Investing.com -- South African petrochemical firm Sasol Ltd (JO:SOLJ) (NYSE:SSL) expects reduced output across its Mining and Chemicals divisions for the current financial year, as it adjusts to ongoing supply chain pressures and global tariff uncertainties, but the company maintained its full-year financial guidance.
In a production and sales update covering the nine months to March 31, 2025, the company said mining production is now forecast at 28 to 30 million tons, following a decision to cut back on lower-quality in-house coal and instead source higher-quality coal externally.
The average mining cost per ton is now expected to rise to between R650 and R670 per ton.
Sales volumes in Chemicals Africa are projected to fall 2–4% compared to FY24, due to lower production at Secunda Operations and ongoing uncertainty linked to global trade tensions.
International Chemicals volumes are also expected to reach the lower end of Sasol’s prior guidance range for a 4–8% year-on-year decline, largely because of the unplanned outage at the LIP joint venture cracker in the U.S. and the tariff-related risks.
Despite the weaker volume outlook, Sasol confirmed that financial metrics for 2025 (FY25) remain broadly in line with guidance. The company expects cash fixed cost growth to stay below inflation and capital expenditure to land at the lower end of its R28–R30 billion range.
The group is also monitoring the potential impact of recent U.S. tariff changes. While new import duties were announced on April 3, most were suspended for 90 days starting April 9. “Engagements with the relevant stakeholders are ongoing and we remain focused on ensuring continuity, mitigating potential disruptions and identifying any upside opportunities for Sasol,” the company said.
Sasol also said that it continues to maintain strong liquidity and tight cost controls as it navigates global uncertainty. The group’s hedging strategy remains a key element of balance sheet protection.
Its FY25 oil hedging programme is now complete, with an average Brent floor price of around $64/bbl for the fourth quarter. The FY26 programme is nearly finished, with hedge floors averaging approximately $60/bbl.
Market guidance for the Gas, Oryx, Secunda Operations, and Natref segments remains unchanged. Fuels sales volumes, however, are now expected to decline by 1–3% year-on-year, primarily due to supply disruptions.