Sasol unveiled its refined corporate strategy, which sets a clear path for sustainable growth and accelerated shareholder returns.
Joint President and Chief Executive Officer (CEO), Stephen Cornell says: "In developing our strategy, we considered both the opportunities and risks we face, informed by developments in the external environment. It is clear that megatrends influential to our business will result in greater demand for chemicals and energy products in key markets we serve."
Key megatrends and assumptions informing Sasol's strategic choices are global population growth and further urbanisation, the move to even greater efficiency and performance, in all aspects of business, supported by digitalisation and sustained volatility in both oil prices and exchange rates.
"Against this backdrop, our value-based growth strategy is premised on further enhancing our foundation businesses, leveraging our core strengths in specialty chemicals, exploration and production (E&P) and retail fuels, underpinned by increased discipline in capital allocation," says Cornell.
Sasol's foundation businesses, which are already cash positive at a US$40 per barrel oil price, provide a robust platform for long-term growth and delivery of ongoing value to shareholders.
Joint President and CEO, Bongani Nqwababa says: "Our delivery track record - evidenced in recent years by significant volume improvements at key facilities, our competitive cost position and global portfolio of highly cash-generative, diversified assets - places us in a strong position to realise greater value from our foundation businesses. Here, operational excellence, continuous improvement and digitalisation programmes, as well as rigorous asset reviews, will enable us to become a more resilient, efficient and effective organisation."
To date, Sasol has completed reviews on more than half of its global assets, underpinned by the company's drive to improve asset performance, not liquidity requirements. Thus far, the reviews have confirmed that the majority of the company's assets will be retained and clear improvement actions have been defined for each.
The reviews conducted to date did, however, identify the Canadian shale gas asset as being non-core. In this respect, Sasol will commence a structured divestment process involving Progress Energy, the partner in this asset.
With reference to the clear choices made to drive value-based growth, in Sasol's Chemicals Business the company will progressively grow its portfolio of high-value specialty chemicals in attractive growth sectors.