Sasol (SSL) Chases A Decade Low In Debt

Sasol Ltd reported record production and strong cash flow. CFO Walt Bruns attributed working capital increases to pricing, Natref-related factors, and volumes, expecting normalization by FY27. EVP Antje Gerber discussed restarting a paraffin unit to capture market opportunities and confirmed a 15-20% cost reduction target. Guidance for FY27 International Chemicals is $450M-$600M, assuming no repeat of Q4 FY26 tailwinds. Energy projects and CapEx reductions were also discussed, with a focus on ma

Sasol is retreating from its sustainable aviation fuel (SAF) joint venture, Zaffra BV, due to lack of industry funding. The company will instead leverage existing facilities to produce SAF and explore partnerships in Asia. Sasol reported R16.8-billion in impairments for FY26, including a R3.8-billion impairment on its Mozambican PSA and a R462-million write-off on its CTT project. The company also faces IT-related financial reporting weaknesses.

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.