Sasol Integrated Report 2023 - Book - Page 30
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PERFORMANCE
CREATING VALUE
GOVERNANCE AND REWARDS
ADMINISTRATION
CHIEF FINANCIAL OFFICER’S STATEMENT CONTINUED
Conclusion
SASOL’S BROAD-BASED BLACK ECONOMIC EMPOWERMENT
Acknowledging the need to broaden the participation in the economy of previously
disadvantaged South Africans, over the years Sasol has implemented a number of Broad-Based
Black Economic Empowerment (B-BBEE) transactions in South Africa. These include:
Sasol Khanyisa was implemented on 1 June 2018.
Sasol Khanyisa has been designed to comply
with the revised B-BBEE legislation in South
Africa and seeks to ensure ongoing and
sustainable Broad-Based Black Economic
Empowerment (B-BBEE) ownership credentials
for Sasol Limited.
Sasol Khanyisa contains a number of elements
structured at both a Sasol Limited and at a
subsidiary level, Sasol South Africa Limited (SSA)
which is a wholly-owned subsidiary of Sasol
Limited and houses the majority of the Group’s
South African operations. Sasol Khanyisa Tier 1
was concluded in 2021. At the end of 10 years,
or earlier if the underlying funding has been
settled, the participants in Khanyisa Tier 2,
will exchange their SSA shareholding on a fair
value-for-value basis for Sasol BEE ordinary
shares to the extent that value was created
during the transaction term.
Sasol BEE ordinary shares can only be traded
between Black Persons on the Empowerment
Segment of the JSE. This transaction will
therefore ensure evergreen B-BBEE ownership
credentials for Sasol Limited.
The Ixia Coal transaction, which became effective
on 29 September 2010, is a B-BBEE transaction,
in line with Sasol Mining’s empowerment
strategy and its commitment to comply with
the objectives of legislation in South Africa.
The members of Ixia Coal, through WipCoal
(Pty) Ltd and Sasol Mining Holdings (Pty) Ltd,
subscribed to a 20% share in Sasol Mining.
The members contributed in cash in their
respective shareholding of 51% and 49% to
Ixia Coal, while the balance of the contribution
was funded through preference share debt.
The transaction resulted in WipCoal effectively
owning 10,2% of the equity in Sasol Mining.
The Tshwarisano B-BBEE transaction came into
effect on 1 July 2006. In terms of the agreement,
Tshwarisano LFB Investment (Pty) Limited
(Tshwarisano), an independent third party which
does not form part of the Sasol Group, acquired
a 25% shareholding in Sasol Oil (Pty) Limited.
Sasol provided considerable facilitation and
support for Tshwarisano’s financing
requirements.
While the year was challenging, we remain positive
that the progress we achieved in improving
operations in the second half will extend and
be further improved in the next financial year.
Our capital allocation framework serves as
the foundation for our investment decisions.
This framework ensures a well-rounded strategy
for addressing our capital requirements across
competing priorities. We continue to prioritise
our ‘Maintain’ capital to ensure we have stable
and reliable operations well into the future.
As we progress our emission reduction roadmap,
our pathways are becoming increasingly defined.
We continuously evaluate and enhance our
‘Transform’ capital spend towards our roadmap,
ensuring that we make the most cost-effective
decisions.
Looking ahead, we expect the uncertain global
economic environment to continue weighing on
prices and demand in the short to medium term,
with continued volatility in oil prices and weak
margins for refined products and chemicals.
We anticipate ongoing high inflation, which requires
careful management of costs and capital strategies.
0,48 (0,41)
ENERGY BUSINESS
99,52
(99,59)
Public
Non-Public
Number of shares
in issue
ˇ
Cost competitiveness: We will continue to drive
strict cost and capital discipline through our
Sasol 2.0 programme.
Despite the many uncertainties of our external and
operating environment, I have the utmost confidence
in Team Sasol’s ability to adapt, thrive and deliver.
Hanré Rossouw
Chief Financial Officer
31 August 2023
CHEMICALS BUSINESS
CHEMICALS AFRICA SALES
975 3 1 100 t/cm/s
ongoing full potential roll-out
0 3 5% higher
improved operational and supply
chain performance
MOZAMBIQUE GAS PRODUCTION
SECUNDA OPERATIONS PRODUCTION
ˇ
Margin optimisation: We are committed to
optimising our margins by identifying operational
efficiencies, streamlining processes and exploring
innovative value-added solutions.
MINING PRODUCTIVITY
7,0 3 7,3 mt
focused management
interventions
6 331 347
Adaptability to market dynamics: Our ability to
swiftly adjust our strategies and operations in
response to changing market conditions is critical.
By staying agile, we effectively mitigate risks.
OUTLOOK FOR FY24
113 3 119 bscf
NG investments delivering
positive results
Sasol BEE ordinary shares (%)
Our strategic response is based on three pillars
to navigate the challenging landscape and ensure
our resilience.
LIQUID FUELS SALES
51 3 54 mm bbl
consistent fuels demand
SASOL INTEGRATED REPORT 2023
29
CHEMICALS AMERICA SALES
0 3 5% higher
improved operational performance
and market conditions
CHEMICALS EURASIA SALES
-5 to 5%
continued challenging
macroeconomic environment
