South Africa's Sasol FY26 EBITDA rises 17%, aided by higher oil prices

Sasol

01/09/2026 06:19

Overview
South Africa chemicals and energy firm's FY26 adjusted EBITDA rose 17% on improved operations
FY26 basic EPS up 79% and headline EPS up 9% from prior year
Net debt fell 11% to US$3.3 bln, still above threshold for dividend resumption

Outlook
Sasol aims to reduce net debt to sustainably below US$3 bln before resuming dividends
Company says improving working capital is a key priority for strengthening cash conversion
Sasol will use higher year-end fuels inventory to support planned shutdowns early in 2027

Result Drivers
OPERATIONAL IMPROVEMENTS - Co said improved production and higher equipment availability boosted sales volumes by 4%
COST CONTAINMENT - Sasol maintained cash fixed costs flat for the third year, citing continued cost optimisation initiatives
MARKET TAILWINDS - Higher Brent crude oil prices and refining margins in Q4 supported earnings, though partially offset by a stronger Rand/US$ exchange rate

Company press release: ID:nJseA0005a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Headline EPS
 
ZAR 38.31
 
FY Basic EPS
 
ZAR 18.99
 
FY Adjusted EBITDA
 
ZAR 60.71 bln
 
FY EBIT
 
ZAR 25.69 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the diversified chemicals peer group is "buy."
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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Aug 31 - South Africa's trade surplus at 20.14 billion rand in July

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)