Sasol Ltd (SSL, Financial) has released a trading statement for the six months ended December 31, 2025, indicating a substantial decline in financial performance compared to the previous year. The company expects adjusted EBITDA to fall between R22 billion and R25 billion, a decrease from R28 billion in the prior period. Earnings per share (EPS) and headline earnings per share (HEPS) are also projected to drop significantly. The announcement was made on February 5, 2025, in Johannesburg.
Positive Aspects
- Increase in average chemicals basket prices.
- Stringent cost management and efficient capital expenditure partially offset negative impacts.
Negative Aspects
- Adjusted EBITDA expected to decrease by 11% to 22%.
- EPS projected to decline by 47% to 61%.
- HEPS anticipated to fall by 26% to 36%.
- 13% decline in the average Rand per barrel of Brent Crude Oil price.
- 5% decrease in sales volumes due to lower production and market demand.
- Net loss of R6.2 billion from remeasurement items.
- Unrealised losses of R0.1 billion on financial instruments and derivative contracts.
Financial Analyst Perspective
The trading statement from Sasol Ltd (SSL, Financial) highlights significant challenges faced by the company in the first half of 2025. The decline in oil prices and reduced market demand have severely impacted earnings, with adjusted EBITDA and EPS showing notable decreases. The company's focus on cost management and capital efficiency is a positive step, but the financial outlook remains challenging. Investors should closely monitor the upcoming interim financial results presentation for further insights into Sasol's strategic response to these headwinds.
Market Research Analyst Perspective
From a market research standpoint, Sasol Ltd (SSL, Financial) is navigating a difficult economic environment characterized by fluctuating oil prices and reduced demand for its products. The company's ability to manage costs and optimize capital expenditure is crucial in maintaining competitiveness. However, the significant drop in earnings underscores the need for strategic adjustments to adapt to market conditions. The upcoming market call with Sasol's leadership will be pivotal in understanding the company's future direction and potential recovery strategies.
Frequently Asked Questions
Q: What is the expected range for Sasol's adjusted EBITDA for H1 2025?
A: Sasol expects adjusted EBITDA to be between R22 billion and R25 billion.
Q: How much is the projected decline in Sasol's EPS?
A: EPS is expected to decrease by 47% to 61%, ranging between R6.00 and R8.00.
Q: What factors contributed to the decline in Sasol's earnings?
A: The decline is primarily due to lower oil prices, reduced sales volumes, and non-cash adjustments including remeasurement losses and unrealised financial losses.
Q: When will Sasol present its interim financial results?
A: Sasol will present its 2025 interim financial results on February 24, 2025, at 09h00 (SA time).
Read the original press release here.
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