Sasol Integrated Report 2024 - Book - Page 67
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
SASOL CHEMICALS BUSINESS continued
ADVANCED MATERIALS, BASE CHEMICALS, ESSENTIAL CARE CHEMICALS AND PERFORMANCE SOLUTIONS
continued
PERFORMANCE
SAFETY
SAFETY OF OUR PEOPLE
Chemicals experienced an increase in the number of lost workday cases (many
related to falls and trips), as well as fires, explosions, and releases (FERs) in FY24.
We thoroughly investigated the instances, and successfully implemented those
learnings by year’s end.
In March 2024 we experienced a fire in our East Cracker unit at our Lake Charles site.
There were no injuries and no offsite impacts. We expect restoration efforts to be
complete in the first half of FY25.
Sasol Chemicals began to see improved performance in the second half of the year.
In February, our Terranova plant in Italy achieved one million injury-free working
hours. Many months of preparation and collaboration resulted in prestigious
industry certifications being awarded to our Africa business for Health and Safety,
Environmental and quality management. These certifications aid in continual
improvements in business performance.
Throughout the year, we invested in and installed new technology that will enable
better incident management, efficient reporting, and risk and assurance
assessments for all sites. Additionally, the tracking of safety indicators will soon be
automated, and the system will provide improved opportunities to share learnings
and create a safer, healthier work environment for employees.
Overview of the year
The first half of the fiscal year was challenging, characterised by subdued volumes and margins
which was in line with trends observed across the chemical industry. This period was marked
by economic pressures that constrained performance and numerous actions were taken
to mitigate the impact on our profitability and cash flow.
We began to see improved performance in the second half of the year. Particularly notable
was the performance of our differentiated products, which exhibited robust margin expansion.
In contrast, our commodity segments, especially in Europe, continued to grapple with depressed
demand and elevated gas costs, which adversely impacted margins.
Despite these improvements, the results for the fiscal year did not meet our expectations,
underscoring the need for swift and decisive actions to improve our performance. Our ongoing
commitment to operational excellence and strategic initiatives is aimed at addressing
these challenges and strengthening our market position.
CHEMICALS AFRICA
CHEMICALS EURASIA
Sales volumes were 2% higher than previous year.
This was due primarily to a phase shutdown at our
Secunda Operations compared to a total shutdown
last year.
Sales volumes were 3% higher than FY23,
reflecting depressed demand that remains
significantly below historical levels due to a
weak economic environment in both Europe
and China. Production rates at several units
continue to be managed proactively in
response to the lower demand and to avoid
inventory build.
Improved production and supply chain
performance over the second half of this year
led to 8% higher sales volumes in the fourth
quarter over last year.
The average sales basket price was 13% lower
than FY23 due to lower oil prices and weaker
global demand.
CHEMICALS AMERICAS
In the Americas, sales volumes were 3% higher
than last year, due in large part to the fire at the
Ziegler alcohol unit last year that resulted in lower
sales. Sales volumes for Essential Care Chemicals
and Advanced Materials therefore increased in
FY24 compared to FY23.
Mainly due to lower sales in Base Chemicals
from planned and unplanned outages, sales
volumes in the fourth quarter decreased compared
to last year. Additionally, while the average
utilisation rate for the Louisiana Integrated
Polyethylene LLC (LIP) JV Cracker in FY24 was at
nameplate capacity, the East cracker was down
due to ongoing repairs after the March 2024 fire.
The East cracker is expected to be back online in
the first half of FY25. Production rates at several
other units continue to be managed proactively
in response to the lower demand and to manage
inventory levels.
The average sales basket price was 14% lower than
last year, driven by a combination of lower oil,
feedstock and energy prices, changes in product
mix and continued weak demand. While prices did
slightly increase in the fourth quarter, due
primarily to increases in the ethylene margin,
overall margins and associated profitability remain
under pressure.
SASOL INTEGRATED REPORT 2024
65
The average sales basket price was 19% lower
than FY23, reflecting the decrease in feedstock
and energy prices in Europe after the recordhigh levels resulting from the war in the
Ukraine. Q4 FY24 prices were 6% higher than
Q3 FY24, mainly driven by selling more
differentiated products.
