Progress on our strategy
Our refined value-based strategy will be implemented in phases. In the short term, our focus is on deleveraging the balance sheet, operationalising the LCCP, enhancing our foundation businesses to extract further value, returning increased value to our shareholders and stakeholders and evaluating opportunities for organic and inorganic growth based on our capital allocation framework. Since November 2017, we have already taken some steps to advance our strategic ambitions and are actively working on the business readiness activities for the LCCP.
Ensuring engagement and growth of all our employees
During the year we progressed our culture journey. Living our values, embedding our aspirational culture and realising our vision are vital to enable value creation for all our stakeholders. Themes contained in our aspirational culture include resilience, collaboration and diversity. By collectively embracing and living our aspirational culture we are confident that we are building a resilient organisation.
Driving our aspirational culture
- Committed to achieving our goal of zero harm
- Develop, empower and retain values-driven, high-performing employees
- Motivating our employees through innovation and digitalisation to promote high performance
- Diversity is our strength and we promote diversity across our organisation
Grow speciality chemicals in select, attractive end market segments
Our chemicals business is well positioned to generate value-based growth through our competitive products, application know-how and close customer relations in the global chemical market.
Progress during the year
- Streamlining the Performance Chemicals portfolio with focus on Organics, Waxes, and Advanced Materials
- Developing incremental growth options in key end-market applications
- Advancement of our business readiness for near-term growth from LCCP and expansion of China surfactants
Our 50% joint venture HDPE plant with Ineos in United States achieved beneficial operation.
Pursue progressive, disciplined growth in exploration and production
Upstream makes a critical contribution to Sasol as a sustainable provider of coal and gas feedstocks to enable our South African operations to drive substantial value from our integrated businesses.
In Mozambique, the Production Sharing Agreement (PSA) Phase 1 and Phase 2 drilling activities have been completed. In total, 11 wells were drilled comprising of seven oil wells and four gas wells
An update on our strategy is:
- Mozambique continues to be a long term strategic partner to develop and produce gas to market
- PSA Phase 1 gas prioritised for the development of a gas-to-power plant in Mozambique
- Optimisation (size, phasing, market outlook) in progress
- Options for monetisation of surplus PSA gas to be jointly developed with our partners
- Further and focused exploration prioritised in the near term; development to follow demand to maximise shared value and minimise market risk to Sasol and partners
- Low entry cost operations in focused areas in West Africa being evaluated to create portfolio of options for execution in the line with balance sheet flexibility
Grow liquid fuels retail footprint in Southern Africa
Our energy business is highly cash generative and thrives on an integrated competitive cost advantage. We are driven by a strong technical and operational heritage. We intend to maintain a competitive edge in marketing our energy products.
Progress during the year
- Organic growth continues with 12 new sites in 2018 and 15 planned for 2019
- Progressing value-accretive acquisitions of super-dealers
- Continue to evaluate major acquisition opportunities, guided by capital allocation framework
During the year we opened 12 new retail convenience centres in South Africa