Sasol Profits Surge as Iran War Drives Fuel Prices

Sasol Ltd. expects earnings before interest, taxes, depreciation and amortization of up to 62 billion rand for the year ended June 30, an increase from 52 billion rand the previous year. This growth is driven by surging fuel prices and oil prices exceeding $100 a barrel, triggered by the war in Iran and trade disruptions in the Strait of Hormuz.

To mitigate potential supply shocks for South Africa, CEO Simon Baloyi increased production at the Secunda hub to its highest level in five years. The company has also taken full operational control of the Natref refinery following the business administration of its former partner, Prax Group. Baloyi noted that the company was fortunate to manage these operations while refinery margins remained extremely high.

Despite these gains, the conflict has caused operational disruptions, including the shutdown of the Oryx gas-to-liquids plant in the Persian Gulf. To address its high emissions profile, Sasol is expanding renewable energy capacity with a goal to reduce emissions by 30% by 2030.