Sasol Integrated Report 2023 - Book - Page 54
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
SASOL CHEMICALS AT A GLANCE // Growing with our unique chemistry
While the year was difficult, the
value we have unlocked progressing
our Sasol 2.0 initiatives has made us a
more resilient business able to withstand
volatile times and better positioned to
deliver value to all of our stakeholders
over the long term.
STRATEGIC FOCUS
Sasol Chemicals’ priorities for the year
ahead reflect our long-term optimism
for the business, balanced with short-term
realism regarding the difficult market
conditions that we anticipate lasting at
least through the first half of the next
financial year.
Brad Griffith // Executive Vice President: Chemicals Business
SALIENT FEATURES
Solid safety performance
Continue to emphasise process safety in our
operating facilities and personal safety wherever
our work takes place.
Soft demand in most markets due to global economic conditions
Continued supply chain challenges and high energy and
feedstock costs
Unlock cash flow through operational, supply
chain and commercial excellence, building on
the progress made in the second half of the year.
Maintain a relentless focus on managing fixed
costs, with every employee acting with an
owner’s mindset.
Strong operating results in the United States in the second half
of the financial year following operational setbacks in first half
Production rates adjusted proactively in response to lower
demand and to avoid inventory build
Continuously improve our business by
simplifying, standardising and digitising our
processes and implementing a state-of-the art
enterprise resource planning system.
Overview
The results for Sasol Chemicals reflected challenges posed by a combination
of difficult market conditions and internal setbacks that we are successfully
addressing. The first half of the year was particularly challenging, but we are
encouraged by second half improvements in areas within our control, particularly
in operational excellence and cash management.
Advance our sustainability ambitions, focusing
in the near term on integrating renewable
electricity into our operations and becoming
increasingly energy efficient, and on integrating
more low-carbon feedstocks into our supply
chain to the extent enabled by market demand.
The global external environment featured an economic slowdown, decreasing
consumer tolerance for inflationary prices resulting in reduced demand, increased
energy and feedstock prices, and lingering supply chain difficulties. Although
overall demand and supply chain constraints began to improve in the last few
months of the fiscal year, prices, unit margins and demand remained below
historical levels.
Build a culture of inclusivity and belonging.
Internally, we also experienced operational issues in the United States and South
Africa that impacted our ability to supply products to customers. These also
improved in the last few months of the year.
SASOL INTEGRATED REPORT 2023
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