SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 13
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
OPERATING CONTEXT
External and internal influences impact our ability to do business sustainably
The energy transition and environmental influences have been pivotal in defining the energy and chemical sectors. The global push towards decarbonisation and the economic pressures have
driven the adoption of renewable energy technologies, providing us with an opportunity to lead the role advancing the transition by leveraging our own demand to create momentum and
establish a platform for value-accretive and sustainable growth.
Geopolitical conflicts as well as tariff and trade uncertainties, combined
with South Africa-specific factors, including weak transport and logistics
infrastructure, crime, and socio-political challenges, contributed to a
volatile and difficult-to-predict operating environment. These global
macroeconomic conditions added to pressure on the US dollar, which
contributed to a strengthening trend in the rand exchange rate.
The global crude oil market experienced mixed dynamics during FY25,
impacted by geopolitical tensions that triggered price spikes and an uneven
demand recovery. Refined product demand remained subdued in emerging
markets, while demand declined in Europe. On the supply side, growth in
non-OPEC production and the gradual unwinding of OPEC+ voluntary cuts
added downward pressure on prices.
We anticipate ongoing uncertainty as global geopolitical dynamics evolve. This
will likely influence policy direction, economic growth, inflation, interest rates
and financial markets in diverse ways. In navigating this complex environment,
we employ scenario analysis, resilience testing and hedging strategies to
protect our downside risk and mitigate the impact of external developments
which are outside of our control.
Refinery closures and delays in commissioning new facilities provided
temporary support to refining margins. However, this support is not expected
to be sustained going forward. The global chemicals market remains in a
prolonged downcycle, with limited signs of recovery amid the challenging
macro environment. While some capacity rationalisation has occurred in
Europe and Asia, it has not been sufficient to restore a market equilibrium.
World and South African GDP growth (%)
Average Brent crude oil price (US$/bbl)
18
19
20
40
21
22
23
24
25*
20
Source: S&P Global
Source: IMF, StatsSA, SARB, *Sasol forecast
18,2
17,8
15,4
21
24
25
15,2
15,7
20
12,9
14
14,2
16
18,7
Average exchange rate (R/US$)
18
12
18
19
Source: Reuters
22
23
Year
SASOL INTEGRATED REPORT 2025
21
22
23
Year
Year
20
12
24
74,6
84,7
87,3
92,1
19
54,2
-2,7
-6,2
-6
-8
60
51,2
World
South Africa
-2
-4
80
68,6
0
US$/bbl
2,9
1,0
0,9
3,2
3,3
2,8
100
0,7
2
0,3
4
1,6
% year-over-year
6
3,6
8
3,5
1,9
6,5
5,0
Crude and product markets
R/US$
DRIVER
Financial and
market
Macroeconomic environment
25
