Sasol(US:SSL) Prnewswire·2026-02-05 13:14Core Viewpoint - Sasol Limited is expected to report a significant decline in financial performance for the six months ended December 31, 2025, with adjusted EBITDA projected between R19 billion and R23 billion, a decrease of 4% to 21% compared to the prior period [1] Financial Performance Summary - Adjusted EBITDA is anticipated to be between R19 billion and R23 billion, down from R24 billion in the prior period, reflecting a decrease of 4% to 21% [1] - Headline earnings per share (HEPS) is expected to range from R8.50 to R10.00, a decline of 29% to 40% from R14.13 in the previous period [1] - Earnings per share (EPS) is projected to be between R0.10 and R0.80, representing a drastic decrease of 89% to 99% from R7.22 in the prior period [1] Factors Influencing Earnings - The decrease in earnings is primarily attributed to impairments totaling R7.8 billion (before tax), compared to R5.7 billion in the prior period [1] - A 3% decrease in the average US dollar per ton chemicals basket price contributed to the earnings decline [1] - A 17% decline in the average Rand per barrel Brent crude oil price also impacted earnings negatively [1] - The decline in earnings was partially mitigated by disciplined cost management and a 3% increase in sales volumes due to improved operational performance [1] Impairment Details - Significant impairments include R3.9 billion related to the Production Sharing Agreement (PSA) development in Mozambique, influenced by a revision of the expected production profile and the strengthening of the Rand against the US Dollar [1] - The Secunda liquid fuels refinery cash generating unit remains fully impaired, with R3 billion in capitalized costs impaired during the current period [1] Cash Flow and Expenditure - Overall free cash flow generation is expected to improve compared to the prior period, despite lower earnings, due to reduced capital expenditure [1]