Sasol provides business performance update

The company said, “In the Southern Africa business, the ramp-up of the destoning plant is progressing to plan, resulting in average sinks for Q1 FY26 reducing below 14%, which has enabled the phased start-up of the previously closed low coal quality sections and increased coal production for the quarter. The successful destoning commissioning activities led to improved coal quality which, together with improved equipment availability at Secunda Operations (SO), resulted in higher SO production for the quarter. In addition, both Natref and Sasol (SSL)burg delivered improved operational performance. Overall sales volumes for Fuels were higher while volumes in the higher-margin mobility channel continued to grow in line with our sales mix optimisation strategy. Chemicals Africa sales volumes were in line with prior year and quarter but revenue was lower due to lower sales prices associated with persistent market softness. In the International Chemicals business, revenue increased in Q1 FY26 compared to the previous quarter. This improvement was driven by our self-help margin optimisation initiatives and supported by higher sales volumes in the US and stronger pricing in Eurasia, underpinned by stronger Palm Kernel Oil (PKO) prices. This was partly offset by lower average sales prices in the US due to weaker Base Chemicals pricing and product mix. Revenue and adjusted EBITDA were significantly higher compared to Q1 FY25, reflecting improved unit margins and the continued execution of our commercial and operational excellence initiatives. Performance across all our business segments remains within market guidance, and we are making good progress towards delivering on our FY26 financial targets. Specifically, the Southern Africa value chain breakeven oil price for Q1 FY26 is in line with our market guidance of US$55 – 60/bbl, supported by higher production volumes, disciplined cost and capital management. International Chemicals is on track to meet the adjusted EBITDA target of US$450 – 550 million. Despite good progress in delivering against our operating targets, we continue to face macro-economic headwinds, including recent tariff changes, which are impacting financial performance. As global markets adjust to tariff changes, we are actively assessing potential impacts on our operations, supply chain and pricing strategies, and are engaging with industry partners and policymakers to mitigate impacts. We remain focused on what is within our control and delivering on our CMD plans.”