Sasol has reported its strongest Secunda production performance in five years, with most of its 2026 operating metrics meeting or exceeding market guidance.
The company’s operational update for the financial year ended 30 June 2026 highlights improved production and stronger chemicals performance, although higher fuel inventories, an offline international plant and two fatalities tempered the positive results.
Secunda records highest production in five years
Sasol’s Secunda operations exceeded market guidance after recording their highest annual production in five years.
The improvement was driven by more stable operations, increased natural gas availability and the company’s destoning project, which removes unwanted rock from coal before it enters the production process.
According to Sasol, the initiative helped keep average “sinks”, a measure associated with coal quality, below its guidance range of 12% to 14%.
Natref also delivered what the company described as strong operating performance during the final quarter of the financial year.
Fuel sales increase despite market pressure
Liquid fuel sales volumes were higher than in the previous financial year, while stronger refining margins supported earnings.
However, these gains were partly offset by hedging losses linked to crude oil purchases.
During the final quarter, fuel price volatility and increased fuel imports into South Africa placed pressure on sales and resulted in higher inventory levels.
Sasol said the additional fuel stock will help maintain supply during Natref’s planned shutdown in the first quarter of the new financial year, reducing the need for further imports.
Qatar plant remains offline
The company’s ORYX gas-to-liquids plant in Qatar remained offline following earlier gas supply disruptions linked to the conflict in the Middle East.
Sasol said plans to restart the facility depend on more stable operating conditions in the region.
Chemicals business outperforms expectations
Sasol expects adjusted earnings before interest, tax, depreciation and amortisation from its International Chemicals business to exceed its guidance range of $375 million to $450 million.
Its American operations benefited from higher market prices and stable production.
In Eurasia, revenue increased after Sasol passed some higher costs on to customers. However, sales volumes declined as the conflict in the Middle East disrupted feedstock supplies and resulted in force majeure declarations on some products.
Renewable energy capacity expands
The company commissioned an additional 330 megawatts of renewable energy capacity during the quarter.
This increased Sasol’s operational renewable energy capacity to more than 500 megawatts, from a secured pipeline exceeding 1.2 gigawatts.
Safety remains a key concern
Despite improvements in several safety indicators, including hospitalisation rates and fire, explosion and release metrics, Sasol reported two fatalities during the financial year.
The company said safety remains a priority as it continues working to improve operational performance across its business.
The latest update covers operational and sales performance only. Sasol is expected to release its audited full-year financial results and outlook for 2027 on 1 September.
Read SA Business Integrator online
