Sasol delivers stronger FY2026 performance and strengthens financial resilience

Sasol (SSL) reported Q4 2026 earnings with adjusted EBITDA up 17% YoY to ZAR 61B, net debt down 11% to USD 3.3B, and capital expenditure down 18% to ZAR 21B. Secunda production hit a 5-year high at 7.26M tonnes. International Chemicals EBITDA was USD 604M. Free cash flow was ZAR 11.9B, down 5% YoY. The company aims for 2GW of renewable energy by 2030 and targets 34M tonnes of mining production by 2028. Management expects dividend resumption once net debt falls below USD 3B.

Sasol reported a 9% rise in headline earnings per share to R38.31 and a 79% increase in basic earnings per share to R18.99, but withheld dividends due to net debt of $3.3 billion, exceeding its $3 billion limit. Higher oil prices and fuel sales supported earnings, but capital-intensive operations and increased working capital reduced cash available for distributions.

Sasol reported a 9% increase in annual earnings, with headline earnings per share rising to 38.31 rand ($2.38), driven by higher oil prices and stronger fuel sales. The company's net debt of $3.3 billion led to no dividend payment, focusing instead on balance sheet strength. Sasol aims to reduce carbon intensity by expanding renewable energy use, targeting 2,000 MW by 2030.

Sasol reported flat cash fixed costs and 4% higher sales volumes. Working capital exceeded targets due to commodity prices and operational factors. Southern African operations improved, with oil breakeven declining to $49 per barrel. International Chemicals posted higher earnings, with adjusted EBITDA of $604 million. The company remains focused on safety and energy transition, targeting 2 GW of renewable energy by 2030.

Sasol reported FY2026 revenue of R272.1 billion, up 9%, and adjusted EBITDA of R61 billion, up 17%. Net debt fell 11% to US$3.3 billion, but no final dividend was declared due to debt thresholds. EBIT rose 37% to R25.7 billion, and EPS increased 79% to R18.99. Free cash flow was R11.9 billion, down 5%.

South Africa's National Energy Regulator (NERSA) approved Sasol Gas's maximum prices for 2026-2028. End-user price cap set at R97.31/GJ, with a 5% discount for traders. Prices will be adjusted quarterly based on costs, with NERSA oversight. Prices beyond 2028 deferred pending market competition assessment.