JSE-listed energy and chemicals company Sasol, reporting on its performance for the six months to December 31, 2025, says its Southern Africa destoning plant reached beneficial operation in December, while its integrated polyethylene cracker plant in Louisiana, in the US, was also restarted following an extended outage.

During the period under review, Sasol remained focused on stable and reliable operational performance, while reinforcing the importance of safety in all aspects of operations.

Further, the company made progress on key capital market day priorities, with discipline maintained and delivery ensured on factors within its control, amid a challenging and uncertain macroeconomic environment, it says.

In the Southern Africa business, the beneficial operation of the destoning plant marks an important milestone in improving coal quality. Ramp-up is progressing, with average sinks now tracking the lower end of the 12% to 14% guidance range.

Given the progress on destoning, all previously closed low-quality mining sections are now fully operational. This, together with improved gasifier and equipment availability at Secunda Operations, supported higher Secunda Operations production during the quarter, says Sasol.

Meanwhile, gas supply from Mozambique was lower compared with the previous quarter, mainly resulting from the expected natural decline from Sasol's petroleum production agreement asset.

Improvements are expected in the following six months, as the production sharing agreement ramps up. Gas and coal supply continue to be managed on an integrated basis to support reliable Secunda Operations and value optimisation.

Further, the company’s joint venture Natref refinery delivered improved production performance during the quarter, further supported by additional volumes from Sasol’s use of the Prax South Africa shareholding capacity.

Stronger Secunda Operations and Natref operations supported higher fuels sales volumes and the continued placement of product in higher-margin channels in line with its strategy.

Meanwhile, chemicals market conditions remained soft across all regions, which resulted in lower revenue.

In its international chemicals business, lower US ethylene and palm kernel oil pricing and lower volumes weighed on revenue for the quarter.

In its chemicals Africa business, sales volumes increased compared with the previous quarter, and were supported by operational improvements with a continued ramp-up in sales volumes in the following six-month period.

During the second quarter from October 1 to December 31, the third and final new low-carbon boiler at Natref was successfully commissioned, which improved steam and operational reliability while supporting the company's decarbonisation objectives.

Sasol received notice in October 2025 that Prax South Africa had filed for business rescue. As agreed with the business rescue practitioners, Sasol continues to operate the Natref refinery, using available Prax South Africa capacity, with product supply remaining uninterrupted.

Additionally, Sasol's mothballing and closure programme in its international chemicals business is progressing to plan.

Further, in November 2025, the National Energy Regulator of South Africa approved Sasol’s electricity trading licence application, trading as Nomusize, which supports its integrated power business objectives, the company says.

The company continues to hedge its exposure to oil prices and currency movements. Given the prevailing market conditions, a broader range of hedging instruments has been used to maintain downside protection.

Fuel sales volumes for the full year have been revised upward to 5% to 10% higher than the 2025 financial year, up from 0% to 3% higher than the 2025 financial year, supported by the improved Natref performance.

However, gas production volumes have been revised down to 0% to 5% below the 2025 financial year volumes, down from 0% to 10% above 2025 levels, owing to a production sharing agreement and Central Térmica de Temane delays, as well as lower internal and external demand.

Performance across the rest of the portfolio remains in line with market guidance, the company says.

Looking ahead, the operating environment is expected to remain challenging, given heightened geopolitical tensions, evolving global trade dynamics and continued softness in certain end markets impacting financial performance, Sasol says.

The company will focus on responding proactively to changes in the operating environment.

In terms of safety, the quarter from October 1 to December 31 was fatality-free. Learnings from the fatality in mining in the three months from July 1 to September 30 are being embedded, with continued efforts to strengthen the safety culture across its business and ensure every employee returns home safely, Sasol says.