Over the past year, Sasol Limited (JSE: SOL), a vital component of South Africa’s chemical and energy industries, has seen notable swings in the price of its shares. Sasol’s stock saw a significant drop from its 52-week peak of ZAR 17,380.00 to close at ZAR 7,461.00 on March 25, 2025.
This decline has been caused by a number of things. Due to weaker oil prices, lower refining margins, and lower sales volumes, Sasol reported a 31% decline in headline profits per share (HEPS) to R14.13 in the six months ending December 31, 2024.
Dividend payments were also halted as a result of the company’s R27.3 billion net loss for the year that ended on June 30, 2024.
Despite these challenges, Sasol has initiated strategic measures to stabilize and enhance its financial standing. The company is exploring options to derive greater value from its chemicals business, including potential partnerships or a separate listing. Operationally, Sasol reported a 20% increase in cash generated by operating activities to R17.6 billion, supported by stringent cost management and a 6% reduction in capital expenditure.
Furthermore, Sasol’s annual production report indicated that mining, fuel, and chemicals production were within market guidance, with gas production in Mozambique exceeding expectations.
Investors considering Sasol should weigh these strategic initiatives against the backdrop of market volatility and operational challenges. While the company faces headwinds, its efforts to optimize operations and explore new avenues for growth may position it for recovery in the long term.