Energy and chemicals company Sasol has warned that its headline earnings per share (HEPS) are likely to decrease by between 26% and 36% year-on-year, to between R13 and R15, for the six months ended December 31 – the first half of its 2025 financial year.

This compares with HEPS of R20.37 reported for the six months ended December 31, 2023.

Earnings per share (EPS), meanwhile, are likely to be between 47% and 61% lower year-on-year, at between R6 and R8, compared with the prior half-year’s EPS of R15.19.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the six months ended December 31 are likely to have decreased by between 11% and 22% to between R22-billion and R25-billion, compared with the adjusted Ebitda of R28-billion reported for the prior comparable period.

In a statement issued on February 5, Sasol said the decrease in earnings in the period was primarily the result of a 13% decline in the average rand-per-barrel price of Brent crude oil and a significant decline in refining margins and fuel price differentials.

A 5% decrease in sales volumes, associated with lower production and/or lower market demand, was also cited as a key reason.

Sasol also pointed to notable non-cash adjustments before taxation, including a net loss of R6.2-billion from remeasurement items compared with a net loss of R5.8-billion in the prior half-year, mainly because the Secunda and Sasolburg liquid fuels refinery cash-generating units remain fully impaired.

The full amount of costs capitalised during the current period, totalling R5.6-billion, is impaired.

The company also noted unrealised losses of R100-million on the translation of monetary assets and liabilities and the valuation of financial instruments and derivative contracts, compared to unrealised gains of R2.7-billion in the prior half-year.

These negative financial impacts were partially offset by an increase in average chemicals basket prices, stringent cost management, and efficient capital expenditure.

Sasol will publish its interim results on February 24.