Sasol Limited Reports Strong Business Performance Metrics for FY26

Sasol Limited Reports FY26 Business Performance Metrics

Sasol Limited has recently published its business performance metrics for the fiscal year that ended on June 30, 2026. As the global energy and chemical company navigates through challenging times, the report highlights significant operational achievements and a solid strategic direction.

Commitment to Safety and Operational Excellence

The company emphasized that safety is their primary value, achieving an improvement in key safety indicators over the year. Despite the success, two tragic fatalities remind everyone at Sasol of the critical importance of maintaining uncompromising safety standards in all operations. The Sasol team is dedicated to bolstering its safety culture, ensuring that safety remains at the forefront of all their activities.

In Southern Africa, Sasol's Secunda Operations reported its highest annual production figures in five years. This impressive performance not only met but surpassed market expectations. Success stemmed from various operational strategies, including the implementation of a destoning project that maintained average sinks below the targeted range. When natural gas became more available and operations remained stable, it further boosted production outcomes.

Moreover, Natref, Sasol's refinery, continued to demonstrate strong performance, forming a crucial part of South Africa's fuel supply and energy security framework. However, ORYX GTL faced operational challenges, remaining offline due to earlier gas supply disruptions, with a restart hinging on stabilized conditions.

The annual liquid fuels sales volumes showcased an upward trajectory compared to the previous year, attributed to better refining margins. However, this was somewhat countered by losses associated with hedging crude oil purchases. Increased volatility in fuel prices and a surge in fuel imports influenced sales volumes during the quarter, necessitating heightened inventory levels.

Chemical revenue in Africa also saw an increase, primarily fueled by inflated pricing amid planned shutdowns, though total sales volumes remained towards the higher end of market guidance.

International Business Expansion and Strategic Reset

The International Chemicals (IC) sector made substantial strides in its strategic reset, enhancing operational resilience to leverage favorable market conditions. In North America, Sasol experienced a surge in market pricing, bolstering their financial position. Eurasia also reported revenue growth, benefiting from proactive cost management despite a decline in sales volumes following disruptions in feedstocks abroad due to Middle Eastern conflicts. As a result, IC Adjusted EBITDA is set to exceed the anticipated $375 - 450 million.

Sasol has been proactive in managing exposures to crude oil price and currency fluctuations through an effective hedging program, which ensures both downside protection and upside opportunities. The oil hedging program for FY27 is complete while work continues on the ZAR/USD program.

Future Outlook and Business Updates

Looking ahead, Sasol submitted a Maximum Gas Price application to NERSA, with regulatory outcomes pending. Additionally, the company is reinvigorating its paraffin production unit in Augusta, Italy, which had previously been mothballed. The restart is slated for the first half of FY27, showcasing Sasol's commitment to its customer-centric operational ethos.

Renewable energy remains a significant focus for Sasol, with the introduction of 330 MW during the quarter pushing operational capacity above 500 MW of its 1.2GW target. This strategic move aligns with their emissions reduction goals and strengthens the competitiveness of their operations.

Sasol's initiative in Advanced Materials with a planned €60 million investment in Germany aims to bolster specialty alumina production to meet future high-value market demands. The collaboration with Topsoe on sustainable aviation fuel technology will continue, even as the Zaffra joint venture prepares for operational wind-down.

As the company looks toward FY27, its performance metrics are expected to align with or exceed expectations, despite some pressures related to heightened pricing influenced by geopolitical conditions. Sasol remains committed to operational continuity and customer support amid an evolving market environment. Detailed financial results for FY26 will be disclosed on September 1, 2026.

For further details, investors and journalists can reach out to Sasol's Investor Relations. With substantial accomplishments in the past year, Sasol is set to build on its momentum while addressing future challenges head-on.

Disclaimer: This report may contain forward-looking statements that involve risks and uncertainties. Actual future results may vary significantly from the predictions outlined herein. Investors should make decisions based on thorough consideration of all reviewed materials.