Sasol blames 17% decline in Rand per barrel Brent crude oil price
Johannesburg: Sasol has announced that for the six months ended 31 December 2025:
- Earnings are expected to decrease by 89% to 99% compared to the prior period;
- Headline earnings are expected to decrease by 29% to 40% compared to the prior period; and
- Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) is expected to be between R19 billion and R23 billion (prior period adjusted EBITDA of R24 billion), a decrease of 4% to 21% compared to the prior period.
The decrease in earnings for the period was mainly driven by:
- a 17% decline in the average Rand per barrel Brent crude oil price;
- a 3% decrease in the average US$ per ton chemicals basket price; and
- impairments of R7,8 billion (before tax) (summary below), compared to R5,7 billion in the prior period.
The decrease in earnings was partially offset by:
- a >100% increase in refining margin following improved fuel differentials;
- a 3% increase in sales volumes supported by the improved operational performance, and
- a reduction in costs driven by disciplined cost management.
Overall free cash flow generation is expected to improve compared to the prior period despite the lower earnings, due to lower capital expenditure.
