Sasol H1 EBITDA Drops 12% to R21.0 Billion, Free Cash Flow Positive
Sasol reported H1 FY26 turnover of R122.4 billion with a 3% sales volume increase, adjusted EBITDA of R21.0 billion (-12%), and EBIT of R4.6 billion (-52%). Capex fell 43% to R8.5 billion, delivering R0.8 billion free cash flow (>100% improvement), while net debt stood at R63.3 billion (1.6× EBITDA).
1. H1 FY26 Financial Results
Sasol reported turnover of R122.4 billion for H1 FY26, flat year-on-year, while adjusted EBITDA fell 12% to R21.0 billion and EBIT declined 52% to R4.6 billion, impacted by non-cash impairments and lower commodity prices.
2. Production and Cost Management
Sales volumes rose 3% over the prior period, with Secunda Operations production up 10%, supported by the new destoning plant and higher gasifier availability, while disciplined cost management drove lower cash fixed costs.
3. Capital Expenditure and Cash Flow
Capital expenditure decreased 43% to R8.5 billion, reflecting no Secunda shutdown and completion of compliance projects, which helped generate R0.8 billion of free cash flow—an improvement of over 100%—and reduced net debt to R63.3 billion (1.6× EBITDA).
4. Strategic Initiatives and Outlook
The FY26 hedging programme is complete and FY27 planning is underway, while securing an additional 300 MW of renewable capacity boosts South Africa’s total to over 1 200 MW, reinforcing cost savings and emission reduction goals.