Sasol Limited Q4 FY2025 earnings call

Safety: No major process safety incidents in FY '25, with Sasol Mining achieving its first fatality-free financial year. Financial Performance: Adjusted EBITDA down 14% to ZAR 52 billion, but free cash flow improved by over 70%. Strategic Initiatives: Destoning plant construction complete, on track for beneficial operation in H1 FY '26; renewable energy initiatives with over 900 MW secured in SA; leadership changes in executive team. Social Value: Invested ZAR 600 million in social programs, supported 250 students with bursaries.

South African Value Chain: Adjusted EBITDA for the period was down 14% to ZAR 52 billion. Focused on feedstock quality and availability, with the destoning plant construction complete and start-up activities ongoing. International Chemicals: Adjusted EBITDA increased by more than $120 million despite the prolonged downturn in the chemical market, with adjusted EBITDA margin improving from 6% to 9%.

FY '26 Priorities: Focus on safety, delivering innovative solutions to customers, resetting international chemicals and restoring SA value chain, improving cash generation for deleveraging. Financial Targets: FY '26 adjusted EBITDA for International Chemicals expected between $450 million to $550 million with margin 10%-13%; South African value chain aiming for breakeven target of $60 to $55 per barrel.

Macroeconomic Volatility: Continued uncertainty in tariffs, interest rates, geopolitical risks. Operational Delays: CTT in Mozambique delayed due to construction issues and engineering contractor challenges. Asset Impairments: Secunda and Sasolburg liquid fuel refinery CGUs fully impaired, recoverable amount impacted by lower macroeconomic price assumptions.

Q: On CapEx, where did savings come from and how to reconcile with '26 guidance?

A: CapEx savings from risk-based approach, deferring low-risk activities, delaying PT5-C. '26 CapEx guided similar to '25 as low-risk items deferred.

Q: How sustainable is capital spend and comparison to CMD commitments?

A: Capital spend is disciplined, focus on deleveraging, with free cash flow improvement. Historical impairments affect tax, but focus on deleveraging to meet CMD targets.

Q: On Mozambique gas and CTT delays?

A: PSA project ready for commissioning, CTT delayed due to storms and engineering contractor issues; aim to operate IPF and find commercial means for gas flow.

Q: Outlook for chemical basket prices?

A: Chemical basket prices showed mixed trends, with focus on value over volume and resilient products despite market volatility.