Sasol has reported that its Secunda Operations in Mpumalanga achieved their highest annual production in five years for the financial year to 30 June 2026, with the group’s production and sales metrics coming in within or above market guidance across the board. The petrochemicals giant attributed the improvement chiefly to a coal destoning project completed earlier in the year, alongside stronger natural gas availability and stable operations through the fourth quarter.
The destoning initiative centred on a R700 million repurposing of the Twistdraai export coal plant, which now feeds Secunda with coal carrying a sinks content of between 12% and 14%, well below the impurity levels that previously damaged the facility’s gasifiers and depressed yields.
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Those gasifiers convert coal into the synthetic gas feedstock that underpins Sasol’s Fischer-Tropsch fuel and chemicals production. The payoff follows a difficult prior year, in which Secunda produced 6.7 million tons against a target range of 6.8 million to 7 million tons. For the year just ended, Sasol was targeting between 7 million and 7.2 million tons, with an ambition to sustain roughly 7 million tons annually through to 2030.
Beyond Secunda, the group’s International Chemicals division is expected to exceed its adjusted EBITDA guidance range of $375 million to $450 million, helped by firmer pricing in the Americas and higher Eurasian revenue, even as supply was disrupted by force majeure on certain products linked to the conflict in the Middle East. Liquid fuels sales volumes rose year on year, supported by stronger refining margins, though quarterly figures were dented by fuel price volatility and higher import volumes.
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| Metric | Detail |
|---|---|
| Secunda production | Highest in 5 years, above guidance |
| Coal sinks content | Reduced to 12–14% |
| Destoning plant cost | R700 million |
| FY26 Secunda target | 7.0–7.2 million tons |
| International Chemicals EBITDA guidance | $375m–$450m (expected to exceed) |
| Renewable capacity added in Q4 | 330 MW |
| Total operational renewable capacity | Over 500 MW of 1.2GW secured |
| Full FY26 results and FY27 outlook | 1 September 2026 |
Sasol also pointed to progress on its energy transition programme, bringing 330 megawatts of renewable capacity online during the quarter and lifting total operational renewable capacity to more than 500 megawatts of the over 1.2 gigawatts it has secured. The group said this supports its emissions targets while improving the cost competitiveness of its Southern African operations. On the regulatory front, Sasol confirmed it had submitted a maximum gas price application to the National Energy Regulator of South Africa, as it continues to navigate the anticipated depletion of Mozambican gas supplies, a domestic shortfall already flagged for 2028 and widely referred to in the industry as the looming gas cliff.
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The operational recovery comes after a torrid stretch for the group, whose net income collapsed some 95% in the 2025 financial year, though free cash flow turned positive in the same period for the first time in four years. Sasol shares have since rallied sharply, roughly doubling in value over the past year on the back of firmer oil prices and an improving operational narrative, with JPMorgan among the analysts upgrading their rating from underweight to overweight and lifting price targets accordingly.
Despite Tuesday’s upbeat production update, the stock slipped slightly on the day, suggesting investors had largely priced in the improvement or remain wary of volatility tied to the Middle East and the rand. Sasol is set to release full financial results for the year, along with its outlook for 2027, on 1 September 2026, when the durability of the Secunda turnaround will face its next real test.