Sasol reported stronger fiscal 2026 operating and financial performance, with adjusted EBITDA increasing 17% to R61 billion as improved production, cost management and stronger fourth-quarter market conditions supported earnings.
The company said sales volumes increased 4%, average Brent crude prices rose 7% and refining margins more than doubled. These benefits were partly offset by a stronger rand and the absence of a R5.5 billion Transnet settlement received in the prior year.
Basic EPS increased 79% to R18.99, while headline EPS increased 9% to R38.31.
Cash generated by operating activities rose 22% to R56.7 billion. Free cash flow fell 5% to R11.9 billion because of higher year-end working capital, although excluding the prior-year Transnet settlement, it rose 26%.
Capital expenditures declined 18% to R21 billion.
Net debt excluding leases fell 11% to $3.3 billion, beating Sasol’s target of less than $3.7 billion. Total debt fell to $5.7 billion, while liquidity remained at about $5 billion.
Sasol is targeting sustainable net debt below $3 billion before resuming dividend payments, and the board did not declare a final dividend because debt remained above that threshold.
Operationally, Secunda achieved its highest annual production in five years. International Chemicals adjusted EBITDA in U.S. dollar terms increased 47%, while an additional 330 MW of renewable energy capacity came online, bringing operating renewable capacity above 500 MW.
KEY QUOTES:
“2026 was a decisive year of delivery against the commitments we set out at our Capital Markets Day. We met or exceeded our commitments across our production and sales metrics, strengthened the foundation business and created a stronger platform for future growth and transformation.”
“Management actions and the more supportive macroeconomic environment during the final quarter translated into robust cash generation and further balance sheet strengthening. We delivered on our 2026 net-debt target of below US$3,7 billion, reducing net debt by 11% to US$3,3 billion.”
Simon Baloyi, President and Chief Executive Officer of Sasol
