Sasol’s Profits Tumble 31%—But SOL Defies Gravity With 2025 Rally
Another quarter, another earnings bloodbath—Sasol joins the corporate casualty list with profits plunging nearly a third. Meanwhile, SOL plays by its own rules, staging a comeback that’d make Wall Street’s ’efficient market’ theorists blush.
From Boardroom to Blockchain
While traditional energy giants sweat over balance sheets, decentralized networks quietly eat their lunch. SOL’s 2025 rebound proves crypto winters thaw faster than legacy industries adapt.
The Cynic’s Corner
Funny how ’disruptive tech’ always seems to bounce back faster than the dinosaurs funding it. Maybe those VC checks cleared after all.
Strategic Measures to Counter Operational Hurdles
To adapt to market challenges, Sasol has made strategic operational adjustments:
Coal Adjustments: Reduced coal production by 2 million tonnes while improving coal quality to boost gasifier efficiency.
Environmental Compliance: Secured renewed Atmospheric Emissions Licenses at key sites like Secunda and Natref, supporting longer-term operations amid South Africa’s evolving carbon tax regime.
Governance Focus: Appointed Ms. Elizna Viljoen as Group Company Secretary, strengthening corporate governance amid heightened financial pressures.
These efforts aim to position Sasol more competitively in a tightening regulatory and market environment.
Sasol’s Financial Discipline and Hedging Strategies
Looking ahead, Sasol remains committed to financial prudence:
Capital Expenditure: Plans to invest between R28–R30 billion in FY25, prioritizing long-term value drivers.
Oil Hedging: Locked in Brent crude prices at US$64 per barrel for FY25, helping shield cash flows from oil price volatility.
These moves reinforce Sasol’s intent to navigate uncertainty while preserving operational strength.
Sasol Ltd (SOL) Technical Outlook: Key Levels to Watch
Technically, Sasol Ltd (SOL) is in aphase. After a sharp April recovery, the stock faces stiff resistance around 6,666 ZAC. A confirmed breakout above this level could unlock upside potential toward:
Sasol Price Chart – Source: TradingviewFirst target: 6,987 ZAC
Second target: 7,393 ZAC
However, failure to hold above 6,347 ZAC could expose the stock to renewed selling pressure toward 5,949 ZAC.
Buy Breakout: Above 6,666 ZAC
Upside Targets: 6,987 and 7,393 ZAC
Support to Watch: 6,347 ZAC
Stop-Loss: Below 6,240 ZAC
Patience is essential—investors should wait for a decisive move before committing to new positions, given the risk of sideways price action NEAR current levels.
Half-year profit drop: 31%
Free cash flow: -1.1 billion rand
Net debt: $4.3 billion
Share price (April 2025): 6,567 ZAC
FY25 Capex Target: R28–R30 billion
Sasol’s combination of strategic discipline and tentative technical recovery could offer investors cautious optimism as 2025 progresses.