Sasol Shares Soar! What's Driving the Surge in Price?

By: Analia Gómez Published On: 25/08/2025

Finances Finances Finances Finances

Sasol shares experienced a significant surge on the JSE on Monday morning, reflecting positive market sentiment following the release of the company's full-year earnings report. At 10:00 AM, Sasol's shares were trading at R115.70, a 6.3% increase, having reached an intraday high of R116.17. This impressive performance contributes to a year-to-date gain of 30.8% for the group.

Key Factors Behind the Rise

The jump in Sasol's share price is attributed to several factors, including improved headline earnings per share (HEPS), which rose by 93% to 35.13c for the year ending June. Earnings before interest and tax (EBIT) also saw a substantial increase to R18.8 billion, a significant turnaround from the R27.3 billion loss reported the previous year. This improvement was bolstered by non-recurring items such as the Transnet net cash settlement of R4.3 billion and a reduction in the environmental rehabilitation provision of R2.9 billion.

CEO Simon Baloyi stated that the company is actively advancing strategic initiatives aimed at restoring the Southern Africa value chain and fostering growth. The reduction in impairments, from R74.9 billion to R20.7 billion, also contributed positively to investor confidence.

Challenges and Headwinds

Despite the positive momentum, Sasol faced headwinds during the year. A 15% decline in the rand oil price, reduced refining margins, and lower fuel price differentials, coupled with a 3% decrease in sales volumes, resulted in a 9% decrease in turnover to R249 billion. Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) also fell by 14% to R51.8 billion.

Rand Oil Price Decline: A 15% decrease impacted revenue.
Refining Margins: Significant reductions affected profitability.
Sales Volumes: A 3% decrease further impacted turnover.

While the Secunda and Sasolburg liquid fuel refinery cash generating units (CGU) remain fully impaired, the overall reduction in total impairments signals a positive step towards financial recovery and strategic realignment. Investors will be closely watching Sasol's performance in the coming months as it continues to navigate a complex and evolving energy landscape.