Half Year 2026 Sasol Ltd Earnings Call Transcript
Key Points
- Sasol Ltd (SSL) achieved a Southern Africa value chain cash breakeven price of USD53 per barrel, ahead of the full-year target range of USD60 to USD55 per barrel.
- The destoning plant reached beneficial operation in December, improving coal quality and supporting more stable operations at Secunda.
- Sasol Ltd (SSL) secured an additional 300 megawatts of renewable energy, bringing the total to more than 1.2 gigawatts on the path to 2 gigawatts by 2030.
- Adjusted EBITDA for International Chemicals improved year-on-year despite challenging markets, supported by early benefits from self-help measures.
- Sasol Ltd (SSL) generated positive free cash flow despite challenging macroeconomic conditions, demonstrating effective execution on cash flow levers.
- A tragic fatality in September highlighted ongoing safety challenges, with gaps identified in risk awareness and adherence to safety rules.
- The macroeconomic environment remains challenging, with a 14% year-on-year decline in Brent crude oil prices and a stronger rand impacting earnings.
- Softer chemical pricing and a stronger rand outlook led to a revision of full-year adjusted EBITDA and margin guidance for International Chemicals.
- Net debt ended at USD3.8 billion, slightly above the full-year target, with ongoing focus required on cash generation and deleveraging.
- Start-up delays at the CTT gas-to-power project in Mozambique affected the timing of PSA volumes, resulting in a PSA impairment.
Good morning, and welcome to Sasol's interim results presentation for financial year 2026. My name is Tiffany Sydow from Investor Relations. And on behalf of the Sasol executive management team, we are pleased that you could join us today.
With me is Simon Baloyi, our President and CEO of Sasol; and Walt Bruns, the Chief Financial Officer. The group executive management team is also present and will join for the market call, which follows directly after the presentations. A reminder that the presentation and all supporting financial materials are available on our website.
Turning to the agenda for today. A reminder that our strategy follows a two-pillar approach. Firstly, to strengthen our foundation business, where Simon will begin today's presentation with our business overview, then followed by Walt, who will take us through the financial performance for the half year. The second pillar addresses our pathway to grow and transform the business in the long term, where Simon will conclude and provide an update on our
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