Sasol’s operational grit shining through, keeping the BizNews tribe in its fan club

Key topics:Sasol stabilises operations, reports fatality-free Q2 at Secunda.Coal improvements boost Secunda output; Natref JV turns a win.Chemicals remain weak globally; electricity and cost moves underway..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.For the BizNews tribe, Sasol has long been a proxy for South Africa’s industrial heartbeat—complex, resilient, but often hamstrung by its own legacy. It is also one of our community’s favourite stocks, having delivered a 53% return since being included in the BizNews Shyft portfolio (click here). The latest business update, covering Sasol’s six months to end December and released late last week, tells a story of a company getting its hands dirty to fix what it can control, while navigating a storm of factors it cannot.The headline is clear: Sasol’s operational engine room is stabilising. After a tragic fatality in the first quarter, it has reported a fatality-free second quarter. Because of a poor history in the politically charged resource sector in South Africa, safety is the lead indicator of management focus. This improvement suggests the message is landing.The Coal Conundrum: Solved? The most significant news for Sasol followers is in the coal fields. For years, "coal quality" has been the excuse du jour for production misses at Secunda. No longer. The much-vaunted destoning plant finally reached "beneficial operation" in December 2025..Read more:.Sasol quarterlies: Setbacks in Southern Africa operations offset by bold US chemicals revival plans.This is a big deal. By stripping out rocks and impurities before they reach the gasifiers, Sasol has reopened mining sections that were previously deemed too low-quality to work. The result? Secunda Operations production is up, supported by better machinery availability. It’s a textbook example of spending capital (less than R1bn, if memory serves) to unlock massive efficiency gains.The Natref Plot Twist Then there is the curious case of Natref. Remember Prax? The British group that swept in to buy TotalEnergies' stake in the refinery? Well, in October 2025, Prax SA filed for business rescue—a development that would usually send a shiver down the spine of any joint venture partner.Instead of panicking, Sasol seems to have simply taken the keys. The update confirms that Sasol continues to operate the refinery and is utilising Prax’s capacity. Far from collapsing, Natref’s performance improved, giving management the confidence to raise their full-year fuel sales guidance by 5-10% above 2025 levels. It’s a remarkable pivot: turning a partner’s distress into an operational win.Chemicals: The Atlantic Drag While the South African foundation is firming up, the international picture remains murky. The "Chemicals market conditions remained soft" line is becoming a recurring theme in these business updates.The US operations, centred around the Lake Charles complex, were hit by a double whammy: lower ethylene prices and an extended outage at the LIP JV cracker. While the plant restarted in December, the revenue hit was unavoidable. Management is responding with "self-help measures"—corporate speak for cost-cutting—which are reportedly delivering benefits. But for shareholders, the chemicals division remains a waiting game for a global cyclical upturn.Looking Ahead There are green shoots of innovation here, too. In November, NERSA approved Sasol’s electricity trading license under the entity "Nomusize". It’s a small step, but a critical one for Sasol’s integrated power ambitions..Read more:.Sasol streamlines business, sees volume improvement across operations.The outlook remains cautious. Gas production guidance has been trimmed due to delays in Mozambique, and the geopolitical environment is described as "challenging". Yet, the tone is one of discipline. Sasol is hedging its bets (quite literally, with a broader range of instruments) and keeping its head down.For the value investor, the question remains: Is the current share price reflecting the "soft" chemicals market, or overlooking the "hard" operational fixes in Secunda? On the evidence of this update, the latter is looking more robust than it has in years.

Sasol’s operational grit shining through, keeping the BizNews tribe in its fan club

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