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Sasol Ltd
NYSE:SSL

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Sasol Ltd
NYSE:SSL
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Price: 6.87 USD 7.18% Market Closed
Market Cap: 4.8B USD

Sasol Ltd
Investor Relations

In the heart of South Africa, Sasol Ltd. has emerged as a global powerhouse with its roots deeply embedded in the energy and chemical sectors. Founded in 1950, Sasol was conceived with a robust vision: to turn the country's plentiful coal deposits into valuable fuels and chemical products. The company ingeniously pioneered and implemented the Fischer-Tropsch process, an intricate gas-to-liquids technology that transformed coal and gas into synthetic fuels, lubricants, and petrochemicals. This process allowed Sasol to diversify its offerings by producing an array of products including synthetic diesel, polymers, and fertilizers, which have become indispensable in various industries worldwide. Driven by innovation, the company expanded its footprint from South Africa to the global stage, establishing operations across North America, Europe, and Asia, effectively transforming local resources into global products.

Sasol's financial architecture is intricately built on a foundation of its expansive production capabilities and diversified product portfolio. The company's revenue streams flow primarily from the sale of energy-related products like synthetic fuels and chemicals, serving industries such as automotive, construction, and agriculture. By marrying their operational prowess in extracting value from raw materials with strategic investments in technology and infrastructure, Sasol has been able to navigate the volatile markets of the energy sector. This adaptability has been pivotal in maintaining its financial health against the backdrop of fluctuating global oil prices. Alongside its traditional energy ventures, Sasol has committed to embracing sustainable practices by investing in green technologies and aiming for a lower-carbon future, a testament to its evolving business strategy in a world increasingly conscious of environmental imperatives.

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Last Earnings Call
Fiscal Period
Q4 2023
Call Date
Feb 21, 2023
AI Summary
Q4 2023

Mixed Financial Results: Sasol delivered relatively flat interim financial results for the first half of FY 2023, with performance held back by operational challenges, higher costs, and weaker demand, despite supportive oil prices.

Dividend Maintained: The board declared an interim dividend of ZAR 7 per share in line with policy, with ongoing commitment to sustainable shareholder returns despite market volatility.

Operational Headwinds: The company faced significant operational issues in South Africa, notably coal quality and productivity challenges, requiring higher external coal purchases and affecting Synfuels production.

Cost Pressures: Sasol grappled with higher feedstock, energy, and utility costs, as well as increased external purchases, which squeezed margins, particularly in Chemicals.

ESG & Decarbonization Progress: Significant advances were made in renewable energy agreements and green hydrogen projects, supporting Sasol’s 2030 and 2050 emission reduction targets.

Outlook & Guidance: Management reaffirmed full-year production and capex guidance, highlighted ongoing risks from inflation and macro volatility, and signaled continued focus on cost discipline and operational improvements.

Liquidity & Debt: Sasol maintained strong liquidity headroom of $4.5 billion and outlined plans for proactive debt refinancing, aiming to further reduce net debt.

Transformation & Cost Savings: The Sasol 2.0 program delivered ZAR 2.7 billion in fixed cost savings and ZAR 2.3 billion in gross margin improvements for the half-year.

Key Financials
EBITDA
ZAR 32 billion
Cash Generated from Operations
ZAR 21 billion
Core Headline Earnings Per Share
ZAR 24.55
Interim Dividend per Share
ZAR 7
Recordable Case Rate
0.27
12-Month Rolling High-Severity Injury Rate
7.6
Mining Productivity
930 tons per continuous miner per shift
Secunda Operations Production
2% lower than 1H22
Chemicals Gross Margin
12% decrease
Chemicals Sales Volumes
5% lower
Capital Expenditure (YTD)
ZAR 16 billion
Liquidity Headroom
$4.5 billion
Net Debt (excluding leases)
$4.5 billion
Cash Fixed Cost Savings (YTD, Sasol 2.0)
ZAR 2.7 billion
Gross Margin Improvement (YTD, Sasol 2.0)
ZAR 2.3 billion
Earnings Call Recording
Other Earnings Calls
2023

Management

Mr. Simon Baloyi M.Sc.
President, CEO & Executive Director

Simon Baloyi is an executive known for his extensive contributions to Sasol Ltd, a global integrated chemicals and energy company based in South Africa. He currently serves as the Executive Vice President of Sasol’s Energy Operations. In this capacity, Baloyi plays a critical role in overseeing and advancing the company’s energy operations, ensuring efficiency, sustainability, and strategic development in the dynamic energy sector. With an academic background that includes a Master of Science degree, Simon Baloyi has demonstrated a strong foundation in the technical aspects of his field. His leadership is marked by a commitment to driving innovation and operational excellence within Sasol, contributing to the company's growth and adaptation in the face of global energy challenges. Throughout his career at Sasol, Baloyi has been recognized for his adept management skills and his strategic insight into the energy market. His leadership is especially significant in navigating the company's efforts towards sustainable energy solutions and operational advancements.

Dr. Sarushen D Pillay
Executive Vice President of Business Building, Strategy & Technology
No Bio Available
Mr. Vuyo Dominic Kahla BA, LLB
Executive Director and Executive VP of Commercial & Legal

Vuyo Dominic Kahla has been a prominent figure at Sasol Ltd, where he has served as the Executive Vice President: Advisory, Assurance and Supply Chain. Armed with a BA and an LLB, Kahla has an extensive legal and business background, which he has utilized in his various roles within the company. Before joining Sasol, Kahla gained valuable experience across several sectors. He worked in both private practice and the public sector, where he honed his skills in corporate governance, compliance, and legal affairs. His expertise in these areas has made him a crucial asset to Sasol, where he has been instrumental in guiding the company’s legal, advisory, and supply chain functions. At Sasol, Kahla is responsible for ensuring that the company adheres to both internal and external legal requirements while also optimizing its supply chain processes. His role involves providing strategic advice to the executive team, supporting risk management efforts, and ensuring that the company operates efficiently and ethically. Kahla's contributions have been pivotal in Sasol's commitment to maintaining high standards of corporate governance and sustainability. His leadership and strategic insights have been recognized within the industry, and he continues to contribute significantly to Sasol's growth and success.

Ms. Christian H Herrmann
Executive Vice President of Marketing and Sales, Southern Africa Energy & Chemicals

Christian H. Herrmann serves as the Senior Vice President and Executive Director at Sasol Ltd. She has an extensive career in the chemical and energy sectors, bringing valuable expertise in operational management, business strategy, and leadership. Before her role at Sasol, Herrmann held various leadership positions in other prominent global companies, where she was instrumental in driving growth, innovation, and sustainability initiatives. Her academic background in chemical engineering and business administration further reinforces her capabilities in leading complex projects and navigating the dynamic global energy landscape. Herrmann is known for her commitment to fostering diversity and inclusion within the industry, as well as her focus on environmental stewardship and community engagement.

Ms. Charlotte K. Mokoena B.A., BA (Hon), BSoc Sciences
Executive Vice President of Human Resources & Corporate Affairs Stakeholder Relations

Charlotte K. Mokoena is a notable executive at Sasol Ltd., serving as the Executive Vice President for Human Resources and Stakeholder Relations. With a robust educational background, she holds a Bachelor of Arts degree, a Bachelor of Arts Honors degree, and a Bachelor of Social Sciences degree. Mokoena's extensive experience in transformation and human resources encompasses various industries, including telecommunications, IT, and retail, giving her a broad perspective on managing human capital within complex environments. Before joining Sasol, Mokoena held significant leadership positions, including being the HR director at Telkom and the Vice President for Human Resources at African Minerals. At Sasol, her role involves driving the global human resources strategy and leading initiatives that engage stakeholders effectively, aligning with the company's mission to integrate sustainable development into its operations. Her work is characterized by a commitment to fostering a culture of inclusivity and innovation within the workplace.

Mr. Fleetwood Rawstorne Grobler B Eng(Mech), BEng(Mech)
Executive Advisor

Fleetwood Rawstorne Grobler is a seasoned executive who has made significant contributions to Sasol Ltd, a leading global integrated chemicals and energy company. With a Bachelor of Engineering degree in Mechanical Engineering, Grobler has leveraged his technical background to ascend through various leadership roles within the company. He started his career at Sasol in 1984 and has amassed extensive experience in operations, technology, and project management over the decades. His expertise has played a vital role in driving the company's strategic initiatives, particularly in enhancing operational efficiencies and innovation in energy and chemical sectors. Grobler was appointed as the President and Chief Executive Officer (CEO) of Sasol in November 2019. Under his leadership, he has focused on transforming Sasol into a more sustainable and competitive entity, steering it through pivotal projects and global market challenges. His tenure as CEO has been marked by efforts to address operational challenges, advance sustainability initiatives, and focus on integrating advanced technologies to reduce the carbon footprint of Sasol's operations. His leadership style and strategic vision continue to shape the company's path forward in the evolving global energy landscape.

Mr. Hermann Wenhold
Executive Vice President of Mining, Risk and Safety, Health & Environment

Hermann Wenhold is a noted executive associated with Sasol Ltd, a global integrated chemicals and energy company based in South Africa. Wenhold has held several critical roles within Sasol, significantly impacting the company's operational and strategic directions. His expertise lies in the areas of financial management and strategic planning, having influenced major financial decisions and project implementations at Sasol. Wenhold has been recognized for his leadership skills and his ability to drive efficiency while navigating the complex global markets in which Sasol operates. His work has been vital in aligning Sasol's goals with economic and environmental sustainability.

Ms. Antje G M Gerber
Executive Vice President of International Chemicals

Antje G. M. Gerber is an influential business executive and has held a notable position within Sasol Ltd, a global integrated chemicals and energy company. Known for her strong leadership and strategic insight, Gerber has played a significant role in guiding the company's initiatives and operations, particularly in the areas of energy transition and sustainability. She has a background in corporate management and has contributed to various strategic developments within Sasol, helping navigate complex challenges in the energy sector. Her expertise and leadership have been instrumental in advancing Sasol's business objectives and in positioning the company as a progressive entity in the evolving global energy landscape. Antje Gerber's work often highlights a commitment to innovation, operational excellence, and sustainable growth, all of which are aligned with Sasol's broader goals of delivering superior value to its shareholders and contributing positively to the communities in which it operates.

Mr. Walt P Bruns
CFO & Executive Director

Mr. Walt P. Bruns is recognized for his role as an executive at Sasol Ltd, a global integrated chemicals and energy company based in South Africa. Throughout his tenure, he has contributed significantly to the company's strategic operations. With expertise in the fields of energy, chemicals, and business management, Mr. Bruns has played a key role in advancing Sasol's initiatives and expanding its market presence. His leadership has been instrumental in navigating the complex challenges of the industry, focusing on sustainability and innovation. Under his guidance, the company has continued to prioritize sustainable practices and operational excellence, solidifying its position as a leader in the energy and chemical sectors.

Tiffany Sydow
VP & Investor Relations Officer

Tiffany Sydow is a notable executive at Sasol Ltd, where she serves in a leading capacity in the human resources department. With a strong background in human capital management, she has played a pivotal role in shaping the company's HR strategies and initiatives. Sydow's leadership is characterized by her focus on fostering a dynamic work culture, driving talent development programs, and enhancing employee engagement. Her strategic vision and emphasis on inclusivity have contributed significantly to aligning Sasol's human resource practices with its broader business objectives. Tiffany Sydow's expertise in HR and her contributions have been instrumental in supporting the company's operational success and long-term sustainability.

Contacts

Address
Johannesburg
50 Katherine Street Sandton
Contacts
+27103445000.0
www.sasol.com