SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 68
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
STRENGTHEN OUR FOUNDATION
INTERNATIONAL CHEMICALS continued
Overview of the year
SAFETY IS A TOP PRIORITY
SAFETY OF OUR PEOPLE
In the past few years, amid a prolonged industry
downturn, we also faced significant challenges
internally. As a result, we underperformed compared
with our peers. These challenges included recent
investment returns falling short of expectations; several
assets encountering operational reliability issues; and
a regional organisational structure that led to
duplication of functions, roles, and systems, resulting
in higher overhead costs and inefficiencies.
In response, we developed and began implementing a
new strategy to build a stronger, more resilient
foundation with an immediate focus on resetting the
business, including changing go-to-market strategies;
taking decisive action on assets across Italy, Germany
and the United States; and streamlining our
organisation to drive greater cost discipline through
standardised processes and increased collaboration.
The impacts of our actions are reflected in our FY25
results, including a significant increase in EBITDA
year-on-year, putting us on track to create a healthy
and sustainable business.
PERFORMANCE
Chemicals America
Total US$ turnover decreased by 5% impacted by a reduction in volumes offset by
a 5% increase in sales basket price (US$/ton) driven by a stronger market price of
ethylene in Base Chemicals and our value-over-volume strategy in differentiated
chemicals.
In February, various functions in our Brunsbüttel, Germany site celebrated
25 years without a recordable incident.
Throughout the year, we invested in and implemented new technologies and
processes to enhance incident management, streamline reporting and
improve risk management and assurances across all sites. Additionally, we
automated the tracking of leading and lagging safety indicators for each
region, enhancing the ability to share learnings and foster a safer, healthier
work environment for all employees.
For more detail refer to pages 101 – 102.
Chemicals Eurasia
Adjusted EBITDA
contribution 2025
Total US$ turnover increased by 4% resulting from higher prices, while sales volumes
slightly decreased. The average sales basket price (US$/ton) for the financial year was
8% higher compared to the prior period supported by our ongoing strategic sales
initiatives and stronger Palm Kernel Oil pricing.
Sales volumes for the year were 10% lower than the prior year mostly due to
unplanned outages. Sales volumes in the fourth quarter increased 33%, higher
compared to the previous quarter mainly in Base Chemicals with both the East
Cracker and Louisiana Integrated Polyethylene joint venture cracker exceeding
nameplate capacity in the quarter and all other Base Chemicals' units exceeding
the previous quarter sales volumes.
FY25 Adjusted EBITDA % increased from 9% to 13% year-over-year driven by
mainly the above mentioned improved prices, following our value-over-volume
strategy, cost savings initiatives and insurance proceeds partially compensating
losses related to the East Cracker fire.
In FY25, we saw improvements in injury case rates and injury severity rates,
along with a reduction in the number of major process safety incidents. At the
beginning of FY25, we reorganised our Safety, Health and Environmental (SHE)
and Risk structure into a global organisation; with a split focus in tactical SHE
at a regional level and strategic focus on risk, enablement, and process safety
at a global level.
Sales volumes for the year are 4% lower than the prior year, driven by our deliberate
value-over-volume strategy, the mothballing of the alkylphenol plant in Q2 FY25 and
the ongoing weak economic environment. Similarly, sales volumes in the fourth
quarter were 4% lower compared to the previous quarter.
64%
Chemicals America
36%
Chemicals Eurasia
SASOL INTEGRATED REPORT 2025
FY25 Adjusted EBITDA % increased from 5% to 6% year-over-year driven mainly
higher unit margins, partly offset by lower sales volumes and higher cost associated
with the ongoing modern Enterprise Resource Planning transformation project in the
Northern Hemisphere (with the go-live of the SAP S4/Hana pilot in Italy in April FY25)
partly offset by cost-saving initiatives.
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