Sasol is assessing the potential effects of the Trump administration’s import tariffs on its operations, supply chain and pricing strategies.
The US government announced changes to US import tariffs on April 3 followed by a suspension of the tariffs for most countries for 90 days, announced on April 9.
As global markets continue to adjust to the changes, Sasol says it is engaging with stakeholders and it remains focused on ensuring continuity, mitigating potential disruptions and identifying upside opportunities for the group.
“We continue to maintain strong liquidity and strict cost management, which supports our ability to navigate external uncertainties,” the group said on Thursday.
Releasing its production and sales metrics for the nine months ended March, the group said its margins continued to face pressure due to global macroeconomic factors and geopolitical uncertainties.
In the Southern Africa energy and chemicals business, coal quality continues to affect Secunda Operations. The destoning project to improve the quality of coal was progressing well and remained on track for completion in the first half of the 2026 financial year and within the previously communicated cost of less than R1bn, Sasol said.
However, to support gasifier effectiveness for the period until the destoning plant is in beneficial operation, a management decision was taken to reduce own coal production by a further 2-million tonnes and replace it with higher-quality purchased coal.
Natref’s production was 56% lower in the third quarter due to a fire in January. While repairs were completed on schedule, production ramp-up was slower than expected. Full-year production is expected to remain within the guided 5%-10% lower than 2024.
Oryx GTL production remained flat and full-year production was expected to be 50%-70% higher than 2024, Sasol said.
In its mining unit, saleable production was 5% lower in the third quarter compared with the second quarter, while year-to-date output was 2% lower than a year ago.
Sasol’s revenue in the international chemicals cluster increased in the third quarter due to higher average prices in the US and Eurasia. However, sales volumes declined, largely due to operational outages in the US.
Sasol said earnings before interest, tax, depreciation and amortisation had improved due to proactive management initiatives.
“Sasol has shown resilience in challenging conditions through effective cash flow protection measures and strategic initiatives, while continuing to face significant operational and market pressures,” said IG senior market analyst Shaun Murison.
“The company’s progress on key projects such as the destoning initiative at Secunda Operations, which is on track and within budget to improve coal quality, is a critical factor given the ongoing quality issues affecting production.”
Market guidance for Gas, Oryx, SO and Natref remains intact, but mining’s production outlook has been revised downwards to between 28-million tonnes and 30-million tonnes.
Fuels sales volumes were expected to be 1%-3% lower than in 2024 and Chemicals Africa sales volumes were also projected to be 2%-4% lower.
International Chemicals sales volumes were expected to be at the lower end of Sasol’s previous guidance, which indicated a 4%-8% decrease compared with 2024.
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