Information
JOHANNESBURG, Feb. 23, 2026 /PRNewswire/ -- Sasol has released its operating and financial results for the six months ended 31 December 2025 (H1 FY26). Highlights:Turnover of R122,4 billion remained flat compared to
Original sourceAI Summary
Sasol's recent financial results for H1 FY26 show flat turnover and a 12% decline in EBITDA. Despite higher production volumes and a significant improvement in free cash flow, impairments weighed heavily on overall profitability, preventing an interim dividend declaration.
Sentiment Rationale
Mixed results may lead to cautious sentiment but improved cash flow offers some upside potential, akin to previous earnings cycles where initial volatility stabilized over time.
Trading Thesis
Expect volatility in SSL stock in the short term due to mixed financial performance.
Market-Moving
- Flat turnover suggests resilience but points to potential macroeconomic pressure.
- Significant free cash flow improvement indicates effective cost management.
- Impairments may dampen investor sentiment and affect stock price.
- No interim dividend issued highlights ongoing financial caution.
Key Facts
- Sasol's turnover flat at R122.4 billion; sales volumes rose 3%.
- Adjusted EBITDA declined by 12% to R21 billion, impacted by lower crude prices.
- EBIT decreased 52% to R4.6 billion, influenced by impairments totaling R7.8 billion.
- Free cash flow improved to R0.8 billion, a significant turnaround.
- No interim dividend declared due to net debt exceeding US$3 billion threshold.
Companies Mentioned
- KPMG (#): Sasol's external auditors reviewed financial statements.
Corporate Developments
The report fits into Corporate Developments, illustrating Sasol's strategic focus on cost management and operational efficiency amidst challenging market conditions.