- Sasol reported a 31% profit drop amid weaker oil prices but is showing signs of stock recovery in 2025.
- Strategic cost-cutting, environmental compliance, and strong hedging plans are helping Sasol stabilize despite financial pressures.
Sasol Limited (JSE: SOL), South Africa’s energy and chemicals powerhouse, has reported a challenging half-year, yet glimmers of optimism are emerging for investors. The company announced a 31% decline in profits for the six months ending December 2024, largely due to softer oil prices and dwindling sales volumes.
In response, Sasol withheld its dividend, revealing a negative free cash flow of 1.1 billion rand and net debt ballooning to $4.3 billion. Despite these daunting figures, the market reaction has been measured. As of April 2025, Sasol’s stock is trading near 6,567 ZAC, stabilizing after a sharp selloff. Analysts suggest a decisive break above the 6,666 ZAC resistance could set the stage for rallies toward 6,987 and 7,393 ZAC.
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To counter ongoing pressures, Sasol is executing strategic initiatives. Coal production has been trimmed by 2 million tonnes to improve quality and boost gasifier efficiency, a move designed to optimize operations. Moreover, the company has secured critical environmental licenses at Secunda and Natref, ensuring compliance under South Africa’s tightening carbon tax regulations.
On the governance front, the appointment of Ms. Elizna Viljoen as Group Company Secretary signals a strengthened corporate structure at a crucial time.
Financially, Sasol is maintaining a disciplined approach. The group plans to invest R28–R30 billion during FY25, prioritizing long-term sustainability projects. In addition, hedging strategies have locked in Brent crude prices at US$64 per barrel, offering a buffer against future oil price swings.
Technically, Sasol’s stock is caught in a mid-range consolidation phase. Support at 6,347 ZAC remains critical, while upside targets beyond 6,666 ZAC offer hope for bullish momentum. However, a slip below 6,347 ZAC could reopen downside risks toward 5,949 ZAC.
With calculated strategic moves and cautious investor optimism, Sasol is working to turn today’s challenges into tomorrow’s opportunities.
