting strategies accordingly. In the mining sector, production outlooks have been revised to range between 28 - 30 million tons, with anticipated mining costs adjusted to R650 - R670 per ton.

With the expectations of lower sales volumes across segments driven by production disruptions, Sasol continues to implement rigorous financial control measures to manage costs and maintain competitiveness in the market. Overall, the financial metrics for FY25 are expected to align closely with initial guidance, and capital expenditure remains under scrutiny to stay within the projected R28 - R30 billion range.

For continuous updates and detailed metrics, stakeholders and investors can visit Sasol's official platform. Maintaining strategic focus and adaptability will be critical for Sasol as they strive to overcome operational impediments while pursuing long-term growth initiatives.

Topics Business Technology)

【About Using Articles】

You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.

【About Links】

Links are free to use.