Wedoany.com Report on Feb 24th, Sasol has recently made progress in advancing its strategic objectives, successfully achieving its CMD targets. The report shows revenue of 122.4 billion Rand, remaining largely flat compared to the previous period, despite facing macroeconomic challenges, with sales volume increasing by 3%. Adjusted EBITDA was 21.0 billion Rand, down 12% from the previous period, primarily impacted by declines in oil and chemical prices. EBIT decreased by 52% to 4.6 billion Rand, influenced by non-cash remeasurement items and impairment factors.

In terms of operations, production at the Secunda facility increased by 10%, benefiting from improved gasifier availability and the avoidance of phased shutdowns. Sasol Mining's stone removal plant is now in beneficial operation, enhancing coal quality. The international chemicals reset strategy continues to advance, although market conditions remain weak.

Capital expenditure decreased by 43% to 8.5 billion Rand, resulting in a positive free cash flow of 0.8 billion Rand, the first in four years. This outcome was achieved through stringent cost control and capital expenditure reductions, while ensuring asset integrity and safety were not compromised.

Net debt (excluding leases) stood at 63.3 billion Rand, with a net debt to adjusted EBITDA ratio of 1.6x. Total debt decreased to 93.5 billion Rand, aided by debt repayments and new bond issuances. Liquidity remained strong at over $4 billion, and the company is actively managing its debt maturity profile.

Sasol has also secured an additional 300 MW of renewable energy, bringing the total capacity in South Africa to over 1,200 MW. The company continues to execute its hedging strategy, with the FY26 plan completed and FY27 currently underway, utilizing a broader range of instruments to maintain downside protection, further supporting the achievement of its strategic objectives.