Sasol Boosts Production and Sales Amid Rising Demand and Global Tensions

Sasol has revised its full-year fuel sales volumes upward to 10%-15% higher than the 2025 financial year, up from a previous forecast of 5%-10%, citing higher Natref volumes and increased demand amid ongoing Middle East tensions.

The update, released on April 23, 2026, follows strong performance in the nine months to end-March, during which Sasol maintained uninterrupted production of energy and chemical products despite supply chain disruptions linked to the conflict.

The group said We see leveraging its integrated value chain to ensure consistent supply while maintaining discipline on cost and capital spend, with working capital increasing since the start of the Middle East conflict and prudent management remaining a key focus area.

Sasol’s capital expenditure has been revised downwards to R20bn-R22bn from R22bn-R24bn previously, supported by ongoing capital optimisation and the deferral of non-critical shutdowns.

Gas production volumes are expected to be 5% to 10% below the 2025 financial year’s levels due to flooding in Mozambique and well availability constraints at the Petroleum Production Agreement (PPA) asset.

The conflict has highlighted Sasol’s role in the domestic supply of energy and chemical products, with the group reinforcing its supply capabilities after the closure of the Strait of Hormuz disrupted traditional import routes.

In the Southern Africa business, the destoning plant continued to deliver improved coal quality, with average sinks in line with expectations and higher coal production reducing external coal purchases.

Sasol’s share price was 0.13% higher at R217.60 following the business performance update, but remains 73.4% above the level on February 26, 2026 — just before the Middle East crisis escalated — and 233.8% higher than a year ago.

An online search indicated that for every R1 per litre increase in South African fuel prices — driven by higher Brent crude oil prices and rand depreciation — there is a material uplift in Sasol’s earnings before interest, tax, depreciation, and amortisation (EBITDA) and cash flow, as its integrated operations offset higher input costs from supply disruptions.

The group’s strategy has been reset to focus on sustaining uninterrupted operations and leveraging its integrated value chain to ensure consistent product supply to customers while maintaining financial discipline.