Sasol (SOL) H2 2026 earnings summary

Executive summary

• Delivered or exceeded FY 2026 targets, strengthening the foundation business and advancing the grow and transform agenda, including renewable energy expansion and emissions reduction.

• Achieved strong financial performance in FY26, with significant improvements in operational efficiency, cost discipline, and a robust balance sheet.

• Improved reliability, operational performance, and balance sheet resilience, with a focus on safety despite two fatalities and improved safety culture.

• Brought over 500 MW of renewable energy online, supporting emission reduction and future growth.

• Maintained disciplined capital allocation, cost control, and operational excellence amid volatile macro conditions.

Financial highlights

• Adjusted EBITDA increased 17% to ZAR 61 billion year-over-year; gross margin improved to 46%.

• Turnover increased to ZAR 272.1 billion, a 9% rise from the previous year.

• Free cash flow at ZAR 11.9 billion, up 26% excluding prior year’s once-off benefit; down 5% due to higher working capital.

• Capital expenditure reduced by 18% to ZAR 21 billion, reflecting project completions and capital optimisation.

• Basic earnings per share rose 79% to ZAR 18.99; headline EPS up 9% to ZAR 38.31.

Outlook and guidance

• FY 2027 focus: gasifier turnaround at Secunda, safe shutdown execution, clean fuels project at Natref, and sales volumes 0–5% higher.

• International Chemicals EBITDA guidance for FY 2027: $450–$600 million, reflecting normalization after FY 2026 tailwinds.

• Net debt target remains below $3 billion between FY 2027 and FY 2028; dividend resumption contingent on sustainable deleveraging.

• Continued emphasis on cost discipline, capital efficiency, and cash conversion to meet FY 2028 targets.

• Southern Africa oil breakeven targeted at $53–58/bbl.