Sasol (SOL) Q1 2026 earnings summary

Executive summary

• Progress continues on CMD plans to strengthen the foundation business and enhance resilience amid macro volatility, tariffs, and geopolitical tensions.

• Safety remains a priority, with a fatality-free year in Mining, though a fatality occurred at Thubelisha Colliery in September 2025.

• Operational improvements in Southern Africa, Natref, and Sasolburg led to higher production and sales volumes in Fuels; Chemicals Africa volumes stable but revenue lower due to market softness.

• International Chemicals saw revenue and adjusted EBITDA rise year-over-year, driven by margin optimization and higher US/Eurasia volumes.

• Measures taken to ensure Natref refinery continuity after Prax SA entered business rescue.

Financial highlights

• Southern Africa value chain breakeven oil price for Q1 FY26 aligns with guidance at $55–60/bbl, supported by higher production and disciplined cost/capital management.

• International Chemicals on track for adjusted EBITDA target of $450–550 million.

• Mining saleable production up 18% sequentially; cost per sales ton within R700–R750 guidance.

• Gas production in Mozambique down 1% sequentially and 4% year-over-year, but full-year volumes expected to be up to 10% above FY25.

• SO Fuels production up 4% sequentially and 9% year-over-year; Natref production up 8% sequentially and 17% year-over-year.

• Liquid fuels sales volumes down 13% sequentially but up 3% year-over-year.

• Chemicals Africa sales revenue down 5% sequentially and year-over-year; sales volumes stable.

• International Chemicals America revenue up 3% sequentially, down 3% year-over-year; Eurasia revenue up 13% year-over-year.

Outlook and guidance

• All business segments performing within market guidance; progress toward FY26 financial targets continues.

• Southern Africa value chain breakeven oil price and International Chemicals EBITDA targets reaffirmed.

• FY26 Mining saleable production expected at 28–30 million tons; Fuels production at 7.0–7.2 million tons; Chemicals Africa and Fuels sales volumes expected to be 0–5% higher than FY25.

• Gas production in Mozambique for FY26 expected to be 0–10% above FY25.