South Africa · Delayed Price · Currency is ZAR · Price in ZAc Sasol Earnings Call Transcripts
Fiscal Year 2026
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Operational stability improved with positive free cash flow and lower net debt, despite macro headwinds. Renewables expansion, cost control, and targeted capital allocation support resilience, while impairments and chemical market weakness weigh on results.
Fiscal Year 2025
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Most FY2025 financial targets were met despite lower EBITDA, with free cash flow up 75% and net debt reduced to $3.7 billion. Strategic progress includes emission reduction, renewable energy, and cost savings, while macro volatility and operational challenges persist.
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The updated strategy targets operational reliability, cost efficiency, and decarbonization, with Southern Africa aiming for a $50/bbl break-even and international chemicals targeting 15%+ EBITDA margin by FY2028. Capital discipline, debt reduction, and renewables underpin growth, while new sustainable business streams are being developed.
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Adjusted EBITDA fell 15% year-over-year to ZAR 24 billion amid lower oil prices and chemicals downturn, but free cash flow improved 84% on cost and capex discipline. International Chemicals delivered strong margin gains, while capital allocation remains focused on debt reduction and transformation.
Fiscal Year 2024
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The AGM addressed board changes, safety, and financial performance, with all resolutions passed. Strategic focus remains on operational improvement, renewables, and a new dividend policy tied to free cash flow. Shareholders raised concerns on safety, decarbonization, and financial results.
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FY 2024 saw operational improvements and cost discipline, but profitability declined due to a ZAR 46 billion impairment in Chemicals America and weak chemical markets. The updated dividend policy ties payouts to free cash flow and net debt below $4 billion, with FY 2025 focused on safety, cash generation, and sustainability.