Sasol Limited (SSL) 16 Aug 212021 Q4 Earnings call transcript

Company Profile

Participants

Tiffany Sydow	Vice President, Investor Relations.
Fleetwood Grobler	President and Chief Executive Officer
Paul Victor	Chief Financial Officer
Brad Griffith	Executive Vice President-Chemicals

Call transcript

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Operator

Good day and a very warm welcome to our Financial Year 2021 Annual Results Call. Thank you for joining today. I hope that you and your families are staying safe. I am joined today by Paul Victor, our Chief Financial Officer; and members of my Group Executives.

Our results for the period ending 30 June 2021 were published on our website earlier this morning.

this we of salient highlight purposes only. features the conference will call, the For is a a underpinned and XXXX the year Financial by despite destructive events significant U.S. and operational strong the headwinds pandemic of prolonged weather in performance, business overall backdrop, were mere Against ago, and twelve where quite is performance phenomenal. given months we this a our not met our many it. only short-term exceeded We of targets, but indeed,

to our progress sheet deleveraged pathway a with transformation in programs is wins lays Sasol balance Sasol. Our strong future early foundation accretable to This X.X. notable

strategy Next bottom we month, will at look people, health forward our triple our profit. Capital outcomes line Markets to Day, sharing planning and our and our safety, planets we our our pleased is how on workplaces, all for deliver several I of which on The robust long-term we on improvements in uninterrupted our interventions in safety protocols operations. highest that indices, key while our supported COVID-XX maintained employees am priority. practices resulted and well-being and

We to slow that also way a save and lives the pandemic, truly accelerated vaccination drive remains support efforts economy the best recovery. in the global view

continue people programs. invest across focus and we communities as in by Our the rands of social our evidenced impact billions stakeholders extends to

share Day. We Capital improved and a upcoming with will our urgency business climate full path our our to to change at Markets forward sustainability have significantly a we deliver we on and chart commitment targets ambitions are acting to decarbonizes

table. program. liquidity completely a For both delivered our now our target operational performance objectives exceeding value needs with above divestment issue taken sheet This off asset manage financial and strong right year a our well by was XXXX, business results strategy-led and for underpinned expectations. met through We balance the surpassed the

the operating improve to highlight was of innovative down during calendar chemicals with balance normalized Sasol were which some up course to Mining Mozambique performances, transformation shut down is our by achievement. we To will our shift metrics. despite full Secunda the our higher. cash X% productivity a X.X due In after now our the taking benefiting and of a weather experienced system, business business consideration. X% were introduction used going a ago some forward. operation volumes challenges are U.S. flows significantly substantially planning, was ramping events on from our This year. the mainly strong our to is restore investment huge volumes up Our program compared achieved into during sales operational year grade X% sheet now operational higher The year. adverse productivity production X%

now and and cracker delivering legacy commercial As resumed of U.S. units country Key on with signed the of agreements Sasol operational are core Africa. allows have joint our as cracker. transformation LyondellBasell is The project Alumina a our at the strategy. Mozambique additional to pleased campaign supply the and specialty this ownership and units, the three month. to gas the reminder, to earlier commitments I for access and exploration been and LCCP in has well business density South infill drilling namely we and and higher continue and seasoned PSA that Mozambique JV control two unit ramping to well. to place, central is venture units say remains to am all up Sasol to Guerbet feedstock us full our the low have ethane running the polyethylene the chemicals Ziegler, that rates the ethane

year stakeholders and draw balance this our We operating was to a very for March billion the and In the underpinned that been sheet needed a closing, foundation competitive that model program divestment is future a a we deliver positive positioned XXXX, to divestments we centricity. customer we and for which asset by now XXXX strong program close. focused allows have financial returns. we Our portfolio deleveraged Sasol, have believe successful. has agility, to will a decision-making all as faster and the US$X.X value now advanced enhanced conclude new for Since shift we greater of

and Our response will RX.X cost up the now year margin stabilized plan in Sasol XXXX. maintenance of our billion business ramp savings $XX we CapEx cash X.X and gross uplift RX program, further financial of XX fixed to and implemented transformation between up has to up delivering billion billion billion,

value. focused Capital Looking ahead, you Day, our hear our to can deliver next month to strategy and Markets at on resilient expect more

I gas on theme key a greenhouse we pathways. Customer for our emission innovating are better purpose as and their supplier. clarity world. our other centricity Our Moreover, and reduction customer and by the and for our support year. patience for us shareholders Sasol continued a delivery stakeholders their past global more that targets thank again, during our to base to revised is trust guided

are do we for believe on over sound now to Paul discuss shareholders in the to hand into our performance we which better of competitive business for the be future. for will the planet to people. period detail. and grateful for footing now truly and will are now returns more deliver our all the a financial for We I I

Paul Victor

and good and day, Thank you, ladies gentlemen. Fleetwood,

our remarkable faced. position XXXX turnaround the Our a we financial despite financial underpin results headwinds in

most acceptable we a an non-cash underlying cash to level. XXXX, massive increased through free billion, asset was which really deleveraged This taking balance spoke our which with time to includes enough refinery the rand XX% In the and up The were improvement net generate immediately were sheet the the price improvement EBITDA improve XXXX. chain. Synref the remeasurement to measures about notably Wax impairment our divestments the steps I our flow. to in speaks clear performance value of our to financial position. cash during to to aimed self fundamental by X% and Our by new increased flows RXX.X items and the this to and reduce business by Earnings of trend during debt to XX% year year-on-year adjustments, the dollar impacted

We in spite. against delivered have ambitious this plan

times, was below balance of significant of X.X Our times, at reporting sheet. our the covenant a well net debt-to-EBITDA of receipt reflecting the our period end X

the be has which up delivered gearing reporting at year ramped savings net to sustainable on US$X.X XXXX XX achieving from is market Our X.X and a in fixed rights all at management target our plan billion decreased XX% Furthermore, announced cost continued the again period. X.X% lower transformation billion March year US$X real Normalized reflecting executing without financial terms in deliver EBITDA discipline We program costs exceeded around June, in is were Sasol financial XXX% issue. cash improvements. billion US$X our XXXX. to to significantly for in and XXXX our response will early results, for

completed financial even cash cash impact workforce a price Sasol and will generative, fixed our We the for on our a oil transition low X.X cost initiative will future cost and that include positive base benefits of in competitive, our have year process therefore have sustainably and profitable ensure this environment. XXXX. highly company's the

continue in and combination SA LCCP, a despite contribution restrictions the continued stronger to key sales economic ore sales resulting a markets this the tight levels due and to our delivered Our cash and Africa. On weather-related of reduced. framework business capital of a at This business be easing strong this of our detail risk Capital average complete Africa capital expenditure profitability taken contribution our XXX% consequence mining, progress, In while plan the the the of our in volumes due cash there higher still in from a the stage higher and most the will a is prolonged is of Board this Day prudent following the chemicals, divestments a were combination integrity export step and to be a fuels weather supply RXX and liquid higher until is dividend are is More of the and upcoming prices to a strong prices events on from with summary, debt the higher and pandemic. price Markets now the of contributor strength sales to September to the basis, XXXX. significant the in lockdown U.S. global benefited in improved The billion and flow meaningful energy future. was business Africa people a has ensuring Despite uncertainty. demand demand, shared is across South suspension in exo events at challenges a on up gas the In U.S. COVID-XX of continue the period which ramping allocation supply to at of the assets. Southern of in chain a expected capital higher decision from ongoing maintaining recovery and to in our a resulted Eurasia flows safety volumes in focus

changing terms prioritize blue chip to Sydow. facilitated our of X.X open of our and US$X environment our year Sasol the which and to XXXX. billion debt Tiffany we Relations balance levels times by call believe and debt very levels EBITDA flexibility in credit In financial now execute the well positioned our net Officer, a for restore We will ever ultimately financial you status. now for you. we end the the in much. a the very investment year strategy deleveraging macroeconomic our questions, grade have and future sustaining Thank We metrics coming to can below Thank below to be continue Investor outlook, net and will sheet are

Tiffany Sydow

you questions will three facilitating seen, captured already on a is come questions far participants we will cover at the be name and to in. make and All try they I'll submitted. My to call. capture as afternoon. Thank then this the two to more be closing this efficient. continue Tiffany I for to to this will questions time The We Q&A session Good those, questions your afternoon. Sydow,

first centered question, the published earlier on start first this financial the business. around of we I’ll which morning. The results, directed mining which set is Paul to with up questions

cost the if with comes of are The we to - decline can was Brad, on were cost from you RXXX start Hammond. guard? $XXX expect year ton what And RXXX costs per off for to sort ton, why achieved. caused What’s XXXX? ton inflation Adrian mining three you were question mining guided F&O? you you And costs per the seeing? for expand Our can guided in financial per RXXX

Paul Victor

progress good XXX% not say, a Again, see that more so the afternoon. off the are I system. guard, Fulco full Good quoting right. guard question. of much Yes, of off your But to quarters terms will implementation in is you

up the Today, The change well. hard that was And the as progressing we improvement effectively, now envisaged. the rolled back, mines. full really we according the mostly we productivity originally implemented lagging this have to the to a see us plan, own in new of our been management is whole of internal look Fulco have has but it expectations believe change We sense financial management we behind the didn't on the all support actually we quite year. do quite labor organized when in drive

is in see as mines bit rate, in fixed productivity X.X also And Sasol is per guidance to as in And provided. of very hence year our two us only that that methods presentation, in will delivering ramp up a cash from And the that in your The are mining towards. kind cash your Fulco, contribution and our fixed Hopefully we are I've contribute we positive well coal previous you catalyst perspective initiatives against of guided to can a a achieving past in are up second We cost quite cost financial and so seriously. from today as if rates some month-on-month values earlier continuous to we this as do question. issue cost those, we mining. we both From deterioration little July, believe successful again, the cost exceeding cost of the the say, these in lower run get picked do expectation. down that believe a during productivity do it for the that a we successful answers this be addressing your our improvement you quality sub-optimal mentioned results the will was as ton. year your taking

Tiffany Sydow

around - you one the to spend. two statements both, the capital and assumptions our next And one questions, underpinning open around

being at goal only oil payments, You've your increased fuels price fuel prices fall below spend of XX rand longer that how the competitive The we yet to cost Have Group year some Did improved you XXXX? guidance second the manage range? your your now for XXXX? And That the CapEx financial to facility. slipped in in does lower changed CapEx CapEx into term is around the your question impair you comes below to towards be did Patricot. [Indiscernible] five And your oil of comes PPE. payment with year PP from the bring should assumptions Thanks spend, from capital expect to Or the price efficiency. of the oil end assumption? reconcile segment X% Henri value you

Paul Victor

you only the When look we impairments, receive the from IHS question at Mack take Thank which a your own of that the is rand Wood facility. see X the we we life of playing would And as up rand side effectively and look right the in amount deck and exchange first. terms bank’s do years - we rate, Taking of prices dollar a you oil full the the the on your at Gerhard. to end due, know, we on we up combination of in look out. of, our analysis the most our notably prices of of and useful

So, oil fulfill negative the on over end – NPV need those automated in the terms the impact. years saw longer decks, significantly latter have year a oil requirements in beginning use assumptions. to of do price, prices period, the Those basis beyond have to price, which a terms consistently term of a cost five we oil based a higher had decrease on that in C but years the

were to rate rates. which exchange and from the cycle, perspective, And in guess, exchange rand RXX strengthening your view However, to a cause significant was can this is dollar a by understand rand the dollar dropping significant to of in in I resulted much RXX impact significant your assess approach rand ultimately commentary probably, previous did I was instance, the see these always strengthened a unfortunately reversed. compared of in booked we on payments. rand sometimes conservative. factors of range debt how real And us it between those the that exchange I some average, of that the how are where far, our a we very dollar booking and you we RXX. was the argue, think in and indicated you caution Maybe look must impairment, we The of hard rate on NPVs. combination how period the most such saw and might the terms always booking RXX say, rand in and through the implement applied a I of rate impairments really back impact. two

are realistically that between that we're that just. we assumption, terms of individually conservative that assessment plastics impairment but the long-term auditors in long-term our and the when this we about assumptions, we at and our we've of overly conservative and the the look own was was strength believe of So, used performed do assessment also not the

do at of the $XX assessments in take have our second your ensure ambition being but that point, and sustainability we this competitiveness cost the have period to $XX terms our that breakeven, to objective barrel, maintain also to to account we terms into cost further of the beyond In objectives. meet future to yes, we

Although asset value used of they do the those present kind of of weigh net significantly currently. kind values are value or out of the quilter, on not

more or such ensure as levels. finish the but cost these see objectives are Capital factor. profitability Markets mentioned year tax in capital to Henri, with to is future on don't so, play as we And objectives here capital, Henri’s our of that question, the also I've as in plan some what spend as sustenance at mixed you our with bag breakeven going uptake and at the and you factors forward. money the all or its have as Day, again, for of we of there still we impact it’s every terms So terms the kind other that of to has you projects deferred will carbon such the yes, of of that's refer which in all But

number provided. because back to that's any delayed on those than year, line normalize no kind we've it this, of the that U.S. I before. lower us previously Hopefully, is will a happening of bring The the rate about combination guidance we in shutdown. and Henri. in didn't simple of seen we we the other over flow but those the year capital, it's There ultimately, with things the at had the this of a seen your question, that answer different also be some cracker. every shutdown for you if year-on-year, is And think East kind quite

Tiffany Sydow

Thank you, Chris could new mining. mines? has Fleetwood, achieve how of the from could X.X portion these at long-term performance. productivity explain the lower impact if is actually the leads please? said on from Paul. The drilling increasing And A second and had price issues that? bought second mining. the When answer you confident comes And I years is potential around from question positive What question to How the operational volumes lot can a driver R&B. production was depends questions you ask first been key are the for meaningful of next Steve you campaign theme The you gas around and cost. comes That Sasol question behind you materialized assumption? that to The number never now Nicholson of gas [Indiscernible]. improved on about Mozambique?

Fleetwood Grobler

Thank you, so Chris. much.

you of with drilling terms the in me Let campaign. start

rig because postpone drilling to commissioned was and our have the well already And we We operators not of and we to the in planned in campaign COVID with pandemic through drilling started FY exploration infill them keep PPA idle this Mozambique, of most during when was terms to in good we country. our and So, team XXXX-XXXX. we pandemic it the have the had to gas drill execute had in country. Mozambique, it fuel COVID outside

now facility, flow remobilized that and has and be means, restored. in deliver PPA that of can more that field processing the as it have We our delivering lines open we up the all get to been us the fuel will the means gas think infill to help drilling restore the to would

that gas. we've impact so, indicated on we modeling outlook volume into would account And as an that base be our in the taken of there of

today, here the the and get sit Now, output would as normalizing and that's program back has we restated the drilling campaign believe quickly field. we from the that into we gas

So, caused that actually now It that's the campaign posted in main driver from the drilling was we for to it is blip. the by COVID reasons when delay restored. due and

the a to look So on positive was, had is mines question costs. mines at Gerhard has that when the not the comment we asking, the impact

to when so, increase Fulco productivity. that system, will be when we at it which And is we the calendar a system, able full look means operating XX/X, we

started line Now because a what shift a you first has us now, taken been not have small converted Fulco logistics. of the it February This we all speak to system. in has this to collieries longer, task, five the mining January, is as we at implement change year, all to

going. You need to management get the change

weekend way mine productivity You the time need for of on the week and XX/Xbasis, weekends. that instead over your reinject product improvement really just to operate over you

already X,XXX when system now look us So, pre-invest results we of implementing of periods the and that this of the targeting. at the result additional of Fulco us also we had labor now through That at as then high while topic is on at I seen which quality. a output per terms mine very X,XXX to to are that muted shift to that longer. go think taken I believe the help Fulco has our impact And continuous level. ratable mining get flow we the need to coal the we've just of implementation, in We those good - we're to tonnes will we

that deal have Now, an issue is coal quality with. to we

speak into of mitigate issues. - to quality the a sections sources even that some is collieries, teams areas hard ways can we look five have we coal and And quality of we where be to very there derived from experienced coal are volume. where really are We as reposition those. in know the have the be maybe on some in would And two it better better course, working of quality and at other coal of to those quality specifically

of redirect. of take able And mitigate time out next would or are that we but it's mentioned. it at that to we of months But the collieries to so, year that I will those quality couple take with a being issue only thereafter, two dealing the bit and that not a

Tiffany Sydow

gas on with Herbert and are a Thank asset I’ll the are both read that for and Canada. please? The Canadian you, ask Fleetwood. got CapEx? where division at that. altogether, What are is the I Investec. on from divestment Canadian Paul, you them realized and OpEx We've two was what question they the questions we impact one of on assets? to disposal asset And the price the answer Kharivhe can secondly,

Paul Victor

from easier say of a asset all, think, but it’s divestment all, delighted saga side our an end. if first, know, maybe, to this really which brings definitely this the I whole one, with I we quite I

do sales just Montney. think look In the and I West remove from about others terms this the our regard. guarantees over performance that or basically kind portion as But round in the was such investments, that of effectively divestment shouldn't effectively that the so company albeit asset you I requirements be for or terms corporate, price, underestimated if quite received from of we million and guarantees, lot in your of $XX some it onerous on for the contingencies, also think which a African that of

going OpEx. on outlook the been that for environment to seen to capital on XX you've taken terms provide not we've say are In it’s means have terms purpose going the there our into your band, expenditure we or in second forecast, that any exposure divestment I of that any operation operating or matter. billion modeled not specific year no when the billion items on assets of account provide question, to have on CapEx, But already capital safe Canada ask last to in we for details in am that to that that or guidance to process, our those XX due

Tiffany Sydow

Thank transformation X.X you, response the around program. Paul. A Sasol plan question and

Within think being benefits savings, should what financial the one as in we next and working of from billion of $X.X year? source therefore elements EBITDA of XXXXrealized year and the FY XXXX right capital reversing

Fleetwood Grobler

Thank you. Thank you.

there are to up elements think billion. I three there make US$X.X the

to respect water that Of of capital, with that So working once. – a be million that the about was $XXX was tranche realized. that the the low line with we

that going would think I forward, would target we of our against be, look at So, it XX%.

would deviations was gross and go that margin or comprise costs up US$X.X that the billion. cash being And from So fixed risk down level. the basically

Tiffany Sydow

Thank you, Fleetwood.

back this some ask are the section. to two on questions going questions to few through. that Moving balance of coming performance am I in Paul sheet to

with net from its in in six Board given stock the current trading consider of about to reinstating back soon given first this five persist, then could category? achieving And grade cap ability value from the category buybacks spot dividends Adrian how perhaps to current prices again therefore same reinstate rating SBG. credit another one The we Hammond around a to asset spot share as investment near prices the if Sasol outlook, CapEx the dividend influence below back market question and dividends buy the of breakeven could instead entire pay the years how at is does the our in future

Paul Victor

the between are I I do two. different differently Becky, they separately, do let the and think me - all because afternoon. to questions Good answers again, too

when grade, company determine just cost. other feed let's two are the pursuing I’ve So basically because about media creates - that we that at myself some key We of investment talk on investment at our is grade even Sasol impression or all kind that exit grade S&P investment factors.

its at we So cash gearing flexible, that being those you and your negative it’s different its is of kind exposure then can its cash other makes jurisdictions and factors are it EBITDA are own to-date, assets free that or flow your which But industry-specific, the it kind of that kind are your unless in measures country-specific nothing in very assets quite quite sense. which metrics quite and two or long and operate to one kind really very generative of moves as or about do levels such of different important industries. Sasol

instances take So, health sure and that safely will of applicable pursue that and sustainably good the that just the organization metrics robustness, we is assets of we a always company that, will governance, tweak our to health balance sheet kind realizes grade our from and making we that's that investment that's as because comes it do, as group those investment do words, think per grade and I per to pursuing and our which se. that cannot when is But important peer can that is well industry-wise, much quite so we all in country-wise at we there cost. pursue only

those. virtue industry the may of and grade, investment cannot change control country, then, measures indicate not investment really it. been by may the to in we our we be grade, we So initially with exposure or own line - up It's in but our of criteria a so situation the fundamentals

will at grade going forward. that eventually combine day. I where and Hopefully, investment get is will grade just So, just of these end you factors we able investment really that align will one we to harmony way all the hopefully in be look this and managing make all sure that's to

framework, you the able not of these triggers, dividend, It's Markets say necessarily will Day. balance or a in in by figures if present a there terms we levels our to its for we've Capital can account to So, to the what at to hit basis, of a a take and kind sheet the that I the of allows new Board play. actual clarity a the to balance you kind communicated those down. capital levels sheet - when say, that, And debt which to paying Markets the will into changing pay allocation get give we our to so Capital those lot trigger But where will yet, recommend balance approval. sense dividend the a will good think to into must. come of be we you environment, debt quite and will account, I of the is afford our work a on market pay Sasol you to dividend dividend overall levels figures And grade done, at not really had sustainable dividend. to will achievement we be starts of into Day, not the it, investment criteria a need our position, to the industry the in considered be provide pay kind Board for set of, will to a

point a allocation into make to second paying if step you trade-off we trade-off to we see shares. want differentiating one our say our shares, is, good or the in dividend capital that buyback minimum I dividend dividend. of differentiate framework in do and you really back think will will very we capital up considerations of to is of allocation where Again, the And take that And where we account. question. those buying terms a or do of a The need factors between where

specific there Day, specifically we question. believe the Markets is a do Thank get once both. I also Becky, So, that you Capital framework this to to

distribute kind that the day of at shareholders, to and the at levers achieve is look to sustainable a capital value of the all framework Thanks. the possible objective. there, must work intention on think I we to basis

Tiffany Sydow

dividend. And questions combine Two I'll more Paul, them. around

quickly Do payments the net and than as gearing we dividend for to below UBS. have been less in as at XXXX. billion debt possibly it has Henri from half $X see one billion first $XX to first The both of restart

share peer question suffering declaring companies from for direction holders? project been I it’s think Second are long why [Indiscernible] dividends, At

Paul Victor

Two good much. questions. very Thank you

So, we think in the for meet your one, first that is, your I have question it, and can go I net don't a Henri. the maybe think way No, to about requirements. you gearing debt kind

of a I so process from level debt is you EBITDA covenant $XX actual a high. think us It can to if today metric, your a down goes level. very net times may because for debt X.X important you expose oil is negative and and have

us the asset mind of to for are kind this think of the need the all that that the And of in will But actually - - the you levels pay debt sustained bank gearing covenants open in fact indicated So, for negatively in by flows ultimately, well as impacted as covenant as a in the to us is impairments level. I and ultimately cash be dividend important that Gerhard terms of absolute important kind debt earlier. business level, really this. for and within can a equally a is whether generate have that of we

about. that's our I what is So, think thinking all

specifically but point, back So let I going to think don't the this on gearing decider. come be I will us is think or

what Board the more think and levels the will on course, are dividend. of to in take the declaring before need Of kind specific kind dividend, terms a debt flow, triggers the look cash of but kind - to I levels all factors want a of at a around decision of

term some But of our investors point quite of get I it's just do balance kind of valued sheet second think the to to step off that again, taken haven't the know is Yes, longer that risk. think dividend. kind it The flowing this. delever important I first is we a nicely into

runrates But look over sheet current dividend, things still sitting the details We shareholders that the do it's onboard. XX believe for with it do are a long we down. believe wait levels off good do We months. the net our And and catalyst can shareholders promising to debt to XX I need our share those at to incentivize debt don't too the let’s and at hence you through have hopefully, levels still be the balance get next to vulnerable because at are cycle. and

Tiffany Sydow

questions things And from to Or financial year to question flagged expect X% is instead the similar longer business Do poor the concern? theme can coal coal there question That less all XXXX, around And pan the coal XXXX. gas out second Adrian not year it feedstock more in hindrance the year-on-year, fuels a oneself [Indiscernible]. Hammond. feed If be this comes from as expect be outlook term our to financial Thank and Is theme. over to we or production that rise? issues in you is, two quality you how about offset with a comes moving around to gas? your due you volumes Paul. lower likely similar

Fleetwood Grobler

I'll again. Adrian. much, so you Thank start

coal questions I think I've address I’ve couple first them. started answered to the issue of the in

impacted volumes of the yes, be gas. would by the quantity So, synthesis

and or think some synthesis coal via to facility our have you either Now, regas. via coming about gas gasification into

side, time. oil drivers on two can this coal to coal that we've and campaign we've the driving gas to productivity But is ascribe but that collieries a So why can out prudent, valid offset it's And two maybe the means approach not our that get for you cold deteriorated do to the on addressed out every get and address I drilling we for will in not the gas, that's the can't think also that started we we've that synthesis the coal, properly, quality. commence reasons improve we feel more that we've these touched to natural why amount mostly I've to to necessarily issue normalize quality ton away flagged this the which what of of it’s does this sections once say, say, that that and very it's you got to if in that coal all And if that of quality a - is and to with a of and the we our that gas therefore that infill - question is, quantities the yes, that I reduction what answer the that that not have don't future conservative staying of availability live a mentioned. system, poorer, run in you taken is and to your into that. of that's as we same areas get we coal coal impact impacts the we sometimes The availability gas well. to hydrocarbon as relook and think that Secunda, as content ones. a with we've higher the new same and on quality levels because with go will but then into have the put thing, out where coal navigate quality these volume is gone of but we coal reserves question at risk focus gas, as has the from the in to that lower or quality ash coal better, and run type only lever lower it sometimes only of we not at for longer synthesis the coal got we of If term this through

that to this of part coal say is need always It can't a optimally for once the reservoir the all. I coal. mine as we quality So, base

Tiffany Sydow

Thank you, Fleetwood.

expect In a normalizes Another guidance think Dmitry question prices. than do Commodity market you has XXXX. Could What provide to more color? and around we prices rebalances. better you in chemical reach come the from higher supply as chemical QX commodity prices correction commodity XXXX, chemical the with could moderate Jefferies. Ivanov than please be

Fleetwood Grobler

much, Thank Okay. so you Dmitry.

we ethylene a pound never after the big of also ethylene So, spot supply the ethylene give the when very and the fortunate or rather it’s ask ,merchant weigh ethylene, period. we came was you per prices had on storm, of let to $X.XX the essence, storm, normalized was prices whilst pound. we shutdown we year after running an storm. Arctic short here, and It the called, that the just just merchant how Arctic to run transpired after Arctic me demand storm and At very $X.XX earlier in soon cracker, I'm are very that during traded U.S. Arctic the impact our in $X.XX, to prices the in in ethylene what but spike actually due - this seen on Brad had cracker in cracker back strong very, that to receding storm to was position our things period, going constrained around commercial the about also a and could system – period up and as out of example

we to So this would forward. Brad, Brad believe pricing on But be please. also and question more come let be that's in in prevalent ask me going what that the weigh

Brad Griffith

Fleetwood and Thanks, things. Yes.

involves Sorry, speaking. I'm seem I to Think while need didn’t moving - [Indiscernible] you'll

Sorry. described it Yes, you I Thank you. think, Fleetwood, well.

$XX this we oil nothing what saw we range, reduction. the we're are in the think be prices a of so but QX, in staying I is $XX prior significant prices to that, to seeing buildup in more what expecting with to

Fleetwood Grobler

also are one between some So, that now impact you in shut in the so bit reduction what if to playing in we where that, volumes lower a course, things there that of operations there also and they’ve output that. integrated is the fuels our volumes lower. expect The two of And also the that feedstock driving volumes around would Chemicals, $XX, then have all Africa, is is through availability slightly chemicals are indicated Sasol session. to down $XX we've be

lower the the lower output. So that's basically Africa, reason for volume chemicals

Tiffany Sydow

from two million around business political and in overall at hub companies on Thank to comes in to and from $XXX carbon in was gas why year How expand Sashank your business lack we in you, paid think our you should EBITDA Fleetwood. prices And Lanka. Comer. clearly your contributions million that last out fuels comes the can in later. you hob of much the the is cash chemicals cost leverage this assume Alex hot how to questions Can the performance around all read EBITDA three notice complete was order tax one. from people. What relative question EBITDA talk segment year segment, in about to go next the this that the looking the Can outlook through of different category of peak? I $XXX I'll set and this chemicals for is so spot And XXXX and to in Adrian Hammond. financial increased that from XXXXwas you higher financial fuel from coming

Paul Victor

Sashank. very questions. good Hello, All

quite impacted our contribution to North the positively Chemicals expected kind factors positive of seen. the a It unprecedented American was by chemical of in indicated, ultimately really the that of was, prices as EBITDA that we’ve due of alignment was the So, of Brad kind business prices.

probably was to of down. sitting chemical that kind financial prices, this month prices not So, in but continue and the softness it the will million $XX is there as the that price say in see expected will you've I to this we average question per remainder be of say EBITDA on $XX the would also going four here. we million being for seen from definitely quarter expected some of still that year, runrate

We American results. to some margin form LCCP’s reflect terms just are in terms going North say contractment. past is of results in of we of the in the separately there the not that So, this

in impact we on quite just more will itself our year. I business. monthly needless we XX in into it's we the year-on-year, a days, our so that than the take runrates be basically, American outlook basis eight So, have broadly, account on to and will for say anticipate that, that for indicated still one as But profitability be think or will over to the - have healthy cracker the down North that will East

fits of the of we think contribution decent side, expect margin into then of year Northeast account anticipate of during terms so the in in in Asia, a don't our to up or you by per and for performance ton of decent will se fact, I for kind ramp that the to for more we month-on-month we kind volumes the kind also pricing we of specialty very chemicals the with XXXX. normalizing provide for shutdown, asset base of and occur outlook year anticipate further that polyethylene, $X,XXX the BC per plants kind X on really coming $X,XXX with a EBITDA around kind running the care specialty a the But year-on-year North America, annualize specialty but financial up business. do that the that

see in want want that in leverage second lack - I not very half we mistaken, materially fuels in million, check first terms RXXX the business in towards, increased terms our of chemicals Tomorrow, in million and if the cost one. did on carbon is so can of and And a to and round number fuel higher basically And half second about that Alex. also just the very - December. first sure and we just between of gas I'm good give cost rate the was of the half the half. this RXXX these then, that it taxes, terms cash you cash or say that make business, In prices, performance to one. the why run specific

that that total cost, account take ultimately you higher versus center your half look If say. into must at full a for the in that I impact on cost, had second year will you half first

big I the also a instabilities Sasol and being will the the for we half do performance we resulted some to in higher half. for had in more X.X for of I But at continuation expect versus year. second cost We XXXX higher normalized inflation cost do those the both even the and during so issues second ultimately forecast the the forthcoming say us financial reasons follow quality that year maintenance, very basis, coal two If the on for for year half-on-half. XXXX, versus and cost are expect look that the major probably financial a half one robust sectors on financial XXXX

that. So there said terms shouldn't in of be anything

Tiffany Sydow

up strategy some moving you Thank our for our targets. into questions sustainability around and

the some solution a you technology expand the in from legislation. we Can have as you CapEx similar including to provided to mentioned tax in the carbon FT on expect gross can between terms of can initial on in reduction is, the well hydrogen production That sustainable all in and topic you fuels revision fuel. You a the in And us think a versus of expect comes CapEx what Adrian. earlier I question of your phase Sashank. ESG-related basement that - this? your second factor your clean chemicals, us And positioning guidance ESG does update from and targets then, expectations around

Fleetwood Grobler

you Okay. much. very Thank

legislation the when think we’ll tomorrow on I question, will the with tax part start more we Adrian’s engage. draft we carbon details with deal

time. into really technology is gas expanded the like we've its positioned liquids terms ability monetize the of So, FT gas our to at positioning to our technology in fuels of

a produce and sources offering sustainable would are chemicals. and to green is using carbon Tropsch unavoidable we position is a Fischer able technology say, fuels gas hydrogen So, that to that classified optimized green I aviation as or

our model focus to positioned percentage bring sense, Similarly, what Day. is But principle play green existing we green sustainable biomass, our a be space a Markets on granular we fuel. that this more the are renewable sustainable focusing will really area being hydrogen is as And would state that to also on we if well assets Capital with Tropsch on and So fuels. Fischer a can of aviation of can on. that portion we of which that give take as aviation biomass well the in is the attribution introduce at detail into

more what of I we as mean strategy would Markets that our we Day. Capital part with color, much at part. that's So as give And said at

your CapEx does in including ESG-related we the have hydrogen? up all we which does have have that to complete XXXX guidance if PSA, Now, It the our you indicated ask capital include that working quality the aspects eight we that is factor question, does CapEx by So our renewal. projects been XXXX. replacing any of at suspense feedstock include

only On a got the we've specification SOX abatement side, is area here. that the

entail to we and to able hope what of the We parts are we give what all to see implement and to capital this be to type that technical up quite that. that year will the that to be have that the a calendar address conclude also of projects clear are by end we of will delineation of will solutions that working able

get that clear of is up are that guidance? parcel clean on part question part strategy we Yes, was billion $XX on, the XXXX. fuels fuels last and key to that your Now, to see $XX the capital of to billion

will And more so, that our indexing. at Markets Capital we Day is Much included in detail guidance. that provide also

a So, Markets will have now and Capital color XXXX and as at options expect we of would ambitions we as increase XXXX give take indicate the we or our which ambition? ambition Day, well to a can with Markets at will will the pathways - Capital our we have Day. both to the our that we greenhouse indicated will communicate I reduction gas revision, of significant our we by Sashank, in have Yes, that we

Tiffany Sydow

Gerhard. boiler about comply are your One more the What you How question, they emission now? you Thank you regulator deductions limits, you, FSG Fleetwood. Could Can emissions? the will specific how more the be replace be implemented? cost? it with from will if solutions? And cannot much

Fleetwood Grobler

just is Gerhard. the point touched you, Thank on. I’ve This

that remember, to environment, of So, are we have and with take with exploring. options fisheries, options. along we a we also them couple government are into of And department really the forestry currently engaging

solution beneficiation We typical matters. a is SOX coal to address have,

process. As all you of know that if stones of the the you SOX coal, take rocks would and out coming reduce out your you the

option one that come to address and say, publicly that. almost working with to is to working And we the looking as not looking make that ready of I and that we also we're those But two SOX are department visible, solutions also how issues because understanding those support outcomes we're would with up tackle the we like other are greenhouse at. could yet at and we're So, gas. options

shared be to that, more when ready will detail are we much So do Gerhard.

Tiffany Sydow

Thank Two around you, expectancy Secunda. the questions Fleetwood. life for

Sasol. then, and So you do question likelihood a you conclude reducing have of XXXX unbundle be is And in how how I using do this think And do to that section, [Indiscernible] Secunda your feedstock Comer. so this still there you much do these unit. XXXX think to expectancy you'll how life will at you if energy Alex process coal you another from think ESG from as assume

Paul Victor

Two great questions.

will that useful And keep that There coal us last said to got in expectancy. past a will see So, it. the your how us next also into doing that but we profile ultimately currently coal hence, of we've play in to replace are XXXX that XXXXs. we currently, work will lot years, XX life to out with XX have raise effectively the ultimately the the guide what is

for of to really the coal to and be your point replaced we in volumes into the business you of us introduce. in input So, believe ultimately, will fact because your prefer potentially reach useful terms that at change is its green time, feedstock the end life in this we do that there hence Alex, by reserve, reduce as reason the no tail

that find just into facts make make life we I phase which there XXXX useful Secunda be want to once all really on the we continue for think operate terms also quite in a of very period. parts saying and and exceed of reason beyond. But I'm facts now, to change and reasonable by if the XXXX that useful the carefully may think I with expectance life get feedstock do no that also not shorter kind the that to a table the life dealing there change you decision exclude moving beyond a to for reason to perform, given to And on is or I is and once our of beyond the very we'll based we and to that, informed us consider longer. we still to disposal, there even are need XXXX. either

terms our I just in play and unbundling the done of doing I for of really South - what's very not of am terms have considered, of not may it's but that Africa have kind unbundle. so I will I the does landscape, any understand value in premature. think think very, energy coal and be in it into any it your I think of saying gas how unbundling offer? to will to terms your And it think business work take do and the reason on you position model? that others In be to it what I premature business,

chain. I past be of will what of our feature. that for value We coal of years, the and our into coal the we contributes think consider still different next And components business that integrated will have seen in the couple overall part

what We kind kind cost will quite sudden of and you that coal means have our of at comes, coal a be that, not know of change of really we basically about sensible all to it. restructuring intake that

and any to time. the that. at of parts the value doesn't other one in in past. we these evaluate from other ways value asset believe risk continuously that CTL see point into a our best. a as can current progress time, business, in what the integrated business going what from asset of But fit do restructure that forms, continuously will prove is best to shareholders evaluate fits and or point efficiency that we perspective energy the still a this considered that a doesn't of management course, mean portfolio best that's perspective, we not in coal chain potentially we It that cost have significant It Of and positioning the forward, that we asset perspective have at will

Tiffany Sydow

JV with Thank and the you, what as LyondellBasell. with therefore around is met KPIs Were with all shareholders LyondellBasell JV from question this considered McGillan Paul. Grant fairly A Sasol And question are advantageous And as X.X Have around XXXX there at its more well the in financial and program. redundancies after the for from Fleetwood you the concluded second Direction. XXX reduction Project your the that indicated year to headcount program? [Indiscernible]?

Fleetwood Grobler

Thank Grant’s with Maybe question. you. Thank you. start

look in the at a ability that of with to marketer and joint course operator, venture we LyondellBasell and polyethylene. concluded also a we offers at prudent when received well-established LyondellBasell of prudent be time, many we motivated So, have the that of

that joint weigh our the of venture we with into of All our and the LyondellBasell. that a are time. the LyondellBasell been decision those very passed, had as I happy months the And have at project - that believe operator in met all of and expectations we marketer partner with six of products

start and Looking FY the Gerhard through will the final structures are in can you Gerhard, basically realizing that question as the the XXXX. we concluding imagine, at asked, benefits all program

say, don't through show the of in for that be parcel suffice billion year. for is the in number state our our steady And of also there. But RX in workforce XXXX. books. But in cost on this and we period that numbers, full FY that will big FY full rand want numbers this to benefit the at time. would only fixed most XXXX the will any part manifest our conclude run in point the A that when that up that ramp and of then in is specific our year state to now of transition in benefits will FY, of will our that So part steady I saving terms talk cash that concluded

So, yes, there is XXXX. there is more to come, and it will in settle FY

Tiffany Sydow

Fleetwood. you, Thank

on set Another balance of questions sheet.

its the Our a expects cost that company balance emphasis reducing huge its performance, sheet it's on very clear deleveraging funding. by of

at any And of rate think the right Given which intelligence that at plans company in? as great get intelligence. the they would from the filed? to then bottom another when or bonds, refinance from Bottom set comes question realistically be, low And would Edward matures should next such expect for fund Paul I for Michael to company year we raise ESG green does instruments John have it

Paul Victor

engage achieved the rates ensure deal sub-investment we've progress rates market Yes. the quite with by continue even response bond the plan. I those a questions issuance on and think lot that being of of a it that you've and I your made X.X to the crisis we of first. back at grades can supported had Sasol with wasn't our of with we kind obtained. that and Michael, favorably And been easy kind

the from grade a So market was positive. capital quite perspective

kind margins in in we that of paid. the that effectively of that coming saw through rates terms we In terms the and of progress

comes the And to The is this in at from needs still next there refinanced take to do instruments. kind to a now, off be because our so that a is we that that, of more time. mix to year debt good to by a that the And moment don't there that's action in quicker, to want the action bond do So of We We that believe time. kind in recycle say no of to it's our perspective expected bonds. of we some the that debate going is really up rate carries our is your round that rate point for X.X%. that is, do question reason it any know markets, you market. trigger further are not debt about

I think process. on you are more later paying in the so

run – So honor let we out. got bond going that a to

have that resources cash flows. and We to settle through our cash intention bond full

not all date. will kind you buy that bond precisely we do the issuance So of

ARTF debt is reminder with can maturity kind stage, that need or think forward, really debt that's further of probably at ARTF Tom, later the as partners term see with reengaging that we potentially consider how the bank is to you well going we our see to the deals in a I bank to facility. future music. also market but reshape There as

our into up, to for picking consider I this rate of time there plays seen be point at market, want early markets some settle. the in by in the and which us enough believe it debt to U.S., the We gives start in cycle the expected is because in doing our consistent we've favor. in that past will the more that capital as value still not do interest meaningfully to options going probably of we so take of we believe a paper time, in that terms issuer So, when time are that to really future. we don't rather kind any go

other shift the old will issuance company that when capital borrowing to terms the the failing bond think structures clearly to is kind find specified terms advance markets in the business of I debt in raise carbon it in of market of fundamentally We to. the and going commits place, that vanilla discussion question, grants will of ultimately of difficult the that takes think In green very we actually had companies managing KPIs Board is that terms forward. capital a footprint the I we in were in the criteria just good quite average at one-off which, different donations than ensuring rights a cost of But magically in very kind just is criteria on are ESG. kind instruments need me the it’s very there a last green week, also be clear consider second Edward really of the deal , let with absolutely, now this. There magical is reduce because and our that funding low. no that terms

It new vanilla bonds, might doesn't clear The sample of our in amplified significantly capital. suites old very of our be paper sufficient limited It to So, is, doesn't commitments cost own formal we all of makes a of the and the with ESG be ESG we various the will issue just our that right first in going even quite basis, needs able on at perspective, association of consider that as uptake market by the to a that think will the the and will from when take the to component big that to margins and vanilla to not for our with be unwritten very difference assessment. a there. paper priority kind a those say support a the go way forward. but the are grants, potential of access strong And kind be they I of But course, stored measures. form is donations we receive. largest kind options of be

We also will finance. asset-based consider

penalties some you can well. are the also we very course, if requirements incentives, Of Usually, as don't those consider have much to are with of And but associated it. associated KPIs with are asset-based kind those there achieve those there specific finance. open ESG

be will the that you open future or what whether more business as asset-based and possible doing the rates both, and what this be terms. will at But asset will will of they But financing. to on forward are you I depending as eventually be on So, alter financing to you level. the be KPIs the instrument, committed think achieve Whether well also kind to are be financing of the corporate music. going you in some we very a will

Tiffany Sydow

you Paul. Thank

of sheet this. with remaining last conclude questions on you balance line question think one the I

business been asset and capability debt be levels this comes You for in you year. from coming cash and that on will forward have from high an sales, Are issue guys this flows Matthew. absolute concerned pretty cash point that

Paul Victor

of plan ask response We or a the this that to but the be going non-sustainable good And measures. such response quite crisis I Matthew, of addressing to going operating Sasol we we did cash we kind sustainable X.X to save issued because of be we're we is the it's need kind fundamentally flow initiative mostly where go think in. cash, to – program say a when try cash the an model initiative and and immediate was hard. question, for you plan, opposed driven of as a company, know or was liquidity probably kind that mixture as measures the

from for kind plan, where benefit now X.X is embedded the reorganization is already is that a July So of the It's run has of there and us response crisis sun find know ourselves very we as setting rate onwards. the on giving we the from perspective Sasol much us a already kind place. taken

of debt. billion But achieved hedging. and levels a we thing around financial the we debt budget, as ensures us ultimately decision to did our That's did transition we to that does That's at if smooth - other cash a structure levels say of you that environment, XXXX do for prices well to all amount of onto and the in cash still further communicated when we debt. our as the already keep down as go that service we of why $X the see The amount our flows of those certain option why to absolute as certain been hit below is, selling company. forward that very and us vulnerable low be may effectively sheet a that that give flow has side operating instruments only So those mix the and ensure that put made $XX is to it the a product. it the covered coming on the it of two us high probability balance paying

delivering effectively pay are still we debt of that levels sure comfortable those both down play to in no factors got as that our and well reason our our we've controllable further such out into capital favor. hedged will flows now we these factors working if hopefully So can And at sufficient levels that make of be their will to business volumes, we cost, cash kind generated capital believe with. consistently are to

kind think has off going line the think I’ve a understand predicting appreciate. it. really financially very I I it's But fully market of got then our something negative bottom prevent any from XXXX been maybe that the and much impact and Thanks.

Tiffany Sydow

structures you, Paul, South cost And the logistical more insurance I one? Both from by season one start you if – American think if the Thank first you then and high Herbert Paul. business. maybe of if you And at export for for Investec. the with the to think chemicals for Are two you ask you Herbert. is I are please hurricane us remind affected from I questions here the Fleetwood, could from Kharivhe Africa?

Fleetwood Grobler

Thanks, Thanks. Yes. Herbert.

route. from most we Remember, and course, we impacted also export that of But affected Europe. We from have were containers increases We these in increase And rates. are rates Asia here U.S. to impact. think seen within there to liquid of container folks, to Asia was these do polypropylene that not being Asia. have into take we things yes, absorbed it have in we hopefully, of I significant is would that freight we rates. seen of our once But our managed it and but normalize, moderation cost through a see On sales channel. that an

of So a to it's cost we factor don't sales. our believe

Paul Victor

hurricane impact season us. really here. getting Maybe, of It's kind to is

maybe we our the we wind do we policy are an but I believe covered might have to of broadly. from it it, that if insurance assets, if please have perspective, but to So storm doesn't, So pray you missed think answer I all

clear just about So let be that. me

and we policy, the level between is think have and for have the I as winds level will damages certain Windstorm $XXX insurance cover of Obviously, that a by million. $XXX damaged terms that's caused Albeit round such side. to million of Coverage the Atlantic that. kind us on do In about

interruption production kind the American side, assets On are the same of on principles. North the

up after to the for as then insurance to you assets, African first that you damage such an the sixty ultimately, You exposed sixty effectively $X means self-insured. are then days to any which in. And are mechanism covers assertive to - days billion billion. South effectively, assurance And kicks it $X.X

days then So extensive A really with has have a coverage. We triple outage broad insurers. a you sixty do ensure beyond very it can and

being So is that quite party your but risk hopefully risk believe event question answers those out Herby. that – counterparty the eventuality do of we the sound, in

Tiffany Sydow

more although management last disposal around can much have achieved these we there of has after deep the congratulate management, asset capital this and coming Questions and questions I Both than it’s been question centered are an in It's I expected remuneration. on of the that think there think down and items balance program. aggressive cut through in that, if one throwback call. slowed is And stronger sheet, no is questions close much were And such LTI are is program, on respective that sketch targets? included performance system if and be have policy determined they included Capital. XXXX from Sasol’s CapEx? these [Indiscernible] in Two Should made future Sasol’s achieving Aaron back the targets. is other be the should cuts LTI been compromised it managed by this. in been This John benefits, caught the from at has that I in the

Fleetwood Grobler

you you. thank one put corrections statements two in like I your to John, question. Thank for to you that made. perspective or your just

this incentive capital of savings. targets cost for and First all, short-term year's had savings

want a do back Now take term short-term per meters going to and company sustainable was crisis plan the on it at measures level certain two forward. and thinking to a had LTI it below the to I the referred is second last the just keep when business and savings not long liquid water to company to, get we response to was year that savings. you

and markets year, that. through would have you X.X we last target achieve If December comprehensive in we recall a why of assessment the can taken we Sasol said

we in based Risk the we explained of terms great peer of It how at on maintenance aspects on have look a was of the approach So CapEx maintenance detail. benchmark thorough assessments to in up as Sasol achieved not basis, and have it clear programs with proper taken sense. come into we That benchmark properly that was what risk account is that that. now from industry a

you we any CapEx CapEx similar I assurance that the the we at have year on So, we do that spend, want to when look maintenance. that give at

is fuels. of in line. also had previous We thin pit at reflective that. prior didn't you years, that, is It before or major If year It shutdown stop in a look more less last year. the the the We in have

we have very So going or forward. unnecessary around a to circumspect cut do going believe that not that I maintenance. in spend I all result with And for this delivered we've been that rather was believe that context necessary approach

you So, to context. I perspective just leave with want that and

Tiffany Sydow

Thank you, Thank Paul. you very Fleetwood. much,

questions that further coming are no platform. in have We user

your close So with time for this being call. afternoon. will much that Thank said, we this you very

Fleetwood Grobler

in Thank Tiffany you much, for thank and Thank everyone safe. you participated call. Until so that we stay see again, this you.

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