BUSINESS PERFORMANCE METRICS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
MWN-AI** Summary
Sasol has released its business performance metrics for the six months ending December 31, 2025, highlighting a focus on operational stability and safety within a challenging macroeconomic environment. Notably, the company achieved a fatality-free quarter in Q2 FY26, reinforcing its commitment to safety culture.
In the Southern Africa segment, the destoning plant reached beneficial operation in December 2025, improving coal quality and allowing previously closed low-quality mining sections to resume operations. This progress, combined with better gasifier availability at Secunda Operations (SO), led to increased production levels. However, gas supply from Mozambique decreased due to anticipated natural declines in the Petroleum Production Agreement asset, although improvements are expected in the second half of FY26.
Sasol's refining operations showed improvement with Natref increasing production, supported by utilizing capacity from Prax South Africa. Consequently, fuel sales volumes have been upwardly revised to 5-10% higher than FY25 due to enhanced Natref performance. Nevertheless, gas production projections were adjusted downward to 0-5% below FY25 levels due to delays and reduced demand.
In the chemicals sector, market conditions remained subdued with lower revenues attributed to decreased prices for US ethylene and Palm Kernel Oil, as well as a temporary outage at the Louisiana Integrated Polyethylene joint venture. Despite these challenges, operational improvements have positioned the business to ramp up sales volumes.
Looking forward, Sasol acknowledges the operational challenges posed by geopolitical tensions and fluctuating demand. The company remains focused on its strategic objectives, including safety improvements and sustainable practices, while implementing hedging strategies to mitigate exposure to oil prices and currency fluctuations.
MWN-AI** Analysis
Based on Sasol's business performance metrics for the six months ended 31 December 2025, there are several key insights that investors should consider for their market strategy.
**Operational Resilience and Safety Prioritization**: Sasol demonstrated unwavering commitment to operational performance and safety, achieving a fatality-free quarter. This dedication is fundamental in a sector where operational disruptions can significantly impact profitability. Investors should view this commitment positively, as it lays a robust foundation for future growth.
**Positive Developments in Southern Africa Operations**: The ramp-up of the destoning plant is noteworthy, as it enhances coal quality and operational efficiency. With formerly closed low-quality operations now back online, Sasol is expected to benefit from increased coal and gas availability, ultimately supporting higher production levels at Secunda Operations. This operational strength should provide resilience against market fluctuations, making Sasol an attractive investment for those seeking stability in energy production.
**Challenges in Chemical Segments**: The international chemicals market remains weak, which casts a shadow over revenue generation in this sector. Reduced US ethylene prices and operational outages at the Louisiana cracker highlight the risky nature of this segment. Investors should remain cautious here, as continued softness could weigh on Sasol's broader financial health.
**Revised Outlook**: The upward revision of fuel sales volumes amid improved Natref performance contrasts with downward adjustments in gas production forecasts. This mixed outlook reflects broader market uncertainties, including geopolitical tensions and demand fluctuations. Investors should factor these elements into their strategy.
Overall, while challenges remain, Sasol’s focus on operational reliability and safety, coupled with strategic improvements in its core businesses, may position it favorably in a volatile market. Investors should carefully weigh these factors, balancing risks against potential rewards.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
JOHANNESBURG, Jan. 22, 2026 /PRNewswire/ -- Sasol has published its business performance metrics for the six months ended 31 December 2025 on the Company's website at www.sasol.com, under the Investor Centre section: https://www.sasol.com/investor-centre/financial-results.
During the quarter, the business remained focused on stable and reliable operational performance, while reinforcing the importance of safety in everything that we do. Progress was made on key Capital Market Day priorities, with discipline and delivery maintained on factors within our control amid a challenging and uncertain macroeconomic environment.
Safety
Safety remains our foremost value and we are pleased to report that Q2 FY26 was fatality-free. Learnings from the fatality at Mining in Q1 FY26 are being embedded, with continued efforts to strengthen the safety culture across our business and ensure every employee returns home safely.
Business performance
In the Southern Africa business, the destoning plant reached beneficial operation (BO) in December 2025, marking an important milestone in improving coal quality. Ramp-up is progressing, with average sinks now tracking the lower end of the 12% -14% guidance range. Given the progress on destoning, all previously closed low-quality mining sections are now fully operational. This, together with improved gasifier and equipment availability at Secunda Operations (SO), supported higher SO production during the quarter.
Gas supply from Mozambique was lower compared to the previous quarter, mainly resulting from the expected natural decline from our Petroleum Production Agreement (PPA) asset. Improvements are expected in FY26 H2 as the Production Sharing Agreement (PSA) ramps up. Gas and coal supply continue to be managed on an integrated basis to support reliable SO operations and value optimisation.
Natref delivered improved production performance during the quarter, further supported by additional volumes from Sasol's utilisation of the Prax South Africa (Pty) Limited (Prax SA) shareholding capacity. Stronger SO and Natref operations supported higher fuels sales volumes and the continued placement of product in higher-margin channels in line with our strategy.
Chemicals market conditions remained soft across all regions, resulting in lower revenue. In Chemicals Africa, sales volumes increased compared to the previous quarter, supported by operational improvements with a continued ramp up in sales volumes in the next half.
In the International Chemicals business, lower US ethylene and Palm Kernel Oil (PKO) pricing and lower volumes weighed on revenue for the quarter. The Louisiana Integrated Polyethylene JV LLC (LIP JV) cracker experienced an extended outage in Q2 FY26. The plant was successfully restarted at the end of December 2025. Our self-help measures continued to deliver benefits, which led to lower costs and capital expenditure.
We continue to hedge our exposure to oil prices and currency movements. Given the prevailing market conditions, a broader range of hedging instruments has been utilised to maintain downside protection.
Business updates
Strengthen the foundation business:
As previously communicated, Sasol received notice in October 2025 that Prax SA filed for business rescue. As agreed with the business rescue practitioners, Sasol continues to operate the Natref refinery, utilising available Prax SA capacity, with product supply remaining uninterrupted.
The previously communicated mothballing and closure programme in our International Chemicals business is progressing to plan.
Grow and Transform:
In Q2 FY26, the third and final new low-carbon boiler at Natref was successfully commissioned, improving steam and operational reliability while supporting our decarbonisation objectives.
In November 2025, the National Energy Regulator of South Africa approved Sasol's electricity trading license application (trading as Nomusize (Pty) Ltd), supporting our integrated power business objectives.
Outlook
Fuel sales volumes for FY26 have been revised upward from 0 - 3% higher than FY25 to 5 - 10% higher, supported by the improved Natref performance. Gas production volumes have been revised down from 0 – 10% above FY25 to 0 - 5% below FY25 due to PSA and Central Térmica de Temane (CTT) delays, as well as lower internal and external demand. Performance across the rest of the portfolio remains in line with market guidance.
Looking ahead, the operating environment is expected to remain challenging, given heightened geopolitical tensions, evolving global trade dynamics and continued softness in certain end markets impacting financial performance.
We remain focused on what is within our control and responding proactively to changes in the operating environment.
22 January 2026
Sandton
Equity Sponsor
Merrill Lynch South Africa Proprietary Limited t/a BofA Securities
Debt Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Disclaimer- Forward-Looking Statements
Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, expectations, developments and business strategies. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" and "project" and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 29 August 2025 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events, and you should not place undue reliance on forward-looking statements. Forward-looking statements apply only as of the date on which they are made and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. Forward looking statements, financial information and targets included in this statement have not been reviewed or reported on by Sasol's auditors.
Media Contact:
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, VP Investor Relations
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
SOURCE Sasol Limited
FAQ**
How have the recent operational improvements at Secunda Operations contributed to the performance metrics for Sasol Ltd. American Depositary Shares SSL for the six months ended 31 December 2025?
Given the lower revenue experienced in the International Chemicals business, what specific strategies is Sasol Ltd. American Depositary Shares SSL implementing to mitigate this impact moving forward?
With the revisions in fuel sales volume projections for FY26, what are the key drivers behind Sasol Ltd. American Depositary Shares SSL’s upward adjustment from 0-to 5-10% higher than FY25?
How are the ongoing geopolitical tensions and global trade dynamics influencing the business performance metrics for Sasol Ltd. American Depositary Shares SSL for the six months ended 31 December 2025?
**MWN-AI FAQ is based on asking OpenAI questions about Sasol Ltd. American Depositary Shares (NYSE: SSL).
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