Why Sasol Stock Soared Nearly 10% Higher Today

Sasol has secured a deal to supply sustainable aviation fuel (SAF) to White Desert for its polar trips, marking Africa's first commercial SAF supply agreement. The fuel, produced at Sasol's Natref plant using cooking and vegetable oils, received certification in April. Sasol aims to produce up to 100 million litres of SAF by 2030. White Desert's first flight using Sasol's SAF is scheduled for November.

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 shares (JSE: SOL) rose above R200, closing near R212, driven by stronger full-year earnings (R60.7B profit, R38.31 EPS) and higher oil prices. The company's debt remains a concern, with net debt at $3.3B, and no dividend was paid. Operational challenges and decarbonization efforts also pose long-term risks.

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.