Sasol sees massive 95% drop in earnings
Sasol has seen its earnings drop by 95% amid rising impairments, and the group did not declare an interim dividend for the six months ended 31 December 2025.
“We are showing consistent progress in the implementation of our strategic initiatives as set out in our Capital Markets Day plan,” said CEO Simon Baloyi.
“This is strengthening our foundation business, helping us to mitigate ongoing global market volatility and macroeconomic headwinds, building resilience for the future.”
Turnover of R112.4 billion remained flat compared to the prior period, which was supported by a 3% increase in sales volumes, despite the softer macro environment.
Earnings before interest and tax (EBIT) of R4.6 billion were 52% lower than the prior period of R9.5 billion. The group said that non-cash remeasurement items of R79 billion impacted EBITn.
This relates mainly to impairments of R7.8 billion (before tax), compared to R5.7 billion in the prior period, and includes the impairment of the Secunda liquid fuels refinery cash-generating unit.
It also includes the impairment of the group’s Mozambican Production Sharing Agreement gas development.
With the result, basic earnings per share decreased by 95% to R0.38 per share, and HEPS decreased by 34% to R9.27 per share.
Notably, earnings attributable to shareholders of Sasol Limited stood at R241 million (R0.38 per share).
However, earnings attributable to non-controlling interests in subsidiaries stood at a far higher R614 million.
Cash generated by the operating activities of R11.6 billion declined by 34%, mainly due to lower earnings.
Capital expenditure of R8.5 billion was 43% lower than the prior period. In a positive for the group, free cash flow increased by over 100% to R800 million, supported by the lower capital expenditure.
“The group generated positive free cash flow in the first half of the financial year for the first time in four years, despite the challenging macro environment,” said Baloyi.
“This was supported by the higher sales volumes, lower cash fixed costs and lower capital expenditure. Importantly, this has been achieved without compromising asset integrity and safety.”
The company’s dividend policy is based on 30% of free cash flow, provided that net debt is below $3 billion.
With net debt currently at $3.8 billion, exceeding the debt trigger, the group’s board declared no interim dividend.
| Financials | Half year 31 Dec 2025 | Half year 31 Dec 2024 | Change % |
|---|---|---|---|
| Turnover (Rm) | 122 387 | 122 102 | – |
| Adjusted EBITDA (Rm) | 21 006 | 23 949 | (12%) |
| EBIT (R) | 4 619 | 9 533 | (52%) |
| Basic earnings per share (R) | 0,38 | 7,22 | (95%) |
| Headline earnings per share (R) | 9,27 | 14,13 | (34%) |
| Capital expenditure (Rm) | 8 495 | 15 007 | (43%) |
| Free cash flow (Rm) | 794 | (1 296) | >100% |
| Net debt (excluding leases) (Rm) | 63 269 | 64 964 | 3% |
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