Financial Data and Key Metrics Changes - The overall financial performance showed a decline in Adjusted EBITDA year-on-year due to weaker macro conditions, although free cash flow ended positively for the first time in four years, reflecting a more than 100% improvement from the prior period [9][23]. - Net debt ended at $3.8 billion, slightly above the full-year target, but the company remains on track to achieve net debt below $3.7 billion by year-end [7][22]. - Gross margin declined by 6%, impacted by a 17% lower Rand oil price and continued pressure in chemicals pricing, partially offset by stronger refining margins and higher sales volumes [23]. Business Line Data and Key Metrics Changes - In the mining segment, EBITDA was lower due to the phase-out of export coal sales, but additional income was realized from leasing coal terminal capacity [26]. - Fuels EBITDA increased, supported by higher refining margins and improved operational performance at Secunda and Natref [27]. - Chemicals EBITDA generation remains under pressure across Africa and America due to lower prices and weaker margins, while Eurasia saw margin improvement [27]. Market Data and Key Metrics Changes - The Brent crude oil price decreased by 14% year-on-year, contributing to a 17% decline in the Rand oil price [16]. - The oil market remains in surplus, with supply growth outpacing demand, leading to expectations of continued price volatility [17]. - Chemicals markets are facing global overcapacity and softer demand, which are weighing on pricing and margins [18]. Company Strategy and Development Direction - The company is focused on a two-pillar strategy: strengthening the foundation business and positioning for long-term growth and transformation [2][3]. - Progress has been made in renewable energy, with over 1.2 gigawatts secured in South Africa, moving towards a target of 2 gigawatts by 2030 [30][31]. - The company is also pursuing carbon offset initiatives and sustainable fuels, aiming to create additional pathways for growth and value creation [34]. Management's Comments on Operating Environment and Future Outlook - The management acknowledged the volatile business environment and emphasized the importance of safety and operational delivery [4][5]. - There is cautious optimism for recovery in selective end markets, although the pace of decline in chemicals is slowing [18]. - The management remains committed to improving cash generation, disciplined capital allocation, and proactive risk management [28]. Other Important Information - The company invested approximately ZAR 200 million in social programs over the past six months, reflecting its commitment to positive social impact [14]. - The company has secured a EUR 350 million grant for a sustainable aviation fuel project in Germany, supporting its long-term growth strategy [34]. Q&A Session Questions and Answers Question: Synfuels volumes and guidance for the next financial year - Management noted that the annualized run rate in the second quarter was about 7.6 million tons, and while maintenance is scheduled, they are optimistic about achieving top-end guidance sooner than expected [41][43]. Question: Carbon tax suspension proposal - Management emphasized the importance of a carbon tax for protecting local industries and proposed a carbon tax recycling mechanism to support the transition to lower emissions [45]. Question: CapEx and de-gearing guidance - Management confirmed the guidance to reduce net debt below $3.7 billion by year-end, despite challenges in the macro environment, and noted that the increase in CapEx is due to specific projects progressing [56][61].