Sasol Reports 95% Basic EPS Drop, Suspends Dividend, Lowers Chemicals Outlook for H1 FY26
SSL has more than doubled off its 52-week low of $2.78.
Summary
Sasol Limited announced its half-year financial results for FY26, revealing a significant decline in earnings per share and the suspension of its interim dividend, alongside a revised lower outlook for International Chemicals.
Key Events · Earnings and Guidance · SSL
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Significant Earnings Decline Confirmed
Basic earnings per share decreased by 95% to R0.38, and headline earnings per share fell 34% to R9.27 for the six months ended December 31, 2025, finalizing the preliminary expectations from the 2026-02-05 filing.
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Interim Dividend Suspended
No interim dividend was declared as net debt (US$3.8 billion) exceeded the company's policy trigger of US$3 billion, indicating a focus on deleveraging.
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Revised Business Outlook
Capital expenditure guidance was lowered by R2 billion to R22-R24 billion, and International Chemicals Adjusted EBITDA guidance was revised lower to US$375-US$450 million (from US$450-US$550 million), reflecting weaker market conditions.
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Positive Free Cash Flow Achieved
The company generated R0.8 billion in free cash flow, marking the first positive free cash flow in four years, supported by lower capital expenditure and improved sales volumes.
Analysis · SSL · Energy & Transportation
This filing confirms the substantial earnings decline previously anticipated in the 2026-02-05 6-K, with basic EPS down 95% and headline EPS down 34%. The decision to suspend the interim dividend due to net debt exceeding the policy trigger is a significant negative for income-focused investors. While the company achieved positive free cash flow for the first time in four years and reduced capital expenditure guidance, the lowered outlook for International Chemicals Adjusted EBITDA indicates ongoing challenges in a key segment. Investors should monitor the company's ability to achieve its full-year net debt target and the performance of its chemicals division amidst a challenging macroeconomic environment.
At the time of this filing, SSL was trading at $8.67 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $2.78 to $8.97. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.