Johannesburg, South Africa – Sasol Limited (JSE: SOL; NYSE: SSL) today announced its financial results for the year ended 30 June 2025, demonstrating clear progress in delivering against the strategy and commitments outlined at its Capital Markets Day (CMD) in May 2025.

Sasol delivered a strong cost performance and disciplined capital management, resulting in 75% higher free cash flow compared to the prior year, despite a challenging macroeconomic and operating environment.

Encouraging progress against strategic priorities 

“FY25 has been a pivotal year for Sasol as we mark our 75^th anniversary, and pursue our future with renewed purpose and a clearly defined strategy,” said Simon Baloyi, President and Chief Executive Officer.

“At CMD earlier this year, we outlined a clear set of FY28 deliverables, which were to: restore the reliability and competitiveness of our Southern Africa value chain, drive margin improvement in International Chemicals business, and advance our growth and transformation agenda in a value accretive manner. Further, we committed prioritising the deleveraging of our balance sheet through free cash flow generation and disciplined capital allocation. Today’s results show that we are beginning to deliver on those promises, proof of our commitment to reshaping Sasol into a business that is resilient, competitive, and sustainable.”

He added: “Our Southern Africa operations are on track with our initiatives towards improved reliability and cost efficiency. Profitability in International Chemicals has improved, despite the prolonged downturn in the chemical market. Further, we are continuing to progress our emission reduction roadmap at a significantly lower capital cost than originally anticipated. We are running the marathon we spoke about at CMD — with discipline, pace, and unwavering focus.”

Key highlights include: 

• Southern Africa business: Construction of the Destoning plant is complete, start-up activities have commenced. The plant is on track to be fully online by the end of the calendar year. This development supports the pathway to improving coal quality, restoring Secunda Operations (SO) volumes and increasing cash generation.

Furthermore, Natref has made significant progress towards achieving compliance with Clean Fuels 2 regulation through the installation of its first low carbon boiler. The second low carbon boiler is expected to be commissioned by the end of this month. We achieved an oil breakeven price of US$59/bbl, in line with our target, despite lower SO volumes.

• International Chemicals: Achieved adjusted EBITDA improved by more than US$120 million (US$411million for FY25). Adjusted EBITDA margins increased from 6% to 9%, despite the prolonged downturn in the chemical market – evidence of our reset initiatives and supported by more favourable pricing. The business will build on this momentum into FY26, and ultimately ramping up to achieve the FY28 targets.
• Emission Reduction Roadmap (ERR): Our optimised ERR implementation, including our target of 2GW of renewable energy by 2030, is on track. More than 900 MW of renewable power purchase agreements in South Africa have been secured, up from 750MW in May, together with virtual power purchases at Lake Charles, setting the stage for Sasol’s long-term decarbonisation and energy resilience. Sasol’s third renewable energy (RE) facility, the Damlaagte solar PV plant located near Parys in the Free State, came online on 22 August 2025 and is now feeding 97,5MW of RE into Sasol’s facilities bringing a total of online RE to 169.5 MW.

Building financial resilience 

Sasol Group Chief Financial Officer, Walt Bruns, said Sasol’s full year financial results reflect disciplined execution of the financial framework Sasol outlined in May.

“We have delivered pleasing results in areas within our control particularly margin realisation, managing cash fixed costs, which came in below inflation, and optimising capital spend. These actions are building greater resilience in our business. Importantly, they give us confidence in reaching our net debt target of below US$3 billion between FY27 and FY28, enabling us to reinstate dividends and support investment in future growth and transformation.” 

Highlights of the financial performance include: 

• Free cash flow after tax, interest and first order capital expenditure increased by 75% to R12,6 billion, aided by the receipt of the Transnet legal settlement payment.
• Cash fixed cost increased below inflation through cost-saving initiatives.
• The balance sheet was strengthened by strong free cash flow generation. Net debt (excluding leases) reduced by 11% to US$3,7 billion, and we continue to have a strong liquidity position of more than US$4 billion.
• Basic earnings per share (EPS) increased by more than 100% to R10,60 per share compared to a loss per share of R69,94 in the prior year while headline earnings per share (HEPS) improved by 93% to R35,13 per share. 

Baloyi concluded: 

“We know there’s more to do, but we are clear on the strategic path ahead: strengthen the foundation, unlock value, and drive our transition. The actions taken this year have laid the groundwork, with positive momentum across the business. We will continue to build on this in the years ahead. 

“Our long-term ambition remains unchanged: to build a stronger, more sustainable Sasol that creates value for our stakeholders, including shareholders, people and society.”