Sasol Share price Break Above R200 as Oil Prices and Strong Earnings Lift JSE: SOL

Sasol (SSL) agreed to sell its nitrates business to Enaex Africa, retaining a 23% stake. The deal includes ammonia plants in South Africa. Terms were not disclosed. Completion is subject to regulatory approvals. Sasol aims to optimize its portfolio, while Enaex Africa seeks to strengthen its supply chain.

Sasol's U.S.-listed shares rose 9.62% after Bank of America upgraded its rating to buy and raised its price target to 270 rand ($18.86). The analyst expects Sasol's free cash flow to more than double to 33 billion rand ($2.1 billion) in the current fiscal year, potentially allowing the company to reinstate its dividend, which was suspended due to high net debt.

Sasol (SSL) reported fiscal 2026 results with net debt at a 10-year low of $3.3 billion, adjusted EBITDA up 17% to ZAR 61 billion, and improved operational metrics. However, chemical market oversupply and currency headwinds persist. Management expects gradual recovery and maintains cautious outlook on dividends.

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.