Wrap Text
Reviewed Financial Results For The Six Months Ended 31 December 2025 And Updated Business Outlook
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(Sasol, the Company or the Equity issuer)
Sasol Financing Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/019838/06)
Company code: SFIE
LEI: 378900A5BC68CC18C276
(Sasol Financing or the Debt issuer)
SHORT FORM ANNOUNCEMENT: REVIEWED FINANCIAL RESULTS FOR THE SIX MONTHS
ENDED 31 DECEMBER 2025 AND UPDATED BUSINESS OUTLOOK
Sasol has released its operating and financial results for the six months ended 31 December 2025
(H1 FY26).
Highlights:
• Turnover of R122,4 billion remained flat compared to prior period, supported by 3% increase in
sales volumes and despite the softer macro environment
• Secunda Operations' (SO) production volumes 10% higher
• Lower cash fixed cost compared to the prior period, reflecting disciplined cost management
• Adjusted EBITDA of R21,0 billion, 12% lower than the prior period
• Earnings before interest and tax (EBIT) of R4,6 billion, 52% lower than the prior period
• Headline earnings per share (HEPS) of R9,27 per share, 34% lower than the prior period
• Capital expenditure of R8,5 billion, 43% lower than the prior period
• Free cash flow improvement to R0,8 billion, more than 100% change from the prior period
• Net debt (excluding leases) of R63,3 billion (US$3,8 billion), representing a net debt to
Adjusted EBITDA ratio of 1,6 times
• FY26 hedging programme concluded, with FY27 hedging programme underway
Statement by Simon Baloyi, Chief Executive Officer of Sasol:
" We are showing consistent progress in the implementation of our strategic initiatives as set out in
our Capital Markets Day plan. This is strengthening our foundation business, helping us to
mitigate ongoing global market volatility and macroeconomic headwinds, building resilience for the
future."
Safety remains our foremost value, and we endeavour to send everyone home safely each day.
Unfortunately, we did not, as we lost one of our team members in September 2025. While this loss
weighs heavily on us, we are seeing an encouraging improvement in key leading safety indicators.
Our commitment to safety remains unwavering as we continue to embed learnings and reinforce a
strong safety culture across the business.
In the Southern Africa business, we achieved an important milestone in December 2025 when the
destoning plant at Sasol Mining reached beneficial operation in line with plan and improving coal
quality. This, together with higher gasifier availability and no phase shutdown, resulted in a 10%
uplift in Secunda Operations' (SO) production volumes. Disciplined cost and capital management
further supported a lower cash break-even oil price.
The International Chemicals reset strategy is progressing, although market conditions were
weaker than anticipated with lower US ethylene margins and muted market demand. We have
made good progress on lowering our cost base, which supported a 10% increase in Adjusted
EBITDA in US$ terms compared to the prior period.
The Group generated positive free cash flow in the first half of the financial year for the first time in
four years, despite the challenging macro environment. This was supported by the higher sales
volumes, lower cash fixed costs and lower capital expenditure. Importantly, this has been
achieved without compromising asset integrity and safety.
The balance sheet remains a focus area with robust liquidity in place while we continue to hedge
proactively to manage downside risk.
We continue to advance our Grow and Transform strategy. We have secured an additional 300
megawatt (MW) of renewable energy, increasing total secured capacity in South Africa to more
than 1 200 MW, supporting both emission reductions and cost savings.
Our priorities are clear: safe, reliable operations; disciplined cost and capital management;
proactive risk management; and improved cash generation. Consistent execution in these areas is
strengthening resilience and positioning Sasol to deliver sustainable shareholder value."
Financial performance
Sasol continued to make progress on factors within its control despite a challenging macro
environment. Lower cost and capital expenditure supported positive free cash flow generation in
the period.
Adjusted EBITDA of R21,0 billion was 12% lower than the prior period, primarily due to a 17%
decline in the average Rand per barrel Brent crude oil price and lower average US dollar per ton
chemicals basket price. This was partially offset by improved refining margins, 3% higher sales
volumes driven by stronger production performance and lower cash fixed costs.
Earnings before interest and tax (EBIT) of R4,6 billion was 52% lower than the prior period of
R9,5 billion and impacted by non-cash remeasurement items of R7,9 billion. This related mainly to
impairments of R7,8 billion (before tax) compared to R5,7 billion in the prior period, and include
the impairment on the Secunda liquid fuels refinery cash generating unit (CGU) and our
Mozambican Production Sharing Agreement (PSA) gas development.
As a result of the above, basic earnings per share (EPS) decreased by 95% to R0,38 per share
and HEPS decreased by 34% to R9,27 per share compared to the prior period.
Cash generated by operating activities of R11,6 billion declined 34%, mainly reflecting the lower
earnings detailed above. Capital expenditure of R8,5 billion was 43% lower than the prior period.
This was mainly due to no Secunda shutdown, lower Production Sharing Agreement (PSA) project
expenditure in Mozambique and lower capital on environmental compliance programmes as these
near completion. Free cash flow of R0,8 billion increased by more than 100%, supported by the
lower capital expenditure.
Liquidity remains robust at above US$4 billion and we actively manage our debt maturity profile,
maintaining resilience in a volatile market environment.
Total debt decreased to R93,5 billion (US$5,6 billion) compared to R103,3 billion (US$5,8 billion)
at 30 June 2025. Sasol deposited R8,7 billion (US$500 million) on the revolving credit facility and
repaid R812 million on the DMTN. A floating rate bond of R5,3 billion was issued in the period to
31 December 2025. In exchange, US$300 million was received. The issuance supports our efforts
to diversify the funding base, reduce US$ dollar debt exposure and financing costs. In addition, it
provides the flexibility to address upcoming bond maturities using available liquidity if required.
Net debt (excluding leases) ended at R63,3 billion (US$3,8 billion), compared to R65,0 billion
(US$3,7 billion) at 30 June 2025. We continue to prioritise cash generation through our
management actions to meet our full-year net debt target of below US$3,7 billion.
We continue to execute our hedging strategy, with the FY26 programme complete and the FY27
hedging programme underway. During the period, foreign exchange translation losses were
largely offset by gains on derivative instruments. Given the prevailing market conditions, a broader
range of hedging instruments has been utilised to maintain downside protection.
Key metrics
Half year Half year
31 Dec 2025 31 Dec 2024 Change %
Turnover (R million) 122 387 122 102 -
Adjusted EBITDA1 (R million) 21 006 23 949 (12)
EBIT (R million) 4 619 9 533 (52)
Basic earnings per share (Rand) 0,38 7,22 (95)
Headline earnings per share (Rand) 9,27 14,13 (34)
Capital expenditure (R million) 8 495 15 007 (43)
Free cash flow2 (R million) 794 (1 296) >100
Net debt (excluding leases)3 (R million) 63 269 64 964 3
1 Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation, share-based
payments, remeasurement items, change in discount rates of our rehabilitation provisions, all unrealised
translation gains and losses, and all unrealised gains and losses on our derivatives and hedging
activities.
2 Free cash flow is defined as cash available from operating activities less first order capital and related
capital accruals.
3 Comparative number is as at 30 June 2025.
Half year Full year
Net asset value 31 Dec 2025 30 Jun 2025 Change %
Total assets (R million) 339 707 359 555 (6)
Total liabilities (R million) 183 010 201 944 9
Total equity (R million) 156 697 157 611 (1)
Turnover EBIT/(LBIT)1
Half year Half year Half year Half year
31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024
R million R million R million R million
Southern Africa Energy and
Chemicals
14 744 15 347 Mining 2 138 2 291
6 342 6 591 Gas (811) 3 925
52 046 48 845 Fuels 3 082 (998)
28 917 30 748 Chemicals Africa (293) 3 469
International Chemicals
19 010 19 724 America 550 657
20 932 19 921 Eurasia 255 (136)
- - Business Support (302) 325
141 991 141 176 Group performance 4 619 9 533
(19 604) (19 074) Intersegmental turnover
122 387 122 102 External turnover
1 Loss before interest and tax
Dividend
The Company's dividend policy is based on 30% of free cash flow generated, provided that net
debt (excluding leases) is sustainably below US$3 billion. The net debt at 31 December 2025 of
US$3,8 billion exceeds the net debt trigger, therefore no interim dividend was declared by the
Sasol Limited board of directors (the Board).
Updated business outlook
The Group remains on track to achieve its previously communicated guidance, with the following
revisions:
• Capital expenditure expected to be between R22 - R24 billion, R2 billion lower than the
previous guidance of R24 - R26 billion due to ongoing capital optimisation initiatives; and
• International Chemicals Adjusted EBITDA is revised lower to US$375 to US$450 million,
(previously US$450 to - US$550 million) and Adjusted EBITDA margin 8% to 10% (previously
10% to 13%). This is due to a combination of weaker macroeconomic assumptions, softer
market conditions and the unplanned Louisiana Integrated Polyethylene JV LLC ethylene
cracker outage in Q2FY26. Self-help measures continue to be progressed.
The operating environment is expected to remain challenging, given heightened geopolitical
tensions, evolving global trade dynamics and continued softness in certain end markets impacting
financial performance. Our focus on safe and reliable operations and realising more value from
our self-help initiatives will enable stronger free cash flow generation, deleveraging and
sustainable value for our stakeholders.
The information contained in this paragraph has not been reviewed or reported on by Sasol's
auditors. More details on our financial year 2026 outlook is available in our Interim results
presentation available on the Company´s website at www.sasol.com, under the Investor Centre
section: https://www.sasol.com/investor-centre/financial-results
Short-form statement
This announcement has been prepared in compliance with the JSE Listings Requirements and is
the responsibility of the Board and is only a summary of the information in Sasol Limited's
condensed consolidated interim financial statements for the six months ended 31 December 2025.
The condensed consolidated interim financial statements have been reviewed by Sasol's external
auditors, KPMG, who expressed an unmodified review conclusion thereon. Financial figures in this
announcement have been correctly extracted from the condensed consolidated interim financial
statements. The information in this announcement has not been reviewed and reported on by
Sasol Limited's external auditors.
Any investment decision should also take into consideration the information contained in the full
condensed consolidated interim financial statements, published on SENS on 23 February 2026,
via the JSE link. The condensed consolidated interim financial statements, including KPMG's
unmodified review conclusion, are available through a secure electronic manner at the election of
the person requesting inspection, and have been published and can be found on the company's
website, https://www.sasol.com/index.php/investor-centre/financial-results, and can also be
viewed on the JSE link, https://senspdf.jse.co.za/documents/2026/JSE/ISSE/SOL/HY26Result.pdf
Important information
Sasol will present its interim financial results for the six months ended 31 December 2025 on
Monday, 23 February 2026 at 11h00 (SA time). This will be followed by a market call, hosted by
the President and Chief Executive Officer, Simon Baloyi, and Chief Financial Officer, Walt Bruns,
to address questions.
Please connect to the call via the webcast link: https://www.corpcam.com/Sasol23022026
or via teleconference call link:
https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumber=3605690&li
nkSecurityString=89ae33f44
A recording of the presentation will be available on the website thereafter at
https://www.sasol.com/investor-centre/financial-results.
For further information, please contact:
Sasol Investor Relations
Email: investor.relations@sasol.com
Website : https://www.sasol.com/investor-centre/financial-results.
23 February 2026
Equity sponsor: Merrill Lynch South Africa (Pty) Limited t/a BofA Securities
Debt sponsor: Absa Corporate and Investment Bank, a division of Absa Bank Limited
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts, based on
management's current views and assumptions, and which are conditioned upon and also involve
known and unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from those anticipated by such statements. Should one or more of these
risks materialise, or should underlying assumptions prove incorrect, our actual results may differ
materially from those anticipated. Examples of such forward-looking statements include, but are
not limited to, the capital cost of our projects and the timing of project milestones; our ability to
obtain financing to meet the funding requirements of our capital investment programme, as well as
to fund our ongoing business activities and to pay dividends; statements regarding our future
results of operations and financial condition, and regarding future economic performance including
cost containment, cash conservation programmes and business optimisation initiatives; our
business strategy, performance outlook, plans, objectives or goals; statements regarding future
competition, volume growth and changes in market share in the industries and markets for our
products; our existing or anticipated investments, acquisitions of new businesses or the disposal
of existing businesses, including estimates or projection of internal rates of return and future
profitability; our estimated oil, gas and coal reserves; the probable future outcome of litigation,
legislative, regulatory and fiscal developments, including statements regarding our ability to
comply with future laws and regulations; future fluctuations in refining margins and crude oil,
natural gas and petroleum and chemical product prices; the demand, pricing and cyclicality of oil,
gas and petrochemical products; changes in the fuel and gas pricing mechanisms in South Africa
and their effects on costs and product prices, statements regarding future fluctuations in exchange
and interest rates and changes in credit ratings; assumptions relating to macroeconomics,
including changes in trade policies, tariffs and sanction regimes; the impact of climate change, our
development of sustainability within our businesses, our energy efficiency improvement, carbon
and greenhouse gas emission reduction targets, our net zero carbon emissions ambition and
future low-carbon initiatives, including relating to green hydrogen and sustainable aviation fuel;
our estimated carbon tax liability; cyber security; and statements of assumptions underlying such
statements.
Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may",
"endeavour", "target", "forecast" and "project" and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of identifying such statements. By
their very nature, forward-looking statements involve inherent risks and uncertainties, both general
and specific, and there are risks that the predictions, forecasts, projections, and other forward-
looking statements will not be achieved. These risks and uncertainties are discussed more fully in
our most recent annual report on Form 20-F filed on 29 August 2025 and in other filings with the
United States Securities and Exchange Commission. The list of factors discussed therein is not
exhaustive; when relying on forward-looking statements to make investment decisions, you should
carefully consider both the foregoing factors and other uncertainties and events, and you should
not place undue reliance on forward-looking statements. Forward-looking statements apply only
as of the date on which they are made, and we do not undertake any obligation to update or
revise any of them, whether as a result of new information, future events or otherwise.
Please note: One billion is defined as one thousand million, bbl – barrel, bscf – billion standard
cubic feet, mmscf – million standard cubic feet, oil references Brent crude, mmboe – million
barrels oil equivalent. All references to years refer to the financial year ending 30 June. Any
reference to a calendar year is prefaced by the word "calendar".
Date: 23-02-2026 07:05:00
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