Integrated_Annual_Report_2026 - Flipbook - Page 42
INTRODUCTION
SASOL AT A
GLANCE
DRIVING SUSTAINABLE
VALUE CREATION
EXECUTING
STRATEGY
DELIVERING
BUSINESS VALUE
SUMMARISED FINANCIAL
PERFORMANCE
CORPORATE
GOVERNANCE
SUSTAINABILITY
REPORT
REMUNERATION
REPORT
ASSURANCE/
ADMINISTRATION
STRATEGY CONTINUED
Credibility through disciplined execution
Sasol’s strategy remains relevant despite heightened volatility across the energy and chemicals sectors, characterised by shifting market dynamics and capital constraints.
The focus has sharpened on delivery; stabilising near-term performance, rebuilding momentum and creating the financial headroom to pursue future growth and transformation opportunities.
S1
In Southern Africa,
performance
improvement
efforts are
translating into
tangible outcomes.
SA Brent oil break even
US$49/bbl
S2
Driving disciplined
execution against
the Capital Market
Commitments to
reset and strengthen
the IC business.
EBITDA
US$604m
Coal quality has improved with the destoning plant online, while Mining
initiatives to improve own coal production and reduce external purchases
will continue into FY27. Southern Africa cost competitiveness has improved,
with FY26 breakeven of approximately US$49/bbl achieved, in line with
market guidance. Excluding the macroeconomic tailwinds and the absence
of a Secunda shutdown, the breakeven would have been US$55 – 58/bbl.
This improvement reflects the outcome of focused execution across the value
chain, even against a backdrop of continued external market volatility seen in
FY26 as a result of the Middle East conflict. Operational reliability across the
core asset base has also strengthened, with Secunda sustaining production
above 7,2Mt, significantly improved gasifier availability and Natref improvement
from FY25, demonstrating regained operational control.
Gas continues to play a strategic bridging role, with Mozambique gas solutions
sustaining near-term value while longer-term structural enablers such as
policy, pricing, the production sharing agreement coming online and long-term
LNG options are actively advanced. In the near term, methane rich gas from
Secunda will successfully bridge the supply for external customers until LNG
is available, subject to pricing considerations. In parallel, the emission reduction
roadmap (ERR) has been reset to materially lower capital intensity, avoid
Secunda turndown and better align decarbonisation with value protection.
The strategic reset initiatives are driving disciplined self-help actions, prioritising
cost reduction, portfolio optimisation and operational reliability rather than
reliance on market recovery. Decisive portfolio actions, including mothballing
and closures across selected assets such as European Union (EU) Alkylphenol
and the HF linear alkyl benzene (HF-LAB), US Guerbet alcohols and America
Phenolics, have reduced structural losses and lowered cash fixed costs.
Organisational and operating model simplification as well as commercial
initiatives are progressing, with a targeted 15 – 20% reduction in cash fixed
costs versus FY24 and early benefits already visible in FY25 and FY26
run-rate performance. Approximately US$150 — 200m of Adjusted EBITDA
is directly as a result of the benefit of stronger pricing associated with the
Middle East conflict.
SASOL INTEGRATED REPORT 2026
41
S3
Across business
building, execution
has moved from
concept to delivery.
~510MW
RE is already online
The renewable power platform has
entered scaled execution, and achieving
early cost savings and reducing carbon
intensity aligned with Sasol’s ERR.
Renewable energy trading licence
received and early cost savings and
Scope 2 emission reductions achieved.
Sustainable fuels and products have been
de-risked through early-stage milestones,
including ISCC+ readiness, progression of
Sustainable Aviation Fuel at Natref and the
establishment of technology partnerships,
creating credible development pathways.
