JSE- and NYSE-listed energy and chemicals company Sasol has delivered what it calls ‘solid progress’ in the first quarter of its 2026 financial year (Q1 FY26).
According to information released by the group, as reported by Moneyweb, Sasol achieved improved operational performance across its key divisions, even as it continues to navigate ‘ongoing market volatility and emerging challenges.’
The company’s Business Performance Metrics update, which was published earlier today, outlined stronger production volumes in its Southern Africa operations, driven by better coal quality and plant reliability. At the same time, its International Chemicals division recorded increased revenue compared to the previous quarter.
Sasol’s Mining division recorded an impressive 18% rise in saleable production quarter-on-quarter in the country. This was largely due to the successful ramp-up of its destoning plant, which has enhanced coal quality.
That improvement has had a ripple effect: Secunda Operations (SO) reported a 4% production increase compared to the previous quarter and a 9% year-on-year improvement.
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The Natref refinery and Sasolburg operations also posted stronger output, supported by higher plant availability. Meanwhile, fuel sales volumes outperformed those of the same period in FY25, with continued growth seen in higher-margin mobility channel sales.
Although Chemicals Africa maintained stable sales volumes, its revenue slipped slightly due to ‘persistent market softness and lower prices.’
On the international front, however, Sasol’s chemicals business reported higher revenues quarter-on-quarter, a result of ‘self-help initiatives, higher US sales volumes, and stronger pricing in Eurasia.’
The company added that revenue and adjusted Ebitda were notably higher than in Q1 FY25, despite weaker US base chemical prices partially offsetting those gains.
Sasol confirmed on 22 October that Prax South Africa (PraxSA), its minority partner in the Natref refinery, had filed for business rescue. The group assured stakeholders that measures are in place to ensure Natref operations continue uninterrupted and that it will work closely with the appointed business rescue practitioners.
The company also highlighted progress in its low-carbon transition initiatives, noting that the commissioning of new boilers at Natref is underway. ‘The second boiler is expected to come online in Q1 FY26, with the third following in Q2 FY26,’ Sasol stated.
In addition, the planned closure of certain international chemical plants remains on schedule, aligning with the company’s broader strategy to optimise its global operations.
While safety remains a core focus, Sasol confirmed a fatal incident at its Thubelisha Colliery in September, a setback following its first-ever fatality-free financial year in FY25. An investigation is currently underway.
Despite this, Sasol reiterated that its overall operational and safety performance ‘remains within market guidance,’ showing resilience amid changing conditions.
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