Sasol Share Price JSE: SOL on A Bullish Path Now, as FY25 Earnings Soar
Sasol shares surged over 11% on Monday as the company posted sharply improved results, signaling progress on its turnaround strategy...
Quick overview
- Sasol shares rose over 11% following a significant improvement in financial results, indicating progress in its turnaround strategy.
- Headline earnings per share increased by 93% year-on-year, driven by reduced impairments and stronger cash flow.
- Despite the positive results, Sasol opted not to declare a dividend to maintain its debt below the $3 billion threshold.
- Management acknowledged ongoing operational challenges, particularly in the fuels and gas segments, as the recovery continues.
Sasol shares surged over 11% on Monday as the company posted sharply improved results, signaling progress on its turnaround strategy despite ongoing operational headwinds.
Share Price Momentum
Sasol’s stock closed at R121.57, up 11.68% on the JSE, marking a 44% rally in just two weeks since bouncing off the 200-SMA on its daily chart. This is a strong sign of trend reversal after the long term decline, as resistance indicators turn into support.
SOLJ Chart Daily – The 200 SMA Has Turned Into Support
On the weekly chart, both the 20-SMA and 50-SMA were acting as resistance indicators for a few years, but have been broken, confirming a bullish trend reversal.
SOLJ Chart Weekly – Buyers Will Likely Break the 100 SMA Too
Earnings Recovery and Key Drivers
Headline earnings per share soared 93% year-on-year, while basic earnings returned to positive territory. The turnaround was fueled by fewer impairments, stronger free cash flow, and debt reduction efforts. A one-off R4.3 billion settlement with Transnet also provided a significant boost.
Operational and Strategic Progress
While turnover and EBITDA declined, Sasol delivered a sharp improvement in profitability. Management credited progress against Capital Markets Day 2025 commitments, including stronger cash generation and structural improvements.
Free cash flow after taxes, interest, and capex rose 75% to R12.6 billion. The destoning factory in South Africa is on track to be fully operational by year-end, aimed at restoring Secunda Operations volumes and improving coal quality.
Dividend Withheld Again
Despite the rebound, Sasol chose not to declare a dividend, citing its commitment to keep debt below its $3 billion policy threshold. Management emphasized that distributions would remain constrained until balance sheet strength is secured.
Sasol Limited: FY2025 Audited Financial Results
Key Metrics (Year Ended 30 June 2025)
- Turnover: R249,096m (↓9% YoY)
- Adjusted EBITDA: R51,764m (↓14%)
- EBIT: R18,819m (vs. LBIT of R27,305m in FY2024)
- Basic EPS: R10.60 (vs. -R69.94 in FY2024)
- HEPS: R35.13 (↑93% YoY)
- Capital Expenditure: R25,413m (↓16%)
- Free Cash Flow: R12,558m (↑75%)
- Net Debt (excl. leases): R64,964m (↓13%)
- Dividend: No interim or final dividend declared (vs. R2.00 interim in FY2024)
Net Asset Value
- Total Assets: R359,555m (↓1%)
- Total Liabilities: R201,944m (↓7%)
- Total Equity: R157,611m (↑7%)
Segment Performance – Turnover (R million)
- Southern Africa Energy & Chemicals: R30,373m (↑5%)
- Mining: R3,954m (↑23%)
- Gas: R3,048m (↓55%)
- Fuels: R98,419m (↓17%)
- Chemicals Africa: R63,528m (↓5%)
- International Chemicals – America: R38,703m (↓7%)
- International Chemicals – Eurasia: R42,571m (↑1%)
- Business Support: R– (flat)
- Group External Turnover: R249,096m (↓9%)
Segment EBIT (R million)
- Mining: R13,133m (↑8%)
- Gas: R3,048m (↓55%)
- Fuels: R5,222m (↓72%)
- Chemicals Africa: R5,009m (↓20%)
- International Chemicals – America: R1,666m (vs. -R61,209m in FY2024)
- International Chemicals – Eurasia: -R1,211m (vs. -R2,388m in FY2024)
- Business Support: R1,131m (flat)
- Group EBIT: R18,819m (vs. -R27,305m in FY2024)
Leadership Commentary
CEO Simon Baloyi and CFO Walt Bruns highlighted that the results demonstrate “clear progress” on strategy despite global volatility and energy market challenges.
Conclusion: Sasol’s FY2025 results mark a significant turnaround, with profitability, free cash flow, and technical momentum all moving in the right direction. Yet, the lack of dividends and lingering operational challenges in fuels and gas suggest the recovery journey is still in progress.
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