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Sasol (SOL · JSE / NYSE)

Integrated — HQ South Africa. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category IntegratedRegion AfricaCEO Simon Baloyi (2024)Jurisdiction risk Med (61)

Overview

Sasol is a South African integrated energy and chemicals giant built around Secunda, the world's largest commercial coal-to-liquids (CTL) complex, which converts coal (and Mozambique gas) into synthetic fuels and chemical feedstock. FY2025 (year to June 2025) revenue was ~US$13.7bn (R249.1bn) with EBITDA around US$3.0bn and net income of ~US$0.37bn (R6.8bn), a recovery from the FY2024 net loss driven by large US chemicals (Lake Charles/LCCP) impairments. Group value is overwhelmingly a function of Secunda synfuels economics and the Chemicals business (base and performance chemicals across Africa, America and Eurasia); the ADR trades on the NYSE and Sasol files a 20-F. The company pays no dividend as it prioritises deleveraging (net debt ~US$4.0bn) and heavy sustaining/decarbonisation capital.

Sasol's upstream oil and gas is small relative to the downstream: it holds onshore gas in Mozambique (the Pande and Temane fields plus PSA acreage) feeding Secunda via the ~865km ROMPCO pipeline, producing on the order of 50 mboe/d with roughly 0.5 bnboe of 1P (predominantly gas) reserves. This upstream provides feedstock security rather than standalone value; on standardized-measure terms the discounted future net cash flows of the gas reserves are a tiny fraction of group enterprise value, which sits in synfuels and chemicals. The investment case is therefore a leveraged, carbon-intensive integrated play: cash generation hinges on refining/fuel margins, chemical prices, oil and the ZAR, while the key overhangs are decarbonisation cost, Secunda emissions compliance, high debt, and operational/logistics reliability in South Africa.

Valuation snapshot (FY2025)

Market cap
$7.3bn
Enterprise value
$12.3bn
EV / EBITDA
4.2x
P / E
19.7x
FCF yield
9.6%
Dividend yield
0.0%
ROACE
5%
Debt / equity
66%
Net debt / EBITDA
1.3x
EV / reserves
$61.50/boe
EV / flowing
$220k/boe/d
Free cash flow
$0.7bn

Its EV/EBITDA of 4.2x is below the 5.9x median across the 142-company universe, the free-cash-flow yield of 9.6% is higher than the 6.5% median, and at $61.50/boe of proved reserves it is richer than the $13.51/boe median.

On a balanced screen across the universe, Sasol scores 29/100, strongest on valuation (37/100). Sub-scores: value 37, quality 16, growth 30, risk 66 (higher = riskier).

Reserves & production

Sasol holds approximately 0.2 billion boe of proved (1P) reserves with FY2025 production of about 56 thousand boe/d (2% liquids), a reserve life of roughly 9.8 years. Break-even: n/a (integrated CTL + chemicals) — value dominated by Secunda synfuels + chemicals; upstream gas a small minority

Net asset value (public-source)

For Sasol, no SEC standardized measure is disclosed (non-US filer or listed NOC), so a public-source proved-NAV floor is not computable from US filings. See the interactive screener's NAV tab for peers where an SEC figure exists.

Jurisdiction risk · production-weighted country risk

61 /100
Medium jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
South Africa70%58Gas frontier; regulatory delays, grid crisis, permitting.
Mozambique20%90Cabo Delgado insurgency delayed LNG; debt, security.
United States10%23Stable, deep; federal-lands leasing and permitting policy swings.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
Secunda Synfuels (CTL)South AfricaCoal-to-liquidsworld's largest commercial CTL complex; core earnings/volume engine and dominant value driver, very high carbon intensity
Sasol Chemicals (Sasolburg/Secunda)South AfricaChemicalsbase + performance chemicals integrated with synfuels feedstock
Sasol Chemicals America (Lake Charles)USAChemicalsUS Gulf Coast ethylene/derivatives complex (former LCCP); impaired but a large downstream asset
Pande & Temane gas fieldsMozambiqueUpstream gasonshore gas feeding Secunda; small vs downstream, provides feedstock security
ROMPCO pipelineMozambique / South AfricaGas pipeline~865km pipeline transporting Mozambique gas to Secunda (Sasol majority interest)
PSA gas developmentMozambiqueUpstream gasProduction Sharing Agreement gas/condensate development extending Mozambique supply
Natref refinerySouth AfricaRefiningcrude oil refinery JV (Sasol 64%) producing liquid fuels
Captive coal miningSouth AfricaCoal miningoperated collieries supplying feedstock coal to Secunda gasifiers

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)5250485056
Proved reserves (bnboe)0.700.650.600.550.20
Revenue ($bn)11.115.015.915.113.8
EBITDA ($bn)2.63.93.53.12.9
Net income ($bn)0.52.10.5-2.40.4
Free cash flow ($bn)0.90.90.3-0.00.7

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Peer companies — Integrated

SU · Suncor EnergyE · EniROSN · RosneftCVE · Cenovus EnergyIMO · Imperial OilLKOH · LukoilSIBN · Gazprom NeftGAZP · GazpromREP · RepsolOMV · OMVTATN · TatneftSNGS · SurgutneftegasGALP · Galp EnergiaORG · Origin Energy

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare SOL against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com