Petrochemicals company Sasol expects to meet the majority of its financial guidance for the 2025 financial year, as well as volume guidance across most business segments, but has flagged a possible impact on its Natref refinery after State Oil Limited, the parent company of Prax South Africa (PraxSA), was placed under administration in June.

PraxSA owns a minority stake in the Natref refinery, which Sasol says continues to operate to plan.

Sasol is continuing discussions with PraxSA to understand the implications of this development and ensure there is no impact on operational continuity at the refinery.

Meanwhile, Sasol notes that its earnings a share are likely to increase by more than 20% year-on-year on the loss a share of R69.94 reported in the prior financial year.

In a trading statement issued on July 22, Sasol says its Natref refinery business experienced unplanned disruptions which impacted on production for the last quarter of the year, ended June 30, and resulted in volumes being marginally below guidance; however, this was offset by higher liquid fuel sales and external gas sales, driven by increased customer demand.

Sasol also experienced higher prices in its Chemicals Africa business in the last quarter of the financial year.

In the International Chemicals business, Sasol recorded higher revenues in the last quarter of the year supported by higher sales volumes and improved US production, despite lower US pricing in particular. Pricing in the Eurasia segment improved through prioritised value realisation.

Despite a challenging environment, Sasol says its focus on self-help initiatives has built resilience and helped to mitigate the impacts of global volatility and geopolitical uncertainty. The group’s adjusted earnings are expected to be higher year-on-year, reflecting the benefits of higher average sales basket prices and proactive management actions.

Moreover, Sasol has increased its access to renewable energy in South Africa to 920 MW as of July 22, following a latest power purchase agreement (PPA) signed for 160 MW, which will start operating in the 2028 financial year.

The company has also secured a 93 MW PPA for renewable energy in the US, which will cover about 50% of the electricity consumed at Sasol’s Lake Charles facility during the 2027 financial year.

At Natref, Sasol commissioned the first of three new low-carbon boilers, which is a key milestone in the group’s emission reduction efforts and producing 30 000 litres of renewable diesel.

Sasol maintains strong liquidity and strict cost management to support its financial resilience. “We also continue to be proactive with our hedging programme, ensuring effective risk management and reduced impacts of market volatility,” the company states.

The group continues to engage with relevant stakeholders in the US to try and mitigate the new tariff rates that will take effect on August 1.

Once the company releases its full results for the 2025 financial year, it will provide an outlook for the 2026 financial year.