Sasol boosts fuel outlook as coal quality milestone hits

Sasol (NYSE:SSL) signaled a turning point for its Southern African energy operations Thursday, as the energy and chemicals giant reached "beneficial operation" at its critical coal destoning plant, clearing a primary bottleneck for its Secunda flagship.

In a mid-year operational update, the Johannesburg-based firm raised its full-year fuel sales guidance while simultaneously tempering production targets for its Mozambique gas assets.

The $1.1 billion destoning facility reached full operation in December 2025, enabling Sasol to reopen low-quality mining sections and improve gasifier yields at its Secunda Operations.

With coal impurities—or "sinks"—now tracking at the lower end of the 12% to 14% range, the company expects to sustain higher production levels through 2026.

This operational stability, combined with the commissioning of a third low-carbon boiler at the Natref refinery, prompted Sasol to hike its FY26 fuel sales outlook to a growth range of 5% to 10% over the prior year.

However, the update was tempered by a downward revision for gas production, now expected to decline between 0% and 5% due to natural reservoir depletion and delays in new infrastructure projects in Mozambique.

Despite these headwinds, the company achieved a "fatality-free" second quarter and secured a new South African electricity trading license in November 2025, marking a significant step toward its "Nomusize" integrated power business strategy.

In the U.S., the company’s LIP JV cracker successfully restarted at year-end following an extended outage, positioning the international chemicals unit for a stronger second half.