Integrated_Annual_Report_2026 - Flipbook - Page 67
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
CHIEF FINANCIAL OFFICER STATEMENT
Our financial framework continued to guide the decisions we
made during FY26. Improved operational performance, strict
cost management and disciplined capital allocation created
operating leverage across the business, positioning Sasol to
convert improved market conditions in the latter part of the year
into stronger earnings and further balance sheet strengthening.
While this progress is encouraging, we recognise that it is part
of the ongoing journey to deliver the FY28 commitments we
made at our Capital Markets Day (CMD). Our focus remains on
consistent execution, stronger cash generation and building a
more resilient Sasol.
WALT BRUNS // Chief Financial Officer
Dear stakeholders
FY26 marked another important step in
delivering the commitments we set out at
our CMD and strengthening Sasol’s financial
position. We continued to advance our
strategic priorities to restore the Southern
Africa value chain, reset International
Chemicals and deliver our Grow and
Transform agenda.
The year was characterised by ongoing volatility across energy, refining and chemicals
markets, geopolitical uncertainty and evolving global trade dynamics. However, macro
conditions became more supportive in the fourth quarter following the Middle East
(ME) conflict, and it is important to acknowledge the contribution this made to our
performance. Equally important is that Sasol was better positioned to capture this
benefit as a result of the operational and commercial progress we have made across
the business.
KEY MESSAGES
• Stronger earnings through improved business
delivery and supportive macro conditions
• Continued balance sheet strengthening
through sustainable cash generation and
focused debt reduction
• Improved competitiveness through ongoing cost
and capital discipline
• Enhanced financial resilience and continued
progress towards sustainable shareholder returns
• Proactive risk management with hedging
programme in progress
Salient features
Adjusted EBITDA* of R61 billion, up 17%
compared to prior year, driven by a
combination of management actions and
more supportive macros in the last quarter
Sales volumes increased by 4% to
prior year, through improved operational
performance
Our financial priorities remain unchanged: improving sustainable free cash flow,
reducing debt, allocating capital with discipline and resuming dividends when
appropriate. These priorities continue to guide our decisions and underpin our
commitment to creating long-term value for shareholders and broader stakeholders.
Cash fixed costs remained flat compared
to prior year
Disciplined capital spend of R21 billion,
18% lower than prior year
1
Improve sustainable free
cash flow
2
Deleverage balance
sheet
3
Disciplined capital
allocation
4
Resume dividend
Consistent execution against these priorities over the past two years is delivering
tangible results, strengthening Sasol’s competitiveness and improving financial
resilience. While there is more work to do, we are building a structurally stronger
business that is better positioned to create sustainable value for our shareholders
through the cycle.
Free cash flow decreased by 5% to
R11,9 billion, impacted by elevated working
capital and once-off Transnet settlement
received in prior year
Net debt reduced by 11% to
US$3,3 billion**, with deleveraging
prioritised
Strong liquidity position of ~US$5 billion,
ensuring financial resilience
*
Adjusted EBITDA is calculated by adjusting earnings before
interest and tax for depreciation, amortisation, share-based
payments, remeasurement items, change in discount rates of
environmental provisions, unrealised translation gains and losses
on derivatives and hedging activities.
** Total debt excluding leases less cash and cash equivalents
SASOL INTEGRATED REPORT 2026
66
