SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 22
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S STATEMENT continued
“WE REGARD SAFETY AS A CRUCIAL LEADERSHIP MATTER”
On the balance sheet, we also made progress on our key
objective to deleverage and reduce risk with net debt (excluding
leases) closing the year at US$3,7 billion at 30 June 2025.
We have maintained a strong liquidity position with healthy cash
buffers and maintained our hedging programme for both oil and
the rand/dollar exchange rate. Overall, we’ve made positive
strides on our foundation business moving into FY26 – and we
plan to build on this performance through the next financial year.
Capital Markets Day unpacking our Strategy
In May 2025 we shared our strategy with the market.
Our strategy is now firmly anchored on two pillars:
1
STRENGTHEN OUR FOUNDATION
2
GROW AND TRANSFORM
Evolving Sasol into a sustainable, future-ready business.
The strategy is based on our evolved understanding of the
challenges ahead and is supported by robust solutions and
credible, executable plans that we are already implementing. We
have confronted our challenges head-on and Team Sasol is fully
committed to this transformative journey.
Sasol has a solid foundation with the potential to generate
enhanced value. The first pillar focuses on strengthening this
foundation. In Southern Africa, this entails restoring the
performance of our foundation business. We have made
significant progress in improving coal quality, stabilising gasifier
availability, and embedding cost discipline. Our integrated quality
management systems, and a renewed focus on operational
reliability are already delivering measurable improvements. The
Destoning Project is progressing well and is on track to reach
beneficial operation in the first half of FY26. These interventions
are expected to restore production to over 7,4 million tons and
reduce our breakeven oil price to US$50/bbl by FY28.
Internationally, we are resetting our Chemicals business with a
clear focus on profitability and resilience. Through decisive
portfolio actions, cost optimisation, and a shift to a value-driven
operating model, we are on track to achieve an EBITDA margin of
over 15% by FY28.
Our streamlined structure, enhanced customer
focus, and targeted innovation are laying the
foundation for long-term competitiveness.
We are also growing and transforming Sasol by building new,
sustainable value streams. We are focusing on delivering value,
reducing our carbon intensity and addressing the terminal value
concerns of the Southern Africa business. Our optimised
Emission Reduction Roadmap (ERR) is a breakthrough element
of our strategy – we remain committed to a 30% GHG reduction
target by 2030 and aim to achieve this in a value accretive way
without compromising production. This will be done within our
capital allocation framework and guidance provided in May 2025.
This alignment of environmental and economic value is
testament to Sasol’s innovation and pragmatism.
The optimised ERR is targeting 2 GW of renewable energy
by 2030. In FY25 an additional 160MW was secured through power
purchase agreements (PPA), bringing a total of approximately
920 MW renewable energy online in South Africa by 2030. This not
only reduces emissions, but strengthens our earnings, creates
jobs, preserves value and positions us as a credible player in South
Africa’s evolving power market. I am pleased that we have made a
bold move in participating in growing the market of renewable
energy electrons to SMMEs through Ampli Energy, our partnership
with Discovery Green.
Sasol is expanding the window for South Africa’s transition to
LNG. We have already extended the gas production plateau to
FY28 through further investments in our Mozambique
operations and during FY25 we announced a methane rich gas
bridging solution that will extend the window to FY30, giving
South Africa enough time to transition to LNG. Sasol is also
collaborating with Eskom to accelerate the development of a
gas-to-power solution that provides the anchor demand to
aggregate LNG. In parallel, we are advancing sustainable fuels,
including renewable diesel and sustainable aviation fuel,
supported by strategic partnerships and technology leadership.
Financially, we are targeting R64 to R71 billion in EBITDA by FY28,
driven largely by self-help measures. Our capital allocation is
focused, our cost base is structurally lower, and we are on track
to reduce net debt to below US$3 billion by FY28. These actions
will enable us to reinstate dividends and invest in future growth
with confidence.
SASOL INTEGRATED REPORT 2025
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