Sasol reports strong operational gains

JSE listed energy and chemicals company Sasol has reported steady operational progress for the six months ended December 31, 2025, highlighting the restart of its integrated polyethylene cracker plant in Louisiana in the United States and the achievement of beneficial operation at its Southern Africa destoning plant.

During the reporting period, Sasol said it remained focused on delivering stable and reliable operational performance, while reinforcing safety as a core priority across all its activities.

The company also noted progress on key capital market day priorities, maintaining discipline and execution on factors within its control despite an uncertain and volatile macroeconomic environment.

In Southern Africa, the successful commissioning of the destoning plant marks an important milestone in improving coal quality. Sasol said the ramp up is progressing, and with the advances made in destoning, all previously closed low quality mining sections are now fully operational.

Improved gasifier and equipment availability at Secunda Operations supported higher production during the quarter. However, gas supply from Mozambique was lower than in the previous quarter, largely due to the expected natural decline from Sasol’s petroleum production agreement asset.

The company expects improvements in gas supply over the next six months as the production sharing agreement ramps up, with gas and coal supply continuing to be managed on an integrated basis to support reliability and value optimisation.

Sasol also reported improved production performance at its Natref refinery joint venture, supported by additional volumes from its use of Prax South Africa shareholding capacity.

Stronger Secunda and Natref operations supported higher fuels sales volumes and the continued placement of product into higher margin channels in line with the company’s strategy.

In contrast, chemicals market conditions remained soft across all regions, resulting in lower revenue. In the international chemicals business, lower US ethylene prices, weaker palm kernel oil pricing and reduced volumes weighed on performance.

In the chemicals Africa business, however, sales volumes increased compared with the previous quarter, supported by operational improvements, with further ramp up expected over the next six months.

During the second quarter, from October 1 to December 31, Sasol successfully commissioned the third and final new low carbon boiler at Natref. The boiler improved steam and operational reliability while supporting the company’s decarbonisation objectives.

Sasol confirmed that it received notice in October 2025 that Prax South Africa had filed for business rescue. In line with agreements reached with business rescue practitioners, Sasol continues to operate the Natref refinery using available Prax South Africa capacity, with product supply remaining uninterrupted.

Progress also continued on Sasol’s mothballing and closure programme in its international chemicals business. In November 2025, the National Energy Regulator of South Africa approved Sasol’s electricity trading licence application, trading as Nomusize, supporting the company’s integrated power business objectives.

The company said it continues to hedge its exposure to oil prices and currency movements, using a broader range of hedging instruments to maintain downside protection in current market conditions.

Fuel sales volumes for the full year have been revised upward and are now expected to be between 5 percent and 10 percent higher than the 2025 financial year, supported by improved Natref performance. Gas production volumes, however, have been revised downward to between 0 percent and 5 percent below 2025 levels, reflecting production sharing agreement and Central Térmica de Temane delays, as well as lower internal and external demand.

Looking ahead, Sasol expects the operating environment to remain challenging amid heightened geopolitical tensions, shifting global trade dynamics and continued softness in certain end markets. The company said it will continue to respond proactively to changing conditions.

From a safety perspective, the quarter from October 1 to December 31 was fatality free. Sasol said learnings from a mining fatality in the previous quarter are being embedded across the business, with ongoing efforts to strengthen safety culture and ensure every employee return home safely.