SASOL LIMITED: AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2025
JOHANNESBURG, Aug. 25, 2025 /PRNewswire/ -- Simon Baloyi, President and Chief Executive Officer, said: "This year's results reflect the decisive actions we are taking to reshape Sasol for the future. We contained cash fixed cost increases below inflation, optimised capital spend, generated higher free cash flow and strengthened our balance sheet. We are advancing our strategic initiatives to restore the Southern Africa value chain, reset International Chemicals, and deliver our growth and transform ambitions. However, the global environment remains complex and volatile."
Sasol is making encouraging progress on our key priorities communicated at Capital Markets Day 2025 despite a challenging macro and operating environment with free cash flow after tax, interest and capital expenditure increasing by 75% to R12,6 billion. Earnings (pre-tax) were supported by non-recurring items, including the Transnet net cash settlement of R4,3 billion and the reduction in the environmental rehabilitation provision of R2,9 billion, offset by lower unrealised gains of R2 billion from the translation of monetary assets and liabilities and revaluation of derivatives (compared to R4,7 billion the prior year). This improvement was further supported by management actions in line with our goal to deliver sustainable long-term value to our stakeholders.
A 15% decline in the Rand oil price, significant reductions in refining margins and fuel price differentials, along with 3% lower sales volumes resulted in a 9% decrease in Turnover to R249 billion. Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) was R51,8 billion, a decline of 14%.
Through disciplined cost and capital management, cash fixed cost increases were kept below inflation, while capital expenditure of R25,4 billion was 16% lower than the prior year.
Total impairments of R20,7 billion were significantly lower than the R74,9 billion in the prior year, with R13 billion related to the Secunda and Sasolburg liquid fuel refinery cash generating units (CGU), which remain fully impaired. The recoverable amount improved through management actions but was negatively impacted by lower forecast macroeconomic price assumptions. Additional management initiatives need to be progressed before their benefits can be incorporated in the impairment calculations.
Additional impairments were recorded on Mozambique and Italy Care Chemicals CGUs, offset by the reversal of impairment for the China Care Chemicals CGU.
Basic earnings per share (EPS) increased by more than 100% to R10,60 per share compared to a loss per share of R69,94 in the prior year. Headline earnings per share (HEPS) improved by 93% to R35,13 per share.
The balance sheet was strengthened due to strong free cash flow generation supported by the impact of non-recurring items such as the Transnet settlement. Our net debt (excluding leases) declined 13% to R65,0 billion (US$3,7 billion) while total long-term debt reduced by 12% to R103,3 billion (US$5,8 billion).
Liquidity was further enhanced through the successful closure of a R5,3 billion ZAR floating rate bond in July 2025. This issuance supports our strategy to better align the currencies of our regional liabilities and cash flow and at a lower cost relative to other capital market options. Proactive hedging further helps to manage risk in a volatile macroeconomic environment.
Key metrics
2025
2024
Change %
Turnover
249 096
275 111
(9)
Adjusted EBITDA (R million)
51 764
60 012
(14)
EBIT/(LBIT) (R million)
18 819
(27 305)
> 100
Basic earnings/(loss) per share (Rand)
10,60
(69,94)
> 100
Headline earnings per share (Rand)
35,13
18,19
93
Capital expenditure (R million)
25 413
30 159
16
Free cash flow[1] (R million)
12 558
7 173
75
Net debt (excluding leases) (R million)
64 964
