Sasol, the world’s biggest producer of fuels and chemicals from coal, has turned a corner in 2025. After years of losses, the company announced a remarkable profit of R6.8 billion (around £290 million), a huge turnaround from the previous year’s R44.3 billion loss. This impressive recovery has caused its shares to jump approximately 39% so far this year, marking a dramatic comeback in the stock market.
Despite rising costs for carbon credits, Sasol managed to boost its output and curb expenses, leading to this positive result. The company’s main operations are based in Johannesburg, South Africa, and it is known to be one of the largest emitters of greenhouse gases in the country. To address environmental concerns, Sasol plans to increase renewable energy use and cut emissions by 30% by 2030.
Since taking charge last year, CEO Simon Baloyi has introduced new strategies. These include focusing more on coal for production while reducing its reliance on gas. The company is also investing heavily in renewable energy, aiming to source 2 gigawatts by the end of the decade. These efforts are part of a broader plan to balance profitability with environmental responsibility.
Sasol’s recent financial statements reveal that the company purchased a quarter more carbon credits in 2025, spending R723 million, nearly three times more than in 2023. This indicates a strong commitment to offsetting pollution despite the increased costs. The firm also completed a new plant designed to improve coal quality, which should enhance fuel production.
Looking ahead, Sasol is considering a potential listing of its international chemicals division, which could happen by the end of the decade. The company is actively reviewing its assets to improve profitability and strengthen its financial position.
In summary, Sasol’s return to profitability, combined with strategic shifts towards renewable energy and cost management, has positioned it as one of the most notable market winners this year. Investors are watching closely as the company continues to navigate a complex and volatile energy landscape.