Sasol released its financial results for the first half of fiscal year 2026, reporting revenue of R122.4 billion amid challenging commodity market conditions. Despite a 3% increase in sales volumes, turnover remained flat as lower crude oil and chemicals prices pressured earnings across the portfolio. Adjusted EBITDA declined 12% to R21.0 billion, while earnings before interest and tax fell 52% to R4.6 billion, reflecting the impact of depressed commodity valuations on operational profitability.
The company achieved a significant operational milestone by generating positive free cash flow of R0.8 billion during the period, marking the first positive result in four years. This turnaround was driven by rigorous cost discipline and reduced capital expenditure, demonstrating improved working capital management despite the unfavorable price environment. However, net debt increased to R63.3 billion (US$3.8 billion), surpassing the company's dividend trigger threshold and constraining capital distribution capacity.
Looking ahead, Sasol has downwardly revised its guidance for the International Chemicals division and cautioned that operating conditions are expected to remain challenging in the near term. The company maintains its focus on operational efficiency and cash generation as key priorities amid ongoing macroeconomic headwinds and volatile commodity markets.