Sasol raised its full-year fuel sales volumes guidance on Thursday, but lowered its gas production forecast after stronger-than-expected performances at its Secunda operations and Natref refinery were offset by weaker gas supply from Mozambique and ongoing pressure in its chemicals business. In a business performance update for the six months to end-December, the energy and chemicals group said fuel sales volumes for the full-year are now expected to increase 5%-10% from the 2025 financial year, up from the previous guidance of 0%-3%. Gas production, however, is now expected to be slightly lower than last year, by up to 5%, revised down from earlier guidance that had forecast growth of up to 10%.
The Natref refinery, which converts crude oil into fuels such as petrol and diesel, delivered improved production during the quarter, supported in part by additional capacity made available through Sasol’s shareholding in local oil company Prax South Africa. Combined with improved output at its Secunda operations — which converts coal into liquid fuels — this allowed Sasol to lift overall fuel sales volumes and maintain supplies to higher-margin markets. Operational reliability at Secunda was further supported by progress in the South African mining business.
The company said the destoning plant reached beneficial operation in December, improving coal quality. Additionally, all previously closed low-quality mining sections are now fully operational, while improved gasifier and equipment availability contributed to higher production. Gas production remains constrained.
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Lower supply from Mozambique, combined with delays to gas projects, prompted Sasol to reduce its full-year gas production guidance. Sasol said revenue in its chemicals business came under pressure from weaker global markets. In its South African chemical division operational improvements supported higher sales volumes.
Its chemical operations outside South Africa faced lower prices and volumes, including an extended outage at the Louisiana Integrated Polyethylene joint venture plant, which converts ethane, a natural gas liquid, into ethylene for plastics. The plant was restarted in December. The company said it continues to hedge oil and currency exposure to manage market volatility.
Looking ahead, Sasol said the operating environment is expected to remain challenging due to heightened geopolitical tension, evolving global trade dynamics and continued softness in certain end markets. Sasol’s share price jumped the most in three months after the update and by 3.18pm had gained more than 10% to R110.54.
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