Sasol Ltd Reports Strong Financial Performance Amidst Challenging Environment

Sasol Ltd reported a 75% increase in free cash flow and a 93% rise in headline earnings per share for FY25, despite a challenging environment. However, turnover and adjusted EBITDA declined by 9% and 14%, respectively. The company's focus on cost management and strategic initiatives is expected to enhance its resilience.

Johannesburg, South Africa - Sasol Ltd (JSE: SOL; NYSE: SSL) has announced its financial results for the year ended 30 June 2025, demonstrating resilience and progress in a challenging macroeconomic environment. The company reported a 75% increase in free cash flow and a 93% rise in headline earnings per share (HEPS) for the fiscal year, despite a 9% decline in turnover and a 14% decrease in adjusted EBITDA [1].

Simon Baloyi, President and Chief Executive Officer of Sasol Ltd, highlighted the company's strategic initiatives and cost management efforts. "FY25 has been a pivotal year for Sasol as we mark our 75th anniversary and pursue our future with renewed purpose," said Baloyi. "Our strategic priorities, such as restoring the reliability and competitiveness of our Southern Africa value chain and driving margin improvement in International Chemicals, are beginning to show positive results."

Key highlights of the financial performance include:

- Free Cash Flow: Free cash flow after tax, interest, and capital expenditure increased by 75% to R12.6 billion, supported by the receipt of the Transnet legal settlement payment.
- Cost Management: Cash fixed costs increased below inflation through cost-saving initiatives, and capital expenditure was 16% lower than the prior year.
- Balance Sheet Strengthening: Net debt (excluding leases) reduced by 11% to US$3.7 billion, and the company maintained a strong liquidity position of more than US$4 billion.
- Earnings: 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, while headline earnings per share (HEPS) improved by 93% to R35.13 per share.

Sasol Ltd's focus on strategic initiatives and cost management is expected to enhance its resilience and support future growth. The company's long-term ambition remains unchanged: to build a stronger, more sustainable Sasol that creates value for its stakeholders.

References:
[1] https://www.marketscreener.com/news/sasol-progresses-on-cmd-commitments-with-improved-fy25-financial-delivery-ce7c50dbde81f622
[2] https://finance.yahoo.com/news/sasol-limited-audited-financial-results-101500990.html