Africa-Press – Mozambique. Sasol’s R7.8 billion ($483 million) writedown in parts of its South African and Mozambican businesses, together with a decline in oil and chemical prices, triggered a drop of as much as 99% in half-year profit.
The South African fuel and chemicals maker expects earnings per share in a range between R0.10 and R0.80 for the six months ended December 31, compared with R7.22 a year earlier, it said in a statement Thursday.
The Johannesburg-based company is booking a R3 billion impairment on its Secunda liquid-fuels refinery in South Africa, which remains fully impaired. It’s also writing down R3.9 billion on its production-sharing agreement it Mozambique after a revision on production timelines delayed monetisation.
Sasol noted that while total gas volumes remain unchanged, a revision of the expected production profile has resulted in a deferral of gas monetisation. The strengthening of the South African Rand against the US Dollar also contributed to the Mozambique impairment.
Sasol is the biggest producer of liquid fuels from coal. A 17% decline in the price of Brent crude in rand terms, together with a 3% drop in the average chemicals basket price in dollar terms, contributed to the decline in profit.
Sasol uses coal to make most of its products and is the second-biggest polluter in South Africa. Its plans to lower emissions include substituting the dirtiest fossil fuel with natural gas, adding renewable energy and potentially green hydrogen.
Adjusted earnings before interest, tax, depreciation and amortisation will decline by a range of 4% to 21% to between R19 billion and R23 billion.
President and CEO Simon Baloyi is expected to address these challenges in detail when Sasol presents its full interim financial results on 23 February 2026.
Source: Bloomberg
