Enhancing our robust foundation
Our existing operations are highly cash generative and cost competitive. We are focused on extracting further value through asset reviews, digitalisation and seeking opportunities to increase volumes, while ensuring safe and sustainable operations.
Building on our excellent capabilities of managing complex value chains
Our focus is to continue extracting greater value from our existing foundation businesses and remain competitive. We will become a more resilient company by improving our safety and operational performance and become more reliable, efficient and effective.
- Operational excellence
- Continuous Improvement (CI) to strengthen our cost position and improve robustness through the cycle
Consolidating our operations so as to remain fit-for-the-future
We are making steady progress with our asset review process. Several non strategic assets have been identified for possible disposal or reduced shareholding.
- Asset review process underpinned by drive to improve
- 75% of asset reviews completed with the majority of assets to be retained and some identified for growth
- Strategic fit review of all assets now complete
- Identified divestments >US$1 bn net asset value
- Shareholding in Malaysian assets sold to PETRONAS
- Active marketing commenced on Canadian shale gas assets
To remain relevant, Sasol will move away from periodic, large scale top-down interventions to a Continuous Improvement (CI) approach which will ensure that we remain competitive at an oil price of $40/bbl. This approach will focus on both effectiveness and efficiency improvements, while ensuring safe and reliable operations. Digitalisation will be a key enabler for our CI programme and a central digital office was successfully launched in July 2018.
- Continued competitiveness at a $40/bbl oil price
- CI target will have a holistic approach across all value drivers:
- Gross margin, cash fixed costs and invested capital
- Identified 50% value enhancing opportunities, positioning us well to achieve 2022 target:
- Customer engagement solutions to improve our sales margins
- First quartile functional performance benchmarking
- Improving the reliability and margins in energy value chain
- Digitalisation positioned as a value enabler across all businesses globally
- Focus on asset health management, efficient operations and customer engagement
EMBRACING TECHNOLOGY TO ENHANCE OUR COMPETITIVENESS AND UNLOCK VALUE
We believe that more effective use of digital technology will create value in a broad range of applications. We pursue opportunities to enhance safety and productivity, improve customer experience, improve operational efficiency as well as plant reliability through predictive maintenance. By embracing technology to enhance our competitiveness, we are targeting more than US$300 million in value by 2022.
Data is now recognised as a key asset for Sasol, with digital success completely dependent on our ability to effectively use our data. The core focus of digital at a high level is how we make our customers’ experience more rewarding and how we ensure that operations become effective and efficient in producing the right product at the right time at the best possible cost. A number of Micro-Battles have already kicked off. Two of these are the ongoing Digital Catalyst (customer experience improvement) and Asset Health Monitoring (operation optimisation and reliability) programmes.