Sasol flags full-year recovery as margins improve

Sasol expects an increase in its headline earnings per share (Heps) of between 2% and 14% for the year ended 30 June 2026, compared to the prior year. This is the equivalent of R36 and R40 per share.

The JSE-listed petrochemicals giant published a trading update in a Sens on Wednesday, ahead of the release of its full-year results.

Earnings per share (EPS) is expected to be between R17.50 and R19.50, representing an increase of between 65% and 84% compared to the prior year when it was R10.60 per share.

Sasol says the increase in earnings for the year was driven by a more supportive macroeconomic environment during the last quarter of the financial year.

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This includes a 4% increase in sales volumes associated with improved production, a 7% increase in the average oil prices,
a more than 100% increase in refining margins following improved fuel differentials, and lower impairments of R16.8 billion (before tax), compared to R20.7 billion in the prior year.

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There was however a partial offset in earnings caused by:

A 7% stronger average rand/dollar exchange rate;
The once-off Transnet net settlement of R4.3 billion, received in the prior year; and
Unrealised losses of R1.1 billion on the translation of monetary assets and liabilities, and valuation of financial instruments and derivative contracts compared to unrealised gains of R2 billion in the prior year

Read/ listen:
Sasol beats key FY26 operating targets
Sasol’s strong update underpins recovery

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“While earnings are expected to improve, higher year-end working capital driven by elevated pricing following the Middle East conflict and the previously reported fuels inventory build, is expected to moderate the improvement in free cash flow generation,” the company said.

Full-year results will be released on 1 September 2026.

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