Sasol Limited Announces Trading Statement for H1 2025
In accordance with regulatory requirements, Sasol Limited has released its trading statement detailing the financial performance for the six months ended December 31, 2025. This report is crucial as it informs stakeholders about expected earnings variations compared to the same period from the previous year.
Financial Performance Overview
For this reporting period, Sasol anticipates significant fluctuations in key financial metrics:
Projected Earnings and EBITDA
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) is projected to fall between R22 billion and R25 billion. This compares unfavorably to an adjusted EBITDA of R28 billion from the previous half-year, indicating a potential decrease of 11% to 22%.
Earnings Per Share Expectations
Earnings per share (EPS) are expected to range from R6.00 to R8.00, significantly below the previous half-year EPS of R15.19, reflecting a drop of 47% to 61%. Additionally, the headline earnings per share (HEPS) is predicted to be between R13.00 and R15.00, down from R20.37 in the earlier period, showcasing a decrease of 26% to 36%.
Factors Contributing to Financial Changes
The decline in earnings can be attributed to several factors:
Influence of Market Dynamics
A key reason is the 13% drop in the average Rand per barrel of Brent crude oil prices, compounded by significantly reduced refining margins and altered fuel price differentials. Furthermore, there has been a 5% decline in sales volumes, resulting from lower production outputs and decreased market demand.
Impact of Non-Cash Adjustments
Notable non-cash adjustments, including a net loss of R6.2 billion from remeasurement items and unrealised losses on financial instruments, have also contributed to this overall decline. Comparatively, these figures indicate challenges from the prior half-year reports.
Looking Ahead: Sasol's Commitment
Despite the unfavorable conditions, Sasol remains committed to improving its operations and financial health. The company intends to provide more detailed insights into their recovery plans during the presentation of its 2025 interim financial results, scheduled for February 24, 2025, at 09h00 SA time.
Engagement with Investors
Following the presentation, there will be a market call led by President and CEO Simon Baloyi and CFO Walt Bruns, allowing for a robust discussion regarding the results and future strategies.
About Sasol Limited
Sasol Limited is a prominent energy and chemical company, dedicated to fulfilling the energy needs of the market while maintaining sustainability initiatives. They focus on innovative solutions and strive to improve the efficiencies of their operational strategies.
Frequently Asked Questions
What is the expected range for Sasol's adjusted EBITDA for H1 2025?
Sasol expects the adjusted EBITDA to be between R22 billion and R25 billion.
How much is the projected decrease in EPS compared to the last half-year period?
The projected decrease in EPS ranges from 47% to 61% compared to the previous half-year.
What factors contributed to the decline in Sasol's earnings?
The decline is primarily due to lower Brent crude oil prices, decreased sales volumes, and significant non-cash adjustments.
When will Sasol present its interim financial results?
Sasol is set to present its interim financial results on February 24, 2025, at 09h00 SA time.
Who will lead the market call following the financial results presentation?
The market call will be led by President and CEO Simon Baloyi and CFO Walt Bruns.
