South African Executive Simon Baloyi-led Sasol Posts 6.7 Billion In Revenue In H1 2024

Sasol, the Gauteng-based energy and chemicals group led by South African executive Simon Baloyi, reported a 10.41 percent drop in revenue for the first half of its 2025 fiscal year. The companys revenue fell to R122.1 billion 6.65 billion for the six months ending Dec. 31, 2024 , as lower crude prices and weak refining margins weighed on performance.

The decline in revenue from the previous years R136.29 billion 7.44 billion was driven by a combination of weaker oil prices, a 5 percent drop in sales volumes, and softer market demand. Sasols operating profit took a bigger hit, falling 40 percent to R9.5 billion 518.58 million, largely due to R6.2 billion 338.41 million in impairment charges at its Secunda and Sasolburg refineries.

The companys Southern Africa energy division was particularly hard-hit, with its fuel operations recording a loss of R998 million 54.38 million, a stark contrast to the R9.55 billion 520.37 million profit reported a year earlier. Meanwhile, its international chemicals business showed resilience, with the Americas unit swinging to a R657 million 35.8 million profit from a R1.87 billion 101.89 million loss in the previous period.

Despite weak earnings, Sasol managed to improve cash flow from operations by 20 percent to R17.6 billion 960.41 million, thanks to cost-cutting measures and better working capital management. Free cash flow also improved, narrowing to a deficit of R1.1 billion 60.03 million from R6.45 billion 351.96 million in the prior period.

However, the companys debt burden remains a concern. Net debt excluding leases climbed to R81.8 billion 4.46 billion from R73.7 billion 4.02 billion in June 2024, surpassing Sasols debt sustainability threshold of R73.6 billion 4 billion. As a result, the board decided not to declare an interim dividend.