Sep 1, 2026 earnings call — Results and strategy update for Sasol
Sasol reported adjusted EBITDA of ZAR 61 billion and highlighted stronger operations, lower capex and improved free cash flow of approximately ZAR 12 billion.
Revenue $9.3B (est $8.5B) · EPS $2.06 (est $1.53)
Key quotes
"The loss of 2 colleagues during the year is unacceptable and deeply regrettable."
"In mining, the implementation of the destoning plant has materially improved coal quality to strengthen Secunda operation by achieving our goal of reducing sinks below 12% --"
"International Chemicals reset is delivering measurable progress and improving competitiveness."
Analyst Q&A 10
Coal purchases and planned coal capex
Q (Sandile Siyaya · Nedbank): The analyst asked why sinks are below 12%, what constrains coal operations, what to expect for external coal purchases, and whether FY'27 coal capex includes shafts, geographic expansion or sustenance.
A: Management said Sasol Mining aims to supply the right coal quality, volumes and competitive cost. They reported lower external coal purchases planned for FY '27 and said capital allocation aligns with a long-term coal supply road map and its quarterly milestones.
Gasifier availability and destoning benefits
Q (Victor Bester): The analyst asked whether gasifier availability is improving, if destoning reduced equipment failures and unplanned shutdowns, and whether resources constrain progress or the FY'27 shutdown.
A: Management said the gasifier program is fully resourced and delivering. They reported destoning reduced certain gasifier component breakdowns (coal locks and ash locks) and they have reduced downtime duration.
Refining margins, crude supply and ADNOC bid
Q (Christian Herrmann): The analyst asked how elevated refining margins affect fuels, whether Middle East conflict changed crude supply and differentials, and if Sasol bid for Shell's downstream assets and how that fits retail strategy.
A: Management said higher crack spreads benefited refining margins and they have a diversified crude supply and longer-term procurement approach. They would not comment on external developments about bidding, and said their strategy is organic retail growth with market share gains.
International Chemicals guidance and Rhine risk
Q (Christopher Nicholson · RMB Morgan Stanley): The analyst asked why FY'27 IC guidance is lower, whether the Rhine low water could affect German operations, and what cracker/PE run rates are assumed for 2027.
A: Management said FY'27 guidance excludes a one-off Middle East tailwind seen in FY'26 and is driven by items under management control like cost reductions, portfolio moves and operational reliability. They said Rhine low water is a known risk but multimodal transport reduced current impact, and both crackers ran above nameplate and are expected to continue if market conditions are profitable.
Alumina volumes and PSA / PT5C updates
Q (Adrian Hammond · SBG): The analyst asked about volume growth and margins at Brunsbüttel alumina, and requested updates on PSA reserves and PT5C progress in Mozambique.
A: Management said alumina at Brunsbüttel is their highest margin IC business with roughly 25% to 30% EBITDA margin and increasing customer demand. On PSA, they have three reserves (two small, one large), are still in appraisal and expect another 2 to 3 years to confirm the larger reserve; PT5C activity is paused while they seek partners and have submitted appraisal plans to the regulator.
"So Adrian, I think when it comes to PSA, we have 3 reserves in PSA, 2 small reserves and one large one." — Victor Bester
CapEx cuts, gas price visibility and market competition
Q (Gerhard Engelbrecht · Absa CIB): The analyst asked where CapEx is being cut and how risk is assessed, whether gas bridging projects can proceed without long-term price visibility from NERSA, and how changing competition and imports affect local market strategy.
A: Management reminded investors that structural oversupply challenges in chemicals remain and they focus on internal measures. They emphasized actions under management control rather than relying on market recovery.
Coal production timeline and target volumes
Q (Sandile Siyaya): The analyst asked what timeline to expect to bring sufficient coal production capacity online to relieve constraints and reach optimal internal supply.
A: Management said an optimal internal supply is about 34 million tonnes. They guided 30 million to 32 million tonnes for FY '27 and reiterated commitment to reach 34 million tonnes from internal collieries by FY '28.
Current run-rate EBITDA / cash flow
Q (Alex Comer · JPMorgan): The analyst asked for an indication of current run-rate EBITDA (monthly or quarterly) to assess potential free cash flow if recent margins continue.
A: Management did not provide a run-rate EBITDA number in this part of the transcript; no direct operational monthly EBITDA or cash flow figure was given.
Follow-up or closeout question
Q (Alex Comer · JPMorgan): The analyst indicated no further questions.
A: There was no management answer; the analyst closed his line saying he had no more questions.
Air quality at Secunda and Boegoebaai hydrogen plans
Q (Sarushen Pillay): The analysts asked which CREA assumptions are disputed about Secunda emissions, if tighter SO2/NOx rules or litigation are a risk and what capital would be needed, and whether Sasol will seek IPP partners for Boegoebaai and if there is interest.
A: Management said they have spent almost ZAR 11 billion on air quality improvements at Secunda since 2018 and described specific measures like low NOx burners and shutting incinerators. They said air quality is complex with multiple sources and they work with government and communities; for Boegoebaai they see strong green hydrogen potential, and key enablers are grid access and port development with IPPs and government involvement to unlock the project.