Sasol (SOL) H1 2026 TU earnings summary

Executive summary

• Focused on stable and reliable operations, with safety as a top priority; Q2 FY26 was fatality-free and safety culture initiatives are ongoing.

• Key milestones achieved, including the destoning plant reaching beneficial operation and all low-quality mining sections now operational, supporting higher production.

• Improved production at Natref and Secunda Operations led to higher fuel sales volumes, while chemicals markets remained soft globally, impacting revenue.

• Strategic initiatives included commissioning a new low-carbon boiler at Natref and approval of an electricity trading license to support integrated power objectives.

Financial highlights

• Saleable coal production for H1 FY26 was 7% lower year-over-year, with external purchases required to balance lower own production.

• Gas production in Mozambique was 4% lower both sequentially and year-over-year, mainly due to natural decline in wells.

• Secunda Operations production increased 6% sequentially and 10% year-over-year; Natref production rose 62% sequentially and 28% year-over-year.

• Liquid fuels sales volumes were up 27% sequentially and 12% year-over-year, driven by higher production and optimized sales mix.

• Chemicals Africa sales revenue declined 3% sequentially and year-over-year, despite a 2% increase in sales volumes.

• International Chemicals America sales revenue fell 9% sequentially and was slightly lower year-over-year; Eurasia revenue dropped 11% sequentially but rose 9% year-over-year.

Outlook and guidance

• FY26 fuel sales volume guidance revised upward to 5–10% higher than FY25, reflecting improved Natref performance.

• Gas production volumes guidance revised downward to 0–5% below FY25 due to project delays and lower demand.

• Chemicals Africa sales volumes expected to be 0–5% higher than FY25, with ongoing uncertainty from global tariff disputes.

• Operating environment expected to remain challenging due to geopolitical tensions and soft end markets.