Sasol Integrated Report 2022 - Book - Page 17
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S STATEMENT (CONTINUED)
Our Group Top Priorities for 2023
MATERIAL MATTER
Generated R56 billion in cash from operations,
reflecting a 24% improvement from FY21.
Underlying these metrics, our Energy business
benefited from a recovery in fuels demand post the
COVID-19 demand impact, including a slight increase
in volumes in the last quarter in anticipation of
record high fuel prices. This was offset by lower
production volumes in our Secunda and Sasolburg
downstream value chains following feedstock
and operational challenges which impacted the
Southern African value chain.
Our Mining operations experienced some setbacks
in the first half of the year, and consequently,
our productivity was lower compared to the previous
year. However, the improvements in the second half
of the year, which was supplemented with external
purchases, resulted in the coal stockpile being
restored to more than 1,5 million tons.
We continue working to improve productivity
and maintain healthy stockpile levels at Mining.
This includes reaching targeted productivity levels
across all mines through focused performance
initiatives. Furthermore, we are implementing coal
quality improvement opportunities to support optimal
Secunda production, including blending, mine
deployment and procurement of higher quality coal.
We are also making good progress in implementing
safety remediation programmes to address the
findings of our previous high-severity incidents.
Across our Southern African operations, we are
focused on improving the effectiveness of our
shutdowns and pursuing technical options to
improve gasifier availability to mitigate coal quality
issues. The reliability of our operations is supported
by disciplined capital allocation.
* Total debt excluding leases less cash and cash equivalents.
Our Chemicals business delivered a 21% increase
in revenue, benefiting from a stronger average sales
basket price. Overall volumes were 12% lower than
the prior year, largely due to the divestment of the
US Base Chemicals assets concluded in December
2020 and lower production from South Africa.
Sales volumes for our specialty chemical business
divisions were higher as the LCCC ramp-up continues.
Our US team is also maintaining close collaboration
with our partner in the Louisiana Integrated
Polyethylene JV, to ensure stable operations.
Pursue Zero
Harm and
continue
embedding
our culture
Define people and community plans for decarbonisation
roadmaps and emerging value pools
Deliver on 2030 GHG emissions reduction programme
and environmental compliance commitments
Define pathways to meet 2050 Net Zero GHG ambition
Maintaining focus
First and foremost, we must deliver a safety record
of Zero Harm. As important, will be progressing our
climate change and broader environmental, social
and governance goals, which are fundamental to our
long-term sustainability. We will build on the
excellent progress made in FY22 to drive further
execution of our 2030 roadmap.
Advance
sustainability
Deliver optionality relating to flexible sustainable
feedstock opportunities
Maintain balance sheet flexibility through all aspects
of cash flow management while maintaining dividends
Deliver
and maximise
value
Delivering on these areas will enable safe and reliable
operations, a sustainable business model, enhanced
cash flow generation and, ultimately, sustainable
shareholder returns.
26 August 2022
Progress opportunities to enable sustainable growth
by strengthening our technology, partnering and
sustainability solutions (including coal value chain)
Deliver Sasol 2.0 in a prioritised, sequenced manner
and mature the value creation plan for FY24/25
Additionally, operational stability and focused volume
improvement will ensure that we maximise value
from our well-invested assets. Delivering on our
Sasol 2.0 targets will position us to be sustainably
profitable and competitive in a low oil price world.
Fleetwood Grobler
President and Chief Executive Officer
Accelerate our capability building programme to enable
our strategy
Strengthen stakeholder trust through continued delivery
on community, regulatory and shareholder promises
In Europe, we have appointed a task team to respond
to potential gas supply constraints, which could
impact all producers in the region.
Looking ahead, there are several key areas
where we must maintain our relentless focus to
deliver on our ambition to grow shared value, while
accelerating our transition.
Promote diversity, equity and inclusion in the workplace
SASOL INTEGRATED REPORT 2022
Advance our future growth value streams and deliver
sustainable returns through disciplined capital allocation
Enhance operational discipline, efficiency and
effectiveness, and drive reliable feedstock supply
and operations across all value chains
Continuously improve our service delivery and
customer experience
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LINK TO MATERIAL MATTER
Core headline earnings per share increased
by more than 100% to R68,54 supporting the
reinstatement of dividends of R14,70 per share.
Continue to strengthen our values, culture and enhance
our Employee Value Proposition
PEOPLE
Significantly strengthened the balance
sheet, ending with net debt* of US$3,8 billion
at 30 June 2022, well below the target of
US$5 billion.
Ensure safety, operational discipline and care
for our people in our strive for Zero Harm
PLANET
Adjusted earnings before interest, tax,
depreciation and amortisation (adjusted EBITDA)
increased by 48% to R72 billion.
In Mozambique, we delivered a strong performance,
exceeding our production plan and market guidance
of 100 – 110 billion standard cubic feet (bscf). Despite
the challenges associated with COVID-19, the drilling
campaign is progressing safely and within cost and
schedule. The results from the four infill wells drilled
to date in the Petroleum Production Agreement (PPA)
area are in line with reservoir quality expectations.
PROFIT
A few key financial metrics to highlight:
