Production and Sales Metrics for the Nine Months Ended 31 March 2025
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(Sasol, the Company, Equity issuer)
Sasol Financing Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/019838/06)
Company code: SFIE
LEI: 378900A5BC68CC18C276
(Sasol Financing, Debt issuer)
PRODUCTION AND SALES METRICS FOR THE NINE MONTHS ENDED 31 MARCH
2025
Sasol has published its production and sales performance metrics for the nine months ended
31 March 2025 on the Company´s website at www.sasol.com, under the Investor Centre
section: https://www.sasol.com/investor-centre/financial-results.
Business performance
Our margins continue to face pressure due to the prevailing global macro-economic
pressures and geopolitical uncertainties. We continue to implement self-help measures
across the business which have protected free cash flow.
In the Southern Africa Energy and Chemicals business, coal quality continues to impact
Secunda Operations (SO). The destoning project to improve the quality of coal is
progressing well and remains on track for completion in H1 FY26, within the previously
communicated cost of less than R1 billion. However, to support gasifier effectiveness for the
period until the destoning plant is in beneficial operation, a management decision was taken
to reduce own coal production by a further ~2mt and replace it with higher quality purchased
coal, which contains lower sinks. Natref experienced a delay in the production ramp up post
the fire incident in January 2025. This delay, as well as an unplanned operational outage at
SO in Q3 FY25 impacted production and consequently fuels and South African chemicals
sales volumes.
Revenue in International Chemicals increased in Q3 FY25 compared to the previous quarter,
mainly driven by higher average prices in both America and Eurasia. However, sales
volumes declined, largely due to operational outages in America. While the business
environment remains challenging, EBITDA has improved as a result of proactive
management initiatives compared to the prior year.
Business updates
In February 2025, we received the renewed atmospheric emissions licenses (AELs) for SO.
The AEL includes the required variation to reflect the appeal decision related to sulphur
emissions from the steam plant boilers. We also received the renewed AEL for Natref,
effective 1 April 2025.
In March 2025, National Treasury published the 2025 Budget Review, signaling a more
supportive carbon tax policy environment for South Africa. Notably, the retention of the 60%
basic tax-free allowance until at least 2030 (versus the previously proposed step-down from
2026) reflects a constructive shift that supports investment certainty and South Africa's
energy transition goals.
Sasol exited the US Phenolics business in March 2025 as part of our ongoing asset
optimisation initiative aimed at improving margins and longer-term competitiveness of the
International Chemicals business. Shutdown and decommissioning activities of both the
Greens Bayou and Winnie sites in Texas are expected to begin later in CY25.
Outlook
On 3 April 2025, the US government announced changes to US import tariffs, followed by a
suspension of these tariffs for most countries for 90 days, announced on 9 April 2025. As
global markets continue to adjust to the recent tariff changes, we are actively assessing the
potential impact on our operations, supply chain, and pricing strategies. Engagements with
the relevant stakeholders are ongoing and we remain focused on ensuring continuity,
mitigating potential disruptions and identifying any upside opportunities for Sasol. We
continue to maintain strong liquidity and strict cost management, which supports our ability
to navigate external uncertainties.
Our ongoing hedging programme aims to ensure downside protection of the balance sheet.
To date, the FY25 hedging programme is now complete, while the FY26 programme is
nearing completion, with only Q4 FY26 oil hedges still open. The average Brent crude oil
floor price for Q4 FY25 is ~US$64/bbl, with FY26 hedge floors averaging ~US$60/bbl.
Please refer to the hedging update on the last page.
Market guidance for Gas, Oryx, SO and Natref remains intact. Aligned with the management
decision taken to reduce own production of poor quality coal and replace it with higher
quality external purchases, Mining's production outlook has been revised downward to 28 -
30 mt. The associated mining cost per ton is now expected to range between R650 - R670
per ton. Fuels sales volumes are expected to decrease to 1 - 3% lower than FY24 largely
due to the supply disruptions. Chemicals Africa sales volumes are also projected to be 2 -
4% lower than FY24, driven by lower SO production and the uncertainty surrounding
ongoing global tariff disputes.
International Chemicals sales volumes are expected to be at the lower end of our previous
guidance, which indicated a 4 - 8% decrease compared to FY24. This is primarily due to the
unplanned Louisiana Integrated Polyethylene LLC (LIP) JV cracker outage in the US and the
uncertainty surrounding ongoing global tariff disputes.
Financial metrics for FY25 remain broadly in line with guidance. Cash fixed cost increase is
expected to remain below inflation and capital expenditure to be at the lower end of our
guided range of R28 - R30 billion.
17 April 2025
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
Date: 17-04-2025 07:05:00
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