Integrated_Annual_Report_2026 - Flipbook - Page 60
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
STRENGTHEN OUR FOUNDATION CONTINUED
International Chemicals continued
SAFETY IS A TOP PRIORITY
HC
OVERVIEW OF THE YEAR
Despite a prolonged industry downturn,
we have strengthened the foundation and
positioned the business to outperform peers by
improving investment discipline, asset reliability,
and regional efficiency.
Sasol advanced a focused strategy to unlock
greater value and build a stronger, more resilient
foundation. This included shifting to a valueover-volume commercial approach, addressing
underperforming assets in Italy, Germany, and
America and improving cost discipline through
standardised processes and collaboration.
As geopolitical developments, particularly in
the Middle East, increased volatility in energy
prices, feedstock availability, and global
trade flows. Sasol responded with agility
by optimising operations and taking timely
decisions to maximise opportunities and limit
downside impacts. This included running
the U.S. crackers at maximum rates and
progressing the ISOSIV restart at the Augusta,
Italy site ensuring reliable supply and continued
customer value. Supported by its diversified
asset base, Sasol rebalanced production,
redirected volumes, and maintained supply
continuity. This agility, combined with stronger
commercial discipline, supported margin
recovery and customer trust.
These actions are reflected in the FY26 results,
including significant year-on-year Earnings
before interest, tax, debt and amortisation
(EBITDA) growth and improved competitive
positioning, with International Chemicals
moving into the middle of the peer group and
well positioned for further progress.
Safety of our people
Safety remains our highest priority and the foundation of how we
operate. We are committed to Zero Harm by protecting the health,
safety and wellbeing of our employees, contractors and communities,
while maintaining safe, reliable and compliant operations across our
global asset base.
During FY26, we strengthened our safety culture through frontline
engagement, refreshed leadership training on safety behaviour,
critical risk management and operational discipline. These efforts
improved process safety performance, reducing both the number
and severity of incidents. However, occupational safety was below
expectations, with increases in the Recordable Case Rate (RCR) and
Lost Workday Case Rate (LWDCR). Targeted improvement plans
have therefore been implemented, particularly in Germany and Italy,
to strengthen hazard identification, risk management, leadership
engagement and safe behaviours. Several sites achieved significant
milestones, Tucson, America achieving two consecutive years, and
Nanjing, China reaching one year without a recordable injury. As
we optimise our portfolio and improve operational performance,
we remain focused on proactive risk management, robust controls,
disciplined safe behaviours and ensuring everyone returns home
safely every day. Through visible leadership, disciplined execution and
continuous improvement, we are working to make Zero Harm a reality
across all operations.
PROGRAMMES AND PERFORMANCE
Chemicals America
Total US$ turnover improved by 13% compared
to the prior year, due to higher cracker
utilisation, recent favourable market conditions
in the aftermath of the Middle East conflict as
well as our ongoing strategic sales initiatives,
offset by a 5% decrease in the average sales
basket price, mostly from lower ethylene
market prices and changes in product mix.
Sales volumes were 20% higher than the prior
year, driven by 28% higher Base Chemicals
sales volumes for FY26, reflecting stronger
cracker availability. Both crackers operated
above nameplate capacity during Q4 FY26.
As a result of our strategic reset initiatives,
higher Base Chemicals margins as well
as improved operational performance,
Adjusted EBITDA% improved from 12% to
17% year-on-year.
MC
Chemicals Eurasia
Total US$ turnover improved by 7% compared
to the prior year, mainly driven by a 13% increase
in the average sales basket price and a more
favourable product mix, partly offset by lower sales
volumes. The increase in the average US$ sales
basket price was supported by strong Q4 pricing,
higher palm kernel oil (PKO) prices, favourable
exchange rates and our ongoing strategic sales
initiatives.
Sales volumes were 5% lower than the prior year,
mostly related to the force majeure on certain
products where feedstocks were constrained due
to the Middle East conflict while we also continue
to prioritise our value-over-volume commercial
strategy.
As a result of our strategic reset initiatives and
improved unit margins, Adjusted EBITDA%
increased from 6% to 8% year on year.
SASOL INTEGRATED REPORT 2026
59
FC
Adjusted EBITDA contribution 2026
64% Chemicals America
36% Chemicals Eurasia
