SSL - Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the presentation of Sasol Limited's Annual Results for Financial Year 2022. Thank you for joining us today.

Our speakers today are Fleetwood Grobler, President and CEO of Sasol and Hanré Rossouw, Sasol's Chief Financial Officer. In today's presentation, Fleetwood will cover the business performance for the financial year, which also includes an update of our ESG progress and milestones. The financial performance will be covered in more detail by Hanré with Fleetwood concluding with a brief update on our future Sasol aspiration.

an which ask commences have our questions then session, Q&A immediately will opportunity your to in You afterwards.

contains on Before refer we in it slide. this summarized look have are in you to regarding This the at to our presentation. statements begin, disclaimer which made I'd that important information like your a time. forward-looking Please is own

Fleetwood Grobler

recently, the divestment the significantly reinstatement our shareholders. today, our And the for completed dividends to issue. torrential devastating South last affected remain year, everyone, Africa to X this war rights response of impacted to KwaZulu-Natal XXXX upheaval accelerated South program. need to on In balance life. is pleased we XX financial day, strengthen Inflation results in export toll has challenges Ukraine in outbreak globe this our its short-term entering more both ability is our the caused soaring We we abroad. while The recording still Notwithstanding chain asset and future April successful across strategy measures in our six recessionary In multiple markets, targets, on enormous Sasol and in to meeting aspirations. to in we energy of The operations. concentrated were COVID sheet rising. the years, the the and our largely through and welcome products concerns are months have I unrest July without a on disruptions. well-executed of focused global this global adjusting faced and backdrop, Good announce the Africa, human supply progress now our period, with civil update. the significantly major am disrupted rainstorms economy our and world In late, along

people's stepped as express a continued significant years, framed and continued As guidance line sincere recent profit. appreciation and team its in in to also our the to years, I want the take And planet we Sasol for sustainable my and strides challenging support. thank operating I to people, of out Sasol environment. of strategy delivered past diligence, and and competitive the Board a bottom for triple our support focus future Sasol. we commitment In more

our considering Sasol Sound of framework, future goals. ESG Maintaining five fundamental first our I by integral of loss performance colleagues 'XX. year start this is presentation of review is the my and the tragic to of within to safe this delivery a operations focus, in particularly will the high-level financial primary year. providing business half

good rest demonstrated work-related social the the never safety economies We and pursuit unequivocal in safely for will ensure to operate. each where our day. be we harm. ways return our positively intent in a eliminate of regions support to force We strive the many employees zero home our to incidents communities our Furthermore, and we in is impact

while aspiration business strategy. decarbonization future XXXX XXXX. accelerating our was transitioning is through two our foremost Planet, our value, to grow thinking. concrete accelerate against of solutions, to towards We milestone our just ambition On industry our is that our our towards and transition As the dates, defined in plans Sasol shared the greener transition affirmed

zero our As at from a gas a up baseline net to reminder, XXXX we be XXXX emissions XX% ambition greenhouse to XXXX. target by reduction announced stepped emission our and

our in on of Africa. and energy Secunda headway South renewable the as than energy GHG in significant on portion our the XXX megawatts tranche to needs unmatched executes reduction first a making X years. are significant scale X equates is next of We This an more pathway, to XXXX Sasol of in

this profitability a last improvement we profit, year. the step change our in element achieved On

have stockpile our financial our improved and our situation. prices, our it we operational safe output further. higher South now While operations and well-being Synfuels cost our supported some unpack in will however, value challenges of coal offset report capital harm underpinned African plant were, performance. of our zero I is performance this The by in priority to people maintaining already I'm that year benefits partly a and that chains by These robust also to production. by lower pleased integrated expenditure one number of is 'XX ambition. pursuit was improvement led

unacceptable. friends is condolences loss the Hlongoane, Any to life Moses we heartfelt colleagues of Let Themba Masha, Lebogang me again the Takalani Gansen and Masilela,, Lebepe. lost, of express and our families Naidoo

Our of safety that in further on a grave improvement efforts our and safety an our saw of performance intensified focus our operation introspection second capabilities our the while the continue These deterioration concern performance source was half practices. in year, in we the strengthen safe to for a significant intervention.

rate. cases its workday rate above lost year's result, recordable downward trajectory, stood continue a marginally As last while at X.XX, our case

focus also of and are committed objective. operational discipline, leadership particular harm with deepen unturned leave I team actions to risks. to number stone on no we culture of as We zero a executive our understanding are a addressing and personally my training, pursue

XX Another among be and trend with are many can fire, ongoing need the incidents safety. with for and entrench never recognize we things, good to complacent, of other fundamentals. measure we on metric On is progress, safety explosion occurrence release all we balance, commitments making incidents. but safety and relentless process year, we great focus a This we important effort the had decreasing

measurable journey a in communities inspires we force remain With our integral contributed up corporate previous to Our better regions. royalties, South social tax country. from business billion over to being in realize is be XX strategy, jurisdiction, good operating Among innovating for taxes and XX% a examples, purpose the ZAR taxpayers our intent while benefits our largest world to year. a one socioeconomic key top for in our the few our Africa of the for we

which This up South from XX% XX.X of XX.X demonstrating was year, commitment transformation and Our last billion sustainable economic empowerment. to billion, was our based black-owned in majority ZAR on ZAR total is measured Africa. ongoing black spent procurement businesses spend

largest makes and one X.X investors development billion the Africa. of Our investment us South skills in in ZAR

are fund approximately XXX in in pipelines several and play critical Sasol our STEM remains engineering support a 'XX to and to or as positive our sustainability proud we financial and development in very In science, year continue socioeconomic role and diversity bursaries investor we universities U.S., mathematics the significant I'm workforce leading goals. the continue education, to technology, communities, undergraduate change. driving of postgraduate elementary and We alone.

well, both and partners mining Mozambique chemicals to a sectors. creation committed negotiations, with progress greenhouse power start secure assists In petroleum key people the terms over procuring are by negotiations South our amicable zero continue and to in wind real our Wage agreements is wage plans pursuit the in are gas to online of very Africa, be industrial to Providing settlement meeting X-year our independent has progressing target to Looking coming renewable solar environment. concluded reduction of will important which XXXX. we for successfully We working foundation the been ambition. The agreed working at XX% have with remain for and net XXXX Significant and increases our in state with before producers certainty our agreements. the harmonious power XXX wage have wage trade of both made Chemicals union our to megawatts of both energy our we and meeting Energy the XXXX with trade partners businesses. more ongoing. union in

plateau contributor South one This procure reduce sector to from recent be production We emissions energy initial made indicate that represents by of ambition our is supply is in operations. XXXX. well our Europe, capacity together equivalent programs renewable strong energy production procurement budget. private profile by German well on to expected activity sharing several On drilling and infill within we our to remains project annum. to Italian up to and team eventually per are will or COX The we progress megawatts quantities kilotons we of This, neutral from have and can aiming XXXX. results Africa agreement of gas with XX based X,XXX implement until towards largest progressing purchase biomass-based extend a into supply renewable to agreements existing PSA the power Brunsbüttel supply, where In assets our the South Mozambican significant of significant the optimize energy. Africa's COX renewable for entered

partnering flexibility to supply profile, pursue in pathway.We This We reduction are LNG for sheet strategy negotiation XX% have are from gas. access a This also onwards. and supply XX profile. XX to of flexibility petajoules gas our we ensures advancing adjacent term acreage we our gas on forward more a exploration to XXXX progress of provides our as step huge that is our

the the swiftly Natref XXXX. with was In aim in project repurposing for committed remain producing end we green enablers, carbon investment are hydrogen volumes options the Sasolburg, the I'm leading pleased low refinery. assessing we report to decision final in taken economy play creative other that also Africa. the towards hydrogen hydrogen green role first at Looking to a of South for a green

XXXX. pre-feasibility a transition as gas pathway of This low-cost bio-based security innovative to compliance produce country's and towards Together compliant now energy and towards will we our steam includes sustainable greenhouse introduction we end for emissions. a a of Here, have feedstock, Africa. the very also developed diesel hybrid fuels for study completed the step with fuels This South to is positive to a on us TotalEnergies, refinery a standards green partner, the have are implementing solution the meet clean concept. reduce refinery that and

the which value solution turndown of Sasol. African South a key is for coal fine of our our chain, For the boilers, cold-fired enablers achieve target one eventual to requires XXXX

solution, steam done which first our of improvements intensity the feedstocks air coal fine Chemicals lower we confirmed our solution produce of our site in recently produce feedstock, sales have which of required operations. Secunda from today our greenhouse Sasol feasibility in and to without that shutdown operations. use our fine a from boilers cannot electricity its sustainability and quality phase and We the The at more for be gas the products bid circular integrated certified Marl in Germany. coal to procure a sustainable to and in carbon renewable products enables

the achieved European Brunsbüttel bio-based our and circular have namely three and at In feedstocks. largest certification of addition, ISCC-PLUS commence of sites, we Augusta to use Marl,

just and existing partners. on activity leveraging with accelerate which way. XXXX we pleased progress with and make target the includes progress our continue to value-enhancing Overall, continue initiatives approach I'm transition towards a a our We collaborative to in approach, made,

emissions GHG a reduced lower Looking rates X% and XXXX the Council line reduction and at financial be is from due commitment. our that this our XX% Sasolburg significant the baseline. approximately some The account our emissions would mitigation compared initiatives. included the by production has This XXXX 'XX extent Secunda In our 'XX of lower divestments to from X% being our gas is progress into showing in operations. been with and greenhouse reduction to part Note of year, year account World environmental production large in to our nearly performance. the lower Business restated made to as not on divestments baseline Development impact our is Sustainable GHG protocol. baseline for Taking

in higher year Although from we expect reduction volumes production GHG emissions will existing continued improvement increase levels. with 'XX, financial

our gas well. However, these are after XXXX Notwithstanding, risk. the energy, without understand not risks implementation greenhouse implementing shadows. transition levers realized phased only reduction of boiler and gas with be will larger We renewable the reduction

potential include renewable which infrastructure, Our gas constraints mitigate impacts, are affordability. potential diligently teams from key and supply for transmission working to energy short-term the chain

environment. higher Turning greater the were with Sasol way, in levels environment. cost testing Sasol to we our now delivery model the response, operating year. effects In these past across the we pressures. of introduced flexibility continued the of our challenges our true X.X But with and faced operating collaboration combat manage impacts transformation and new operating we external multiple last to Sasol of of year, effectiveness to In the program inflation

use KwaZulu-Natal supply caused of in looked In to transport, the are loading at impacts rainstorms to shifted we and road earlier areas. by this Ukraine. from products the alternative heavy alternative some of evaluating energy the province in mitigate possible sources chemical Europe, rail where Following war the year, we

is also We by channels supply season. summer continuously to river lower to working are which and maintain chain disrupted traffic, levels River alternatives the severely Rhine this

few wars was Through changes. in a the impact the regulatory tax Most a carbon We business continue in benefited times, by to on policy following demand, operations I we which from energy business. recovery which to points stakeholders help employees these all impacted importantly, support comprehensive South impact. with This to humanitarian Africa, now The African could fuels in various disasters, COVID-XX amendments other our regime in will proposed the engage manage crisis. South to challenges to in natural demand to continue challenging our recent and our and owing Sasolburg to salient Secunda production communities significantly pandemics, chain. employees response challenges, lower report operational regarding and touch volumes post the improvements value business we and offset profitability. feedstock extended

first setbacks our Our the and year, in half are mining operations lower and last experienced productivity output to the of compared year. financial

drilling high XX% schedule. benefiting However, were XX% price. guidance prior we the associated production. divestments European and in I'm with shale U.S.-based to revenue XX%, the Wax proud challenges and and divestment year-end. have saw assets levels in second our year, the In within good cost zero volumes successful our Still we gas lower in the delivered remediation performance the in lower the gas pandemic, that making of of South Sales dilution harm ambition, restored a line stockpile due for to the Despite operational continues. to announce December to Ramco market we the CTRG half. the in In address progressing remaining largely average divisions shutdown we our as higher a productivity increase we a plan and cracker shareholding than the findings a the the improvement first is volumes in the Mozambique, campaign ramp-up from in well sales U.S., mining, our exceeding progress previous safety targeted, business our namely stronger severity completed half also business. above we delivered Chemical are with in the The half basket Canada to the Specialty Chemicals strong African indicated implementing chemicals XXXX volumes. our productivity year, East incidents. business at of this on XX% program infill Overall asset, the the completed from were safely also coal U.S. the and concluded

Mine are a targeted support levels We coal includes operations Furthermore, from is reaching including executing quality, mine, we generally quality quality move deteriorates to Secunda improved in improvement across decision performance mine section lifespan stockpile reduced case. reserves, cater production, all mines through for in healthy and initiatives. higher deployment to the productivity maintain blending, different planning over productivity This through restore are optimal working integrated to levels. the and quality models. Coal variability this of no must away as the reserves. deterioration adapt and our to optimize opportunities

key of We effectiveness strategies. longer addressing of the procurement balance operations, equipment. Secunda improve our South options of quality the as a focused our include of fuel the we strategies and through slate. a our margin the considering our to short combination and total integrated improvement quality reliability improving technical on our coal pursuing product Across chemical term African lever shutdowns are viable higher-quality may coal These and are to of

our partner Lake specialty ramp-up continuing closely to as team the is our Charles the operations, JV Louisiana international with working at in integrated our is operations. ensure of The stable units planned. JV polyethylene Looking

includes appointed Despite saw We a the impact to This I financial will all significant have over I few a more we in performance. to gas a feasible. year, a hand who operational before touch region. producers where to details. task respond supply will on Europe, will Hanré, just challenging feedstocks improvement in metrics technically share alternative in financial also could which evaluating potential team constraints

strengthened end, sheet below huge approximately of past more US$X.X well net billion years. increased earnings share Sasol, than ending ZAR our to XXX% their US$X and Our EBITDA of by share, forward dividends per the billion. resumption headline over debt thank to support a few for our billion. ZAR Core per with a shareholders the year around shareholders. XX XX increased the The supporting for and at by target is was This we patience of step XX% balance to

to by some continuously of dynamic also higher our is While and business to adapt improvement the resilience supported demonstrates a agility it prices, landscape.

in under On efforts benefited time. response detailed for hand financial X.X and over Sasol's through I to Sasol note, reporting Our the programs this hugely that now to take the Hanré period. results us have will us crisis

Hanré Rossouw

results. ladies a tempted for credit Thank I'd give to you, XXXX the Sasol It's highlights last Fleetwood, only of the privilege me to to difficult sacrifice Having years and financial briefly welcoming across good through and gentlemen. some individual the navigate over rather very for Sasol's also and waters. give all credit present the I'm though company for and the board the in morning, on to me today April, Sasol financial year. take made all Sasol thanks to dedication for performance the joined team

by business the was the Let financial volatility is overriding significant benchmark the providing many which start the with the external highly me our affecting takeaway some outcomes results the in period. environment key around detail level of in moves overview macro environment, prices. the for critical Perhaps the of to

enjoy following polyethylene, increases U.S. prices up higher, 'XX, dollar-denominated to the rate in closing XX% Brent for financial translation average impacted $XX benefit crude barrel but XX%. XX% Feedstock of and which the with were debt. by continue impacted We gas was natural per of to saw increase oil in up significant year negatively prices the our flat XX% The chemicals other the energy increasing relatively ethane the prices. remained Rand prices. We and and by

future the concerns to around term security near see of supply. gas natural in the We expect ongoing

fallout need geopolitical Locally, ongoing events the economy supply multiple forward, volatility energy rising including and uncertainty markets structural high African and the constraints, global planning. continued agility cost expect with face-to-face tight capital We South chemicals require challenges, be increased and disruptions. fiscal to from is macroeconomic business. and potential inflation responsiveness we allocation a from in Sasol and Looking chain remain our with competitive through and into factored Sasol the and X.X which unemployment These continued business committed our program. and to challenges deliver discipline

Turning to financial the results.

which future. our impacted chemicals management a in with superior in the sustainable an key, partly were Fleetwood significant by the ZAR challenges non-cash forward. I and evident of on stronger XX of tax adjustments the included above approximately and the our Chemicals the prior segment was included our in ZAR compared EBITDA Earnings profitable to segment, improvement re-measurement earlier. the just benefits disposal business, refinery strong asset The portfolio year Chemicals sale to X to a significantly the fuel in return Synfuels dividend prices, African slide, supporting We than returns committed the of relating reduce losses of year. on prior Return billion notably America X.XX items to of dividends the increased normalized XXX% seen ZAR ZAR of in as gain the diversified profitability robust have energy which group operational year compared an will financial by hedging U.S.-based of On chain derivative capital of by benefited mainly a for most recovery to cash XX% was a and impairment our increase earnings as We reversal invested WACC, as impairment previous as over These the Core a from the the for this remain business to adjustments We billion well share gain hedging well for ethylene of such performance. unrealized our which cost the XX, a final XX, deliver ZAR of basis, per covered chain represents increased hedging combination to financial in risk spoke mix. our which year South remains to allow from sheet prior integrated to on reintroduction value of short us share. billion compared includes previous X.XX This in well need profits for the profitability headline with X.X interest benefits before adjusted on and ZAR disruptions, going and our offset of period, more of supply and X.X translation losses XX%. CGU. and net and Non-cash divestments. and our per the shareholders our to ZAR aspects profit ensuring in ZAR balance as shareholders. billion the

Let turn with to me the the highlights, segmental starting now Energy business.

from higher as volumes coal and prior benefited adjusted safety negated lower combination partly following a in compared export was higher operational Mining increase Our by well resulting mentioned, EBITDA of prices, the a year. purchases. the to challenges, external in This already as as segment X%

the prices, Adjusted prior by by gas X% year, Mozambican made volumes. production progress was supported to as with good segment EBITDA as Our the drilling higher well campaign. compared up higher gas

XXX% Our margins demand. adjusted the fuel higher of crude the strong delivered compared prior year. to a volumes improved with EBITDA and prices, by back higher increasing segment oil sales performance than from benefited more refining We on

segment Africa Turning at our first disruptions, business, was in challenges the second our the well in Chemicals impacted chain products by the of sites half financial supply a affected the export as as year, which SA combination of of half. to production our

to demand, XX% supply basket in higher financial oil resulted conditions. higher sales prices average price improved year in a due the was XX% a of EBITDA. This the tighter adjusted combination global increase However, for and

by We customers. are average the and was sales offset chemicals unplanned have use lower the year. in [ph] of volumes XX% from Adjusted the downtime quarter America cracker our the seen West financial specialty the in increase more certified base This chemicals last following the price. divestments Chemicals sales by in basket of our XX%, being strong a by EBITDA for our ramp-up products segment increased as benefiting

our mentioned, to risks impact that and geopolitical our pressures effectively under to is inflationary recessionary the priority business the manage tensions, and I've ongoing increased are continue As will control. elements

mining workforce. at generally expect We In Energy year, compared as business to as we financial terms the to of 'XX, focus the in discipline the drilling In financial seeing our productivity safety guidance businesses. continue our to stronger our well our of prioritize and XXXX the we infill year start anticipate we and expect improve higher performance and volumes operational Chemicals for segment, we exploration the Gas production campaign. on benefits of

African back operational volumes barrels on a and million to improved fuels sales the million Our fuel of increase range South performance between XX liquid higher will XX demand. and

the of With to shutdown and plan volumes mining operations anticipated This in million improvement year. the productivity Secunda impact higher between of - produce X this will full includes calendar operational XX apology the X.X stability, tonnes. for September of

our expect forecast, I'm the Fleetwood market which pleased we Turning we than year, Eurasia, sales we Chemicals to experienced supply up. be competitive higher is, prior with profitable to a be share the is due program environment. improved low risk to the higher, highlighted. demand. ramp Chemicals aims X.X the price transformation Eurasia that ensure ongoing sales continues X% expected business, well to operational remain America, In X% volumes to and as some Africa to course, progress recovery performance volumes between constraints, to to to are improved which be compared to between Sasol even Lake There are XX% expected of as for sales to and have making following X% XX% in our Charles previous higher year. business Chemicals mainly year, to up volumes the to prior our we in from Chemicals

X.X in X to our is as incentives partially X.X target real X.X above of ZAR ZAR was above the and 'XX feedstock sustainable and fixed plants. guided short-term We employees compared ZAR savings, ZAR ZAR realized such billion low on cash on we to was income mere delivered fixed within increase other in alternative a detail shutdown related The introduced we as which improvement year these solutions. XX initiatives range debottlenecking maintenance year, in non-capital prior initiatives This our financial margin million. was of net by risk-based spend the of more we capital costs our will this evident expenditure billion remained Capital our capital for offset I our contain developing in XXXX performance statement, approach, expenditure year. to through terms. to higher billion a savings billion through our and cost saw as optimization ZAR allocation X% and benefit XX gross costs at well which This not capital managed such base. of cash slide. preventative our of billion next as the provide includes target Looking

Our ratio of the the mainly a our quarter was higher revenue for of working inventory for last the target, capital year, increased was of slightly capital extrapolate valuation following above up we receivables XX.X%. result If and prices. turnover as though, working financial to ratio

to are the volatility, embedding end played which has of throughout measure at over we out ratio year. the the Given capital recent the working average years, XX% turnover revisiting sustainable period and considering a more

momentum year upcoming that X.X are through in the on focus initiatives, targets on our gross financial cost and confident our strict market-driven pipeline Based further fixed the beyond. new practice ideas the best enter for and we year, we operational improvements we through maintain and strategies. to of cash current financial achieving margin continue will efforts management will the we and increasing As realizing

to prioritize license continue a safe business. returns, capital We to we operate protect ensure enhance and operations spend have our and of to that reliable our

the of in line cash higher year, expenditure previous as deferred we capital preservation to due financial year but expenditure ZAR for billion measures. Our the than guidance, XX with was capital

operations. gaining year, still drilling be planned in at Secunda line guidance. will campaign compared momentum the new slightly full capital forecast this largely sThis Looking with and our but the year, year to is transform higher the and financial of maintained capital capital for our PSA shutdown our our due to

program, costs. transform limited capital. progress we To As to our start study will greenhouse XX% more spend minus reduction we incurring date, gas was

'XX ZAR peak year Here, between financial years ZAR spend with [ph] expect for to 'XX financial forecast billion to 'XX. we in spend to XXX X

ZAR forward, key terms. in and to remain year of annual our spend The guidance. real billion capital XX XX capital XX road targets included is to billion our million between aggregate transform Going ZAR ZAR for XXXX XX up per ZAR to transformation unchanged billion this in of to maintain capital map

Our shareholder in strategy, ambitions at growing our of our is framework returns. capital delivery long-term aimed allocation shared and our XXXX climate balancing change the

on second will future, and prioritize based well transform first to support order capital and Our allocation into continue whilst balance that robust principles sheet ensure our sustainable a we dividend the operations the opportunities. portfolio. maintained X.X in of times with cover and the X.X disciplined Growth organic fashion will risk-weighted optimize then additional to HEPS. a returns a inorganic, to shareholder on compete Core returns both

ZAR complete billion contributed program success a over Our debt has and reduced significantly deleveraging proceeds. comfortable now accelerated asset to divestment of level the for This XX to net and business. delivered more is our

Our from 'XX, a being like great reduced a which support contribution aimed ratio ambition the streams better financial process start-up the the This small will fund world. progress technology to the at protection. significant in need as Sasol downside internal the challenging of believe pursued business, environment. the cover To we also economy. to innovating objectives towards establishing can and and 'XX a research and the for XXXX of made reduction now investing cover financial has technology green our our we our conclusion, reduced support expect for through stage I global would ratio hedge early to in year emphasize new throughout in In capabilities make very are we in significantly further a we have capital venture and value

a have will financial doubt focused year. but us, with more and the has much there a and value. well-executed we also is, created profitability last and little have course, dramatically group stronger There helped preserve together that do, position plans which improved macroeconomics Favorable platform. over long-term of is grow and strategy to Our

Our announce the been dividends we back over today, are the cycles. last of patient And much on of to in shareholders the proud a balance few have foregoing resumption sheet. dividends stronger

are We a maintaining to which is forward. committed sustainable dividend going

well-defined a target reduction confidence a emissions includes first greenhouse clear XXXX, and transition we XX% the transition, have in delivering which through We by full have gas levers. to self-funded XXXX

will risk this, acceptable with which shareholder growth make balance options. sense projects, Beyond we of and allocation economic return capital

the with healthy which more for to I prioritize time returns Thank the hand investments and over Fleetwood listening, risk. back you consistent for conclusion. provide and will We commensurate will impactful now are which

Fleetwood Grobler

Hanré. you, Thank

year-end conclude of to look focus results, we to the now I Sasol. the shift will future presentation As our

to plans for our zero economic In we this foundation the our we the more for net continue to reduction detail developed. XXXX accelerate target, the regard, we progress on GHG meet ambition. being studies pathways with built considered techno XXXX As achieving XXXX

demand GHG pathways for We in also decisions could instance, for the products business. that production longer see term. reductions depending on the in energy achieved transformational could, will to Our parts shifting cut production emission our slate beyond conscious fundamentally through back profiles Secunda of be XXXX, include

promising Difficulty] SAF we role apologies period. in in the think Agency, leading hydrogen are playing significant aviation sector related SAF interest opportunity. Development to or for [Technical Fischer using remains Our potential experienced, green a most ecoFT, technology we more and fuels coastal the earlier. this renewable own as also the in drop-in power is aims The decarbonize We of Tropsch Boegoebaai aviation energy Northern our of study Cape leading pathways SAF the the has the explore sincere memorandum chemicals, are agreement for hub. recent hard-to-abate which I export need to with future. seen of a export offering one we an provide through Boegoebaai to the feedstocks proven Through prefeasibility sustainable Sasol for failure

years offering The and fuel attractive me market an drop-in is SAF grow Let solution come. aviation continue. to to expected massively in is the the

to venture and We SAF feedstock Lake developing position into manufacturers firmly partners, market. and go-to-market the the short site within aircraft co-location app focus other provides with as with and opportunities expansion multiple are The sustainability in suppliers, refining attractive beyond the we partners. Charles believe But providers area agreements a that, a strategy entered collaboration to service through our term. ramp-up be multiple continues Sasol

LOTTE in net electric zero key vehicles Chemicals through are in to emergent be power the the Sasol the broader batteries for technologies We new societal of net technologies. the critical move green Technologies also support An and but to our Green electric batteries bolstering of only materials XXXX. source recent ion for towards develop are role future. the also example collaboration to research to needed this will of and and not technology capabilities vehicle where application contribute play our development likely is plans, zero a lithium Sasol towards

of through will Hanré, As mentioned new are facilitate opportunities. advancement by we the technologies start-up funding venture fund capital establishing

key on ahead, our ambition focus to looking relentless our delivering areas grow continue maintain Now where our are there accelerating several must we while to value, shared transition.

sustainability. First important to goals, fundamental our Also progress change climate ESG and long-term be foremost, to broader which our people. is our we must achieve zero harm and for will

will road our excellent to execution further XXXX on this We made of the progress year drive map. build

the profitable Sasol that to position this, goals well-invested will be value our price maximize thank ultimately watching. competitive This and shareholder concludes our lower us In business delivering we Delivery to today. Moreover, results oil volume returns. to ensure in targets sustainably our outcomes assets. you world. presentation maintaining on enable addition from and stability focused improvement I for sustainable these operational X.X and will provide of will a for Hanré

facilitate. X-minute Tiffany will Investor break We from will session, before take question-and-answer a now we Relations a with which Thank you. Sydow commence

Tiffany Sydow

morning, to Sasol's the executive And right, Tiffany, have us morning. Grobler Good related and Hanré I'll Welcome is With the the today. we name and session. management welcome rest to to session announcement in be this My session question-and-answer Rossouw. results on team. we room, financial have my Sasol Fleetwood question-and-answer of the the and facilitating the

questions box you addressed. screen, posted Your submit dial two a you dialogue to the adequately during also Please should you questions to Call right-hand via questions between side be can where see you online ensure all that switching have can Chorus are session verbalize this. the your input your be any the on question. your today. in Alternatively, and can question I'll of

for there to Excited Turning a start to at the first a ventures [indiscernible] to from start our venture you. by Sasol's Is Investments. the And question operating fund. Hanré, NBV for by initiative will over when venture? the day. target capital

Hanré Rossouw

share I excitement. Tiffany. Thanks, the

the capital to and to Sasol, outside and we us also are of I targeting I'm technology you research in going the do. nicely we that work innovate suspense. think to keep the ability gives that fund venture I think links it

and We But news governance funding that. before that end this aspects on of share launch hoping year. the hopefully the of to later We're finalizing more the are year. some that

Tiffany Sydow

Hanré. you, Thank

a please shed theme some think oil strategy, of light a the hedging sticking the that Richard given risk with I price oil share question prices Capital. financial the can Sasol recession of dividends forward on of criteria and your the could Could event at results. to next [indiscernible] well, going buybacks I global you Middleton the come in blend from down Excelsia be for what if think to go And in would as consider from we

Hanré Rossouw

Thanks, Tiffany.

management hedging. personal first allocation the I to questions think and the my just got we framework overarching aspect risk have. structure to And I've capital allergies for that both are declare

XX% had production. at the I hedging part debt risk sheet, stage, the the think say. but we it's we important hedging management aspect business. XX previous you that that over significant XXXX, hedging, ZAR had To had debt. we at a back not of given important isolation, look balance And cover then our for need in to extent, if our as around billion on And broader go the could we oil to of of excessive of

gearing for that where has a in the now drop recession. zero oil cover in change more the prices, hedging could options, cost reduction put in now rather. And a the previously, oil event we operational downside come for financial slight We the in to protection XXXX we've from significant severe also approach has for hedge now improved. or buy of a using need see also lower XX% which the just around of we global used gearing really reduced are Given the gearing, And year. a to collars,

any shareholders. And consider capital capital going on or allocation or the paying to the not And the given we allocation inorganic but at consider special to which transform dividends. balance and we're and that and returned and dividends time. buybacks circumstances will be the base capital, thereafter that buybacks that the of we through dividend, both will dividends, terms to In of cash both maintain given growth and I again, really, to consider, as then framework. to we the either excess We've mentioned, referenced extent, organic of yet will buyback happy specific guidance

Tiffany Sydow

Thanks, Hanré.

of over normal shift. per per next my understanding business I think shift is to of tonnes at X,XXX The and of 'XX. the Napier levels And reach questions expect the Victor mining targeted mining And be? when Fleetwood. going CM CM outlook moving in per LCCP Avior? will ramp-up at from What FY Wade was that to productivity the questions. from is at the to two around well capacity X,XXX to utilization second and capacity X,XXX to X,XXX direct operational per what question during LCCP, guidance these [ph] I'm Benguela you utilization constraining Seanie activity below to What global tonnes do systems comes

Fleetwood Grobler

Tiffany. you, Thank Thank Yeah. you, Wade, question. the for

on me at of attained that the And now that is we've just position was the that mining let that half second outlook So given building through productivity year-end, half our guidance first our guidance. year.

So remediation safety our I think what is program. is, all, underpinning our of targeted mining productivity first improvement

the of bedrock So mining operation. that is our

haven't it's is message the build we measured is in what indicate that sure say going the safety I that to about safety is realistic mine remediate built months primary where that We're productivity? to recovery? mixed our think your be delivery, would higher going focus safety, to going productivity. remediation numbers we're to very safety any that signals And it a I also now set the during solidified ramp-up over and last the foundation we forward, production six making clear. loath Or to And the so of but targets you from way, And from Is can so priority? can't the workforce first is before now program. it

have I it see plant As year, made targets. the ramp-up the utilization clear the far will second of as LCCP the different of to think in past the respect we that question the very with capacity sections outset, from

years the our that So course, a X period, be we attained one through will chemicals owning of result we remain is are divestment. being base of the have the we business that. which XX% - that of That through clear is that the now is portion more commodity now and ramp-up, as a are

some rectified. new is up through of go And the had in some last had anything you where reliability so as there units. unusual stable quarter, failure out won't bathtub that plus the you of issues. cracker towards equipment Also And then that And reliability the of go utilization to not sort is the the plant, start a have get in we also we a various setback the into end XX% capacity operations. has details. be I and this you

as look our the market indicated that at that we we the clearly So base as commodities for we products chemicals very far we're tracking to think the differentiated will have we X-year a parts also When the other and of part, specialty, I well. do.

And of [ph] into So ethoxylation ramp-up. for well the is very tracking a more example, for we're most Ziegler products MEG, as category, good. there, that X-year the ETO oxide, ethylene as which

So our meeting we are targets.

this completed. So year is now in that two we've

Guerbet the at the are one very into specialty X goes chemicals, going trajectory year ramp-up. think the following the Those are X-year of we moment. we're And we chemicals, also that in example, specialty a the oilfield where in and we're tracking surfactants look I So that applications. and at for alcohols

So you can't number say, one overall, put down. I must

into look results in discussions But more engage can the products track we need the give happy unpack basis, to applications. and various the that I granularity as week. am the next at You we you that to we on and

Tiffany Sydow

from ito. a and I the few can moving Adrian and questions queued via then the Corus Thank If are [indiscernible] SBG. first start we are Call. please, you, with X could that There to Hammond perhaps to on Fleetwood over move operator,

Unidentified Analyst

the morning, is Good line open.

Tiffany Sydow

Gerard can. go we ahead. Yes,

Unidentified Analyst

million I you had a got I in may. Synfuels let verbalize tonnes. that three questions, start you nice FY mean, say, that at you again. saying as X-phase you. production, if 'XX, It's that. The X.X were I Thank to, you me Thank for questions producing shutdown

us And are recast you et way the just optimal last at to million in recast needs be X performance, of of tonnes. terms that of question. detail you of timing levels low? over when guess give expect of the give FIDs weighted first LNG, below world LNG I production quality. to the you sequence facilities, the So guidance happen Russia Is then in invaded Ukraine. a the changed events do progressing. has question. you of [ph] the it procurement building again? X.X Synfuels producing the that is million construction need that additional significantly How since us coal And the more Synfuels Why And so because to Can or your Synfuels the and cetera. can of on just on

You yet increased you. long-term [ph] negative fuel your about looks your long-term you've your XX%, by assumptions producing Thank impairments? included it the in have AFS assumptions Does for that mean RAND increase additional to or those in the oil offset businesses assumptions the items remain not why impaired. reverse

Tiffany Sydow

with two if could first Gerard. questions. you Fleetwood, start you, Thank the

Fleetwood Grobler

Thank Gerard. Yeah. you,

Priscillah I and three to deal last in will and first the on with with the ask that. weigh question then. the Hanré Simon I also think can questions. I'll So two, And commence

of is all, informed we've guidance the output the first a So by number for Synfuels given of that volume areas.

as year. recovering we previous I on productivity, a with to improve. mentioned, And from trajectory First, the we are our are mining

that realistic forward. in going on up it's be see must the building volume base guidance light a so that And

And so aspect. that's the one

additional an volume Secunda. but second X in phase in shutdown, years, have as adds we That's The output aspect, a every full which is a well this rent the on shutdown as that Secunda. that's almost that limitation

goes that. stand. as LNG and the I of weigh So terms that progression ask into as Simon far the And in where also then will we

Simon me gas please. question, Priscillah over in the to to Priscillah and takes then first ask Let weigh

Simon Baloyi

Good seems we Thank you about like myself and It we the total speak time you every speak, morning. Fleetwood. shutdown.

we bottles total shutdown. in and we Secunda face remember and So do put where had to to a how day we're and demonstrating a water were of X

guides starts, guidance around taking total started should the shutdown come and have off our is So that that we 'XX, And will think that this to XXX for the related September, which I as we be know, [ph] like XX then And on much as to around we guidance less. you you gas of indeed the pushing correct will this a XX 'XX, we we total give then And until kiloton portion FY when don't XXX go year, XXth around days. of phase how Friday. have. that, campaign we back shutdown, the as coincidentally, then to sing to did Murray would

kilotons. So also does have that XXX an around to impact of XXX

X.X. remain to will So you retaining the 'XX, face taking post still a during And of total when into have X.X. should all around shutdown consideration, FY we be suppose, that between times I

Fleetwood Grobler

Priscillah? Thank you.

Priscillah Mabelane

thanks question. Hello, the you. for Thank

we to I exploration move balance because sourcing actually perhaps two. where both overview that we into we and just So as a forward as portfolio I before well LNG, an LNG. guess it's quite development our actually overall, it's important as appropriate are and projects, it's strategy of the of And give get

extension us it of are actually you've in a plateau flexibility we we overall good on on. already LNG quite seen bring at gives of development the board, maximizing working today. Earlier exploration that in to portfolio the and are of of how the we So on, terms announced few time making our projects our the yet same of progress terms of the we've At XXXX. back that

terms by right before ourselves. the of terms quite to end Again, sheet this it's year. In we are we finalize LNG, that we commercial term the important of commit targeting reach

the six months with and enable about eight start in the complete probably construction. that take will FID that with we negotiations to intense finalize or and can discussions to our so are We partners months us

with now also we've particularly are given timing discussing more the fact flexibility. got two We years that them,

would Maputo Bo [ph] forward. us we are. as contracting clarity than good we a timeline infrastructure of the Hopefully going is the gives in and we engage more you built create to of to the is What original actually molecules. for XXXX that that So like flexibility of critical where actual was some the more ensure

Hanré Rossouw

Thanks on the on and not in market. of your on course, of just on stronger increase the around could statements. detailed oil jump There's term the assumptions in the or reversal of question whether back a if I impairment to then,, impairment. in And can the nine have could prices disclosure the financial did, of we the what impairment assumptions spot tightening that oil of the note be you're led short oil on absolutely assumptions, annual

this the impact now, our be that to it's not also that, structural negative And carrying carbon could terms this could in extent, a the assumptions measure so values. had by highlighted think, on we carrying then on change assessment long that other assets, or potentially of of have proposals our to a So as that take wasn't and the a that account we've have value lived. valuation. on could I value that did tax And that into of detract that offset

of assessed to is will no got basis do assessment reverse But we've that to basis. sensitivities, the to annual and this need we the the an of on at conclusion continue impairments. point there On course,

Hanré Rossouw

tell gas Chris Hi, Thank to Hammond the where my chemical you Adrian's I many on business. the move what's some please? me in Good Great, What Germany moves hope call happening hitting you for I as ahead. markets. cost about question the Sticking Hanré. heading morning. in just would business? Germany you, in Cora pretty guidance stage thanks, Thank you. be Italy, in businesses dropped. are margins Call, line. with you mean, the instance? the again, think happens of from we that in Nicholson, see around on Pacific in European and what it or and could feedstock European Thank me. then And to Germany options can has had please we? negative, next and what look the you impact I three? Adrian, we be sure new maybe scale is that go Unfortunately, yes. line would can person Can they chemical worried from European you hear Could I'm in if - increases are that also Adrian your can

Fleetwood Grobler

one south you, Italy that. notwithstanding, to of I'm we to But for. the - got gases we've I to part different are and from Germany Brad that weigh north different, watch sources need Brad the I'm that. none Russian know, weigh in and southern number of to one ask on others a in and Africa, very gas. levers dependent going on the is you gonna Thank of Because say have Sicily. that Chris. got ask Augusta And think we to understanding on clear situations of Suffice from a to to out supported

Brad Griffith

Chris. Yes, for you happy to the do that. question, Thank

all As Fleetwood partners working reduced the to team said, of got do in task our we've gas as supply region. our the response a our on industry

start there. let's Italy, for As

on host to natural government's as to our guidance steam Evonik. network. over intending LPG station on operations we I Maril, supplies, some generation restart portfolio have the their in company we're They've our publicly placed able well First, to switch their continue the able well consumption options In of gas and that think fed in Germany those as be line fired to coal announced as with power large as by well operations. to liquid is continue the site fuel gas our they're to actually the central of be gas

as we've Brownsville, have fuel For do choices. well, options been on we we working liquid

to we steam about principle. of the community low One site principle is that unique Steam, the of things pressure provide also the heating,

continue some So we're gas be to to degree able expecting there. to to natural receive

normally the monitor some And be. of to they That's obviously government, a a I level you than at public the concern for build from storage sit we to of the whether look all higher think information continue that winter. German at they would they do what continue up that. latest if from

pressure. of terms Certainly In are margins margins. questions on your under

prices, operations at of that on If large gas are look some our put it consumers. pressure does you daily gas

on to can on. of looking showing we moderate energy with see fiscal why necessary, to XX. to will zero to that gas, at as and if customers choices that's our alternative supplies, some what making but able also would on gave we're on bit see pressure we how continue making pass was Fleetwood sources work alternative so for be much a And potentially produce. we to X%. where choices wider and earlier than That mentioned Because done we be then And the rates guidance be feedstocks, usual we we volume

Tiffany Sydow

There Brad. I'm through over back few those on online to are you, questions questions number or There theme. going operational are Thank the of coming around a gas to together. few Mozambique a platform. the cluster switch

If envisaged that That gas to point question What Good is I by Adrian level, to To addressing much why The comes six, fulfill There's thought looked historically one extended LNG XX.X from this of seven the return Simon. Hammond plateau already SASOL XXXX then SPG. volumes some first solutions so current also were what these gas? while is company CapEx transitions you the could think at we cm to been in [indiscernible] the Synfuelds has covered have hydrogen expected is bottleneck? XXXX? another on needed needs enough And if to how Salsol Mozambique declining the he that. spent? fleet? be reserves address from how at Are and is sharply and by green

Fleetwood Grobler

that. the has basically Priscilla touched we gas play addressed on think And you, Thank Mozambique. Tiffany. I in have

that, what field, this know, to operate efforts you fields to our only in continue very info campaign. look opportunities can near success I within with so So well our drilling say we good had that add and the at our would are we we

So we excited about plateau. of And that. informed that extension that the also the

to so that And that think with that can we optionality more we Africa, project. in finalizing a busy the to psi beyond South drilling. out to Mozambican basis. And got those about are they government, also of LNG about to our agreements gas you gas other I own the are country but that the assist all focus for adjacencies may options there over But create is want the excess gas station, any regard. know we've we But committed power committed. for be first be will us the have also to that of we more need do and harvesting that are key that our has think, a implementation the they of indicated And us more will gas, work would not was Moreover, in with we the be own area. the an that is opportunity bring Priscilla volume we on also energy of we fuels, And if Mozambican that only that period in and but think help the taker gas know, willing and team. to busy

So we I I summary, think good, that are. that is good where a think of

Tiffany Sydow

Thank you fleeted.

I think the next any prices, XX% prices in than price higher? that question maximum comes current around could the current NASA [indiscernible] more enforcing be challenges suggests gas the gas

Fleetwood Grobler

was situation the the think Thank I you, sound. Herbert. no

a framework price since have realistic be been finalize that We the realistic. of that would mechanism price have been with XXX the think come is per through that on we not environment, did joule. first year, today's engaging Rand this on maximum in pricing quarter of would But nurses the within maximum to to gas given Giga gas a the

test in that for not have a this would the to We is we Because time, in end, different this in we've That implement can price our will have customers. And price finalized at both I level our only are indicated will will waiting that we've have is honesty all a we agreement, in to that say proposed we rationality then price. NASA. take resolve Sasol with engaged forward that with come we customers to assess realistic we that once that like And and year with NASA. what the in haven't hold we with point they announcement within that mentioned NASA, sir. was already And agreed rest that year last with got the August. agreed framework. the we that what And engagement we've for no that so of would certainty the of pricing

Tiffany Sydow

Thank you, Fleetwood.

see productivity more unavoidable average Hubbard or impact could place? on and the this higher contingencies the same rainfall Caribbean we mining of without consequently is in this mining on Another lower than question Synfuels? from in summer, expected productivity Is

Fleetwood Grobler

question. you. Thank Yep. Thank you for that

is our think I coal supply mitigation all, one of level. stockpile our that to levers first indicated of have writable we a have

level. healthy our ability level. time, last a the this was maintain not rainy in stockpile very season year, when level that Now, the stockpile our exacerbated in started, And to

I very think got this a approach. we've different year

our maintain million above well level X.X will tonnes. stockpile the We

the a make we mining maybe will on of coal last bolster Simon two the stockpile, a by range a tonnes to of beyond. there to we and will us Synfuels or as million go increasing the that shut down two matter fact, we September, to of of so half the into that to to As end X.X, last a that now week referred the

that So we've into measures, that and the event. more got season, that that through mitigate rainy we we stockpile enter when can security

Tiffany Sydow

you, what the Thank then XX, also XX, the the outlook first question detach I and please, we in Hanré, CapEx Fleetwood. ratings, one questions is from we coming credit And can rating. group couple is A ratio from investment another future can for Adrian CapEx on nominal grade outlook think terms can Adrian, and of rich the from financial sovereign settle the in expect? hedging what from set

Hanré Rossouw

And profits to plus, there's rating offshore to sovereign, But grade at the Thanks ceiling company. on of the that's is just for raking in in work its unless terms we've the the moment, does be the been investment in significant the the sovereign will a unfortunately, grade always how things of unfortunately, XX% the the ratings, that sovereign. unfortunately, with that. credit agencies rating with at And region agencies tassels rating the increase various moment. the engaging

think you guidance. safely In inflation XX in I terms, group outlook, get to terms a nominal a X% of the apply impact XX CapEx can four can you to

We are very comfortable that the that in next we guidance. that of kind mentioned, with year be I've line will

in XXXX well, up spend And think will it gas to the so hedging our sustaining cover And also targets. to XX meet the only terms but hedging. not I of billion of business, certainly that to the XX greenhouse transformation rand we've needed the the to as XXXX got our

XX As I've mentioned, to it that level. continuously In reassess the hedging XX% will oil, and to financial continue terms of does cTOome around down year for

business. that the function but detailed around as around seen coal. I mentioned expect have and well also as to sensitivity mentioned, absolute the in more The be only expect operational in it's gearing Ethan think well, the more, will of as balance as earlier, we But that debt general, to Carlo of levels analysis do relates the rate gearing on dollar not financial oil, Rand outcomes sheets do particularly we we and on Monte the hedging given lower net stronger levels level. the And particularly RAND more is ’XX. exchange I've the that our various we've to it a

Tiffany Sydow

Thank you future spike mic, are Could sorry, Hammond of what me questions Ken one. Sorry, from debt. around comes thoughts credit that at in visit Adrian and debt group? again you bank on new loans market is current you, Hanré FY a another honry. covered plan billion a two the And The part while refinancing comes bond of Cecil, stellar debt The to SPG. or from One X.X I've on XX. the already Pockys. Do give funding strategy? shows as and the the your profile you profile strategy?

Fleetwood Grobler

Thanks. Thanks, Tiffany.

I So I'll credit But of is the said sheet. terms balance I to But today. anything for and take fixing balance I'd in credit rude take for the where this isn't health. the think love very of, not sheet

I period debt X of a just gross debt level, On over US dollars. all had as we've US think, we dollars. of level a dollars. got billion our is X.X debt mentioned, at net six, US billion Effectively, a we've

is US that the shift cash. will of to Rand So in dollar our cash strategy, debt key focus that debt terms up into match The better refinancing more denominated of generation.

a options refinancing, bond. billion to And can to We're be another that XX. other a in financial of That got we very RCA a comfortable flows. denominated that got facility US yes, then the look a terms then instruments refinanced. existing bridge alternatives. that we've cash use use have this as November term loan there's comfortably In very needs and we've And at billion of as can we we'll to that relates well in year range as we X.X also refinance dollar year, bond

on for luckily balance not sleep, losing So start question. at of the the sheet, that thanks farm this

Tiffany Sydow

Operator, direct questions Thanks, can Hanré. move call Chorus a Please? to you to two Lanka. from I'm question? Alex Coma and take and session back going

Operator

your life? Alex, line is

Unidentified Analyst

Yes. couple got a I've of questions.

not you moment First that Or kind down go with just route? prices XX% target? question. regardless the very at ahead, to situation economics? this make LNG to you determined are there of production moment. to the to gas And go Is cut of - is of the which decide high at a the on First LNG all, just at point your

just on a refinery. Secondly, just I talked your about green that see track, turning you on presentation, to

keep pull been required to and will ratio? be So made lower cover down cover, new to the question my meet levers times back its regs. the to X.X decision open X.X should think in how the dividend, Thanks. order to them the about we of to And final of terms in what CapEx the is fuel level then

Tiffany Sydow

address could you if Hanré you, that. Thank

Hanré Rossouw

Let's start the dividend. with

the As relates X.X policy, allocation a dividend capital of we've which highlighted X.X incorporates times Core to framework cover our HIPS. to

any Core perhaps important just think I to funnies any note HIPS gains. excludes losses or hedging, that hedging excludes that any

$X we X.X. debt that sustained will to we've sure the obviously the X.X% that now the billion the period hit end. from to the So - go get levels terms, core X.X that a to full to below extent, cover that that of will if cash or dropped briefly, times in benefit of of To will, we that at net we business. lower cover, the full said period the that - the we we the briefly But absolute want see X.X generation throughout will investors to make the

Beyond who that, metrics cash as mentioned, to or excess as such I've aspects special will we through dividends return also shareholders buybacks.

Tiffany Sydow

Thank you, Hanré.

Fleetwood Grobler

Thank you, Alex.

LNG that we going nitric to in And I'm going weigh look the to options Priscilla ask address to question. on I'm at. So the

Alex, was requirement X it couple what of we if capital I'm clean fuel getting So, recall, arrange was plus, compliant, time years the NATEF have which arrange at ago, to a not market. is I given I sure billion announced believe the for we probably for I that

not we way is price, a means review 'XX. to investment. I'm feasibility but busy all, in partner that achieve have in cost. and we I clean with will rehomes that have it we compliant on of output TotalEnergies, you that achieved the operational two to give it's going come going things than the year, That for to we by towards a up very can with Now the ready are first amount that low nitric team And the very study our is and Fuels creative in a operational you but a feasibility and pre on for is of side on solution within at. the be say the mention expense type can petrol fuel I'm that pre that think not there. diesel the then on this get we quality jet today the the substantially Clean all is or cost That range substantially fields And and looking with, lower previous I it because next

And get the Okay, CapEx the next that months further that will on back we've to specific market. signaled amount. we six come within to hopefully clarity

Tiffany Sydow

want all costs. bit. said answer it Alex, a that, having But simple me is let at good Thanks, elaborate The Fleetwood. question. We no. to

We portfolio. are looking at a

mentioned, to that critical dilution, with our us deliver caught return there we I've needs be we of targeting even but to solutions, continue recognize break to the down going some XX are price shareholders. which we right for blended forward, we do will that As gas a

is So that critical. balance quite be going to

that's what So working we're towards.

because that South mindful also going going well, forward. require industries the guests to African Inc, as are We for there are

kilotons XX mean, And then I think predictable hoping ensures that days. of back that then much less. around The will as Meryamin as that you portion a how do we and regulatory we have. when don't be we I around, to September. of the XXX like there of to XX see for come we have know, would shutdown to XX, X% And as give we're guidance So the XXX will a that started we that framework gas

So that XXX also does have an impact of kilotons. to around XXX

time remain X.X around retaining will So taking FY be will done which 'XX, chart we into consideration, during post to a still the billion. I total X.X%. phase And suppose, have between

Priscillah Mabelane

Question.

our we to well and LNG, forward X. actually as what are So exploration getting we development LNG as it's because an important of overview perhaps move overall and course, of strategy to portfolio a actually teas balance we before just the gas give that it's appropriate

yet development overall portfolio to earlier power you've a the we time, XXXX. progress seen in at actually that few expansion on ratio projects So terms the we've making working of terms how bring that are on, At announced in we back today our quite are of of good our the us of the on. LNG and same the of we already of board, maximizing flexibility

will we reach sheet by to ourselves. commercial LNG, it's year. In with we term can to the so negotiations us finalize before and right commit are quite Again, about partners. the take our that the the We're terms and X months of That months FID we probably to finalize this we of terms targeting discussions end important start construction. complete that or enable with

discussing also them, timing with that X We are we've more particularly the given flexibility. got fact now years

What create So clarity the molecules. Hopefully, the of more where more like to us the is flexibility we line ensure gives would we of time XXXX, are good and infrastructure critical going some actual is built as original was engage for actually Maputo the is you that a we that in forward. to contracting

Fleetwood Grobler

into could market increase be not detailed the the question reversal tax just value have negative attract I absolutely your potentially we not Note impairment. value a the had have our assumptions And jump disclosure also on in to by that that of in whether on extent, change statements. assets, other around in we've you're lived. world carrying now to a oil could financial to the the account that that so a impact back on If measure have impairment as did, oil And assumptions think then highlighted our stronger offset valuation. long led that in a X on of -- or this on -- the the prices assumptions the carbon could tightening also of this that value. the and that impairment could annual And on of I of be what could did of take assessment carrying course, the spot we structural it's terms to can then assumptions wasn't there's of short-term

assessed at the of We've and do assessment reverse conclusion basis to So continue sensitivities. annual impairments. no course, on got need the point an But we'll this the on to of basis. there's to that that

Hanré Rossouw

Adrian Thank you, we think Chorus please next line. in had Call, Hammond Andre. go Adrian, with ahead. I Sticking

Priscillah Mabelane

maybe in and Germany impact on could if they Pacific. of line please? hitting Germany we that that Germany moves your European in increases Unfortunately, options What would Adrian's heading Stage worried margins dropped. European me. guidance the Can Italy happening pretty sure that the also to what has Nicholson, markets what's Great. look Could and What instance? chemical person your if The tell many can. Chris hear be hope I just me call scale chemical about feedstock to in again. you you are from mean in the I then happens cost business. on the the My where be gas businesses are we in question around some in I'm move is can And you European business. as X? see negative.

Priscillah Mabelane

we ask from going of of different on number from to that. a to North to is One different. levers and Suffice a Germany Guys, dependent on that. others Thank very we've that sources in are the have out and situations that. because and do I'm for XX to Chris. need you in Italy Chris. that is the supported the I'm I Russian of southern for. going South of gas. you, on got Sicily rate got Brad watch clear to Happy Brad to But question, think to weigh understanding part notwithstanding, Speaker Augusta weigh to we the ask Thank gas And

partners we've region. to of a working supply to our the as As on reduced industry in response task team all Sehat gas said, got our

As for Italy, start first. there let's

I we're able to continue our be operations. placed well to think

the In station gas guidance our line intending host as their -- over on they're supplies. Marel, with as gas consumption generation company, portfolio the continue is be to that to fed power those well network. government able liquid of options in operations. coal-fired natural Evonik. to Central actually and the some steam fuel in switch as of to our have gas as LPG their the publicly announced We They've Germany large well site by

do we have Brunsbuttel, We've For liquid options working been well. fuel choices. as on

we side natural unique to able there. to gas the about that receive in low-pressure provide the the be expecting also of to degree of things continue Brunsbuttel community One steam heating is some steam, we're to to

at all that's of higher sit whether we if monitor the you and they continue obviously public continue latest German the that. they at some to wouldn't think look from than winter, I they be for to information the government, a concern that storage level normally do of what up build a

margins pressure. under terms In certainly, of margins, questions your are on

at If our some are of you put it consumers. pressure large prices, gas look operations daily on that gas does

And then see And alternative 'XX. done able on so supplies on. guidance rates, as with be wider Plywood making customers at we're we -- the we Mozambique we it a because would some That to work can on mentioned the gave be earlier, theme. and energy to sources pressure X% few through if moderate questions to choices, why our we those was volume cluster but usual, around feedstocks. on There be also back alternative and are over X% operational pass looking to a There choices to we to showing much fiscal to Thank we of making few of on bit potentially I'll necessary, continue you, that's will the see for where than a what gas. platform. Brad. I'm produce. gas, number how together. are online questions coming switch a going

LNG needed Hammond still one If legal were settle from comes first to Synfuels level. is volumes SBG. historically plateau extended X.X% the this in Adrian to is return to to The X.X% XXXX, the at why

been that be touched could have And how Tiffany. declining Thank to what to transitions hydrogen? spent? that. Simon. is of And play enough you, at? another gas on Mozambique. CapEx expected on think addressing needs covered all and if company these while to reserves by that the Are address in gas in green the looked I fulfill we also the addressed solutions ethos much basically has -- think Mozambique you sole the some already I you neck. What Presales current sharply then there's vital is And gas, have from

and only what within that look our field. would in operate say efforts opportunities continue we that we the can are our at to fields add I So to our

success So very good with we had drilling well infill campaign.

Energy know we're and a the is with about indicated Precilla LNG we opportunity that basis. -- the the assist in-country project. that gas, volume and we've Moreover, harvesting on more that do regard. optionality gas the of key would But are the was can focus willing will and need Mozambican that busy about, committed. we any got informed for the that, in is Mozambican also drilling want be of we on to other first with create So think power more and that -- has also finalizing I team work South gas only in those more we us are about options extension will to to they the to gas they the station own bring over also busy of but adjacencies out to And own PSA excited not that that implementation we help gas that there the have that beyond think so and but also excess for that the our of and But we that all us the of be may area. period fuels Africa, think the committed the our if agreements be taker and are

are. that you, summary, Fleet. So I I Thank of good where we think, think

around thank Investec more higher than any be gas think the the could gas situation XX% Habitare and maximum that next the current challenges prices, price, NASA the suggests think question from I nurse you, pricing Karnes was comes in Herbert. the I gas enforcing maximum prices

with realistic in did on realistic. would within nurses that gas gigajoule, think would of year of not maximum engaging finalize that given but gas been first price the per come ZAR mechanism the have is We we through price quarter since this XXX today's that framework environment be to pricing the have the been to a

price We've we NSA. with haven't that in different level. finalized a proposed engaged have at time, We point -- with this NSAA

within in indicated Speaker that assess we to our certainty was not we've with hold that of waiting had price rest our like I We earnest would have X this come the that test we both August. so for we will that have that in end, the result in And mentioned the you Yes. question. is realistic all the price that once us year framework that of then And would in can they implement what was that only take we've forward the pricing say got we for year for rationality we and us to because last -- that will will announcement customers in was Sasol customers. agreement, already engagement Thank to are what agreed that a that agreed

is I to one a of that think, first indicated mitigation all, our of have level. have we levers ratable coal supply our stockpile

level. our I season this stockpile think to very we've exacerbated started, rainy this not was got very And year last in our ability time, year, that the different Now maintain approach. a level software-level a the when healthy

We X.X maintain level stockpile tonnes. will our the well million above

go of now As into Synfuels to that -- a shutdown as fact, last will us September. Simon we of of last the week matter on the the end that

increasing X.X to tonnes that more by make can mitigate the the the maybe we've X Stefan. entered we million so event. into or of got coal season range and We Thanks, a to beyond, mining that will that X.X, when that a through security we bolster rainy so stockpile stockpile measures that million

tie and in profits at In sovereign there be And unless that. a the unfortunately, at increase sovereign on the always rating rating Sasol's in been XX% offshore the investment-grade agencies there's moment. unfortunately, rating Unfortunately, with the the company. significant terms to things of for region engaging plus. the -- ratings, ceiling that's will rating the moment, we've grade of credit does the But agencies work various just how

terms nominal to can a X%, XX% of you impact I outlook, inflation guidance. CapEx safely to XX% think group In apply terms, the in X%

next XXXX comfortable in line billion business, as as of We XX the year, our well. XX mentioned, are hedging, around sustaining also greenhouse will hedging XX% oil. targets. terms that and that that the certainly I with we've kind think year as of in meet very reassess hedging not got million we terms down that gas the And to guidance. XX for to our spend transformation ZAR be does the level. but only ZAR I've needed I've And mentioned, -- the in over of to continuously the we'll 'XX financial XX, the of to come to

the our earlier, we outcomes. the of gearing, the we a business, I And think level. to particularly -- detailed it's as financial around absolute operational of I've we analysis net in various sensitivity do will debt that function and mentioned Monte expect gearing Carlo

do other plan the also more SBG. in sorry, profile that at as is a shows now from the comes seeing are well So we funding as new you, not from more future give and the of on debt. sheet, to as market ZAR mic Adrian on Can But more 'XX. Well, your balance Andre. comes group at already strategy. coal. Sasol the again X debt the on refinancing FY Hammond one. Thanks, questions in general, that The around to you Do thoughts be but around what oil, the levels ethane as the The you rand-dollar part rate of covered hedging it Could debt mentioned, on strategy? expect lower Tiffany. profile we're bank and as only particularly Thank exchange I relates you and stronger billion levels X.X loans One current Marks. me well Sellari given I've spike

So I'll terms health. -- I for balance love credit take think in rude this is the but sheet, sheet credit the said to balance the very not and But I'd of I fixing isn't for anything of today. take where

period effectively I billion a level USD USD we U.S. debt over net think just X as our we've billion X.X end level, had got debt debt the is of we've gross dollars. at mentioned, of

better cash rand-denominated refinancing of to dollar debt terms focus of into U.S. strategy, key in match more will that shift cash So the our generation. is debt that

'XX refinance look to term we comfortable billion range year, use $X existing That there's U.S. bond relates a will alternatives. November that. million. well In be to we another cash got we as terms can this of refinanced. yes, we've ZAR that comfortably a then RCF options year at financial then of in a very very that as bond. and We're refinancing, that as And needs We've We facility flows. instruments the bridge. other loan can to use got a in And X.X have also billion denominated

So Thanks, move not Operator, questions. got of that the likely on Thanks plan the can losing to a direct and take sheet. Andre. Chorus for from balance question. this you Call questions, I'm sleep couple I've X questions Comer and back Lake going Alex please? to

determined First can that of down not to and ahead LNG the route LNG to a you price the gas all, the high of go make into just point XX% moment. just decide on That's the your Obviously, go there you at situation. is regardless economics. in the are first very production Is which -- to question.

a just Natura, talked you on to refinery. your I green Secondly, see on presentation about just

CapEx lower but cover to the that How of level the open And the fuel with you new then we cover. to X.X rig? levers decision be the order as make should think will as to you could required Andre, to dividend, the in dividend. if So of a Let pull Thank in me address that terms down about ratio. X.Xx start

highlighted, dividend X.Xx core of to cover As EPS. framework policy, our we've capital relates the X.X which to incorporates allocation

any excludes I note losses perhaps excludes just gains. funding or any Core to important hedging that that think

will that X.Xx sure the the to core generation cash full that of net to the the make $X X.X% debt at we lower to X.X%. go terms, billion the cover of a the to briefly the to a the cover that of that briefly obviously benefit sustain dropped absolute But throughout in business. will we end. we want investors that levels extent, below To now that to X.X% get So period hit we period from see

we Thank I've buybacks. mentioned, shareholders as aspects excess metric special also or through Beyond will as dividends cash that, such you, Alex. to return

to that and question, options going to we address in the Natref the at. ask on I'm So I'm weigh Precilla to look LNG going

capital I'm requirement is Alex, have was which ago, X market. probably what years fuel announced the for if clean -- Natref getting couple range. it So sure a compliant, recall, believe plus given range time, a I we was the that not at to of billion -- a I We've

in things Total partner Energies. achieved study and have X review our prefeasibility our the operational Now -- we with

low we And next think the amount. is up low within the price means simple I that. But but First the because good further that fuels question. to give get is And this clarity won't operational with. I'm previous the next it. say and not investment. it X range it back, said output amount, market. all by clean me on substantially will compliant prefeasibility is to with months we can rent that come have creative The ready of the nitrite be are But And or to within we towards diesel fuel having cost. the busy cost that than we're that clean you with that substantially is going of 'XX. that that expense solution quality signaled specific type it's can teen for going looking we've achieve Thanks, We at we or very get answer do not a numbers. all, that no. pet costs today judged year. on way it come in lower the the Alex, I'm And mention to to at, hopefully, CapEx very I will that is for a then the and That you on fuels on there, a

I've we the dilution which be we a for a We mentioned, right price recognize needs deliver our some are of looking that are there that we -- will even at returns as to blended forward, but us for portfolio, with we going to do critical shareholders. targeting quite break

quite is balance critical. be that So going to

going well mindful guests So the South require towards. because for we African are forward. working as industries there We're are that also Inc.

this hoping as a price the regulatory forward. is be framework we're that ensures appropriate that predictable there that So will affordable going

are current negotiations term of a go current we hopefully. the the of the market, are but long-term note targeting will beyond contract our cycle, sheet that terms actually and In in volatility we that mindful

LNG So key for with go ahead built, impact infrastructure please. sources significantly. The with Prasila. us that, we you, question. could our your volatility Having said into that questions, competitive that, that opportunity is then find the Thank for Sashank, a expect alternative if future. we don't to the us you the can will be are

clean So this Obviously, just partially or much the I'm the first just I think at what on on petrol earlier looking now was that response, Peder it's hedging be business. mentioned And your just was a number I you're to almost Elaine. changed close fuel the lower in in versus did fuel market in asked that and retail know out you question, are prices so up hedge, guidance following now? margins the TRx that compliance. to wondering question the I'm why is think my cost second U.S. there and barrels. which FY impacting for XX lower going sure gallon, a $X.XX much you 'XX, million is the

thing look policy the So at at one you've FY in seem coming for end the quarters. an doesn't had like 'XX. detained least in It hedging just

So just deal I fuel Thank with the Sashank. driving wondering that will what's CapEx. strategy. you, clean

I think mentioned it we've earlier.

way was really taking the item of clean creative fuels one capital diesel out the for So compliance. the the

And only. that help you does mix. hybrid petrol So to It the on base clean in and a basis, get component, a also big a then, your would capital base feedstock bio difference. crude solution on a so for full although down when there bring of be course, made fuel

But do that said, towards drivers we that that a now much us the detail. and let's I details study, develop, seeing as haven't the CapEx those number. are lower to then more done we help we've previous I signal think but we'll more were work, got

hedging, terms get And the year is the do we ethane the million. stability. focus did to to ZAR really this On last X in of year, operational

in U.S. well. flexibility take I we, ethylene business, get ethylene. as can course, think merchant we've ethane Remember, got we our of produce

higher at the pricing price. there spike in we didn't right lock current that ethane to price significant a was actually it levels, So -- in look the the we given see

side, a is questions into of curve I've go material the certainly again those stress the But strategy. 'XX, ethane -- and we that us we the we 'XX, Andre, that venture over not didn't the got hedges market. on our the around context we again the to the assess return the coal we So on reasonable the If that thanks platform, oil will and bigger in in move and for in market Thank the will does questions, Shanade. forward online for into to pricing for the business, can the other you, back that hedging do. X there's the lock

extends question second projects Matute energy out map market. The first Cambridge how one at emerging Investments funded. at from the comes operations thank Thank Yes. is if from of XXXX, questions. if integrated Peter you, environmental April And them XXXX. Tao, for road comes you at spell the of risk if April projects and be on And those clean keen implementation the NPV beyond so, Can targeted the compliance Secunda Tao will you, could Peter, initiatives the I date. if of some

to that's nascent of in XX% think than green clearly XXXX cap implemented we morning, the these will And But we XXXX we of I clearly will the I in of we clean to we into corn still indicated energy within will So framework certain more project other projects that we as see considerations, And those the in markets all, some market that likes on from the clean we and hydrogen. the capital moderating mega and first apply project, allocation energy this or move have any our explained or learning have allocation have as of that going in framework. Henry us have that. will also of not think we U.S. large the invest we is indicated low we capital And low that parameters also guide transform.

would such offtake. One secure anchors the venture in of to a underpinning be an

production, we draw implementing you be certainty We it what we with. if hydrogen will not invest would like have capital the how and and don't offtake it in green around means that

have we -- when we at the think at the within that So our that way of at complex when capital -- think we cross and look integrated the I is point that's disciplined road it in we all SOX focus allocation implementation. this will the along more environmental framework unoperationWe and about the opportunity map in time. get And solution stage. need the signaled When terms

has that I remains. changed risk there. So think Nothing

the of Peter, regulator Brad demand from win. Yes, X% clarity I me the technical we but Thank solution in Brad will Eurasia like year or But at so, we're and to to what that of X% at get Yes. a within situation expectation is underpinning growth. the not. And We in in specific such in we is but concentration to the look the on to of application the the let essential think clarity terms compliance. do very to -- I and that's Napier we've regulator. ask it compliance load-based first? have would combined address the been what guess open framework the and segment, honest to risk with the SOX around Wade I'm that We combined get chemicals one segment that are parks to now a it's the also there's apply, that the versus a very the within question of risk is moment. on the at working going would but next hands you, hope for segments that be cognizant you that and that based hear date, the inform regulatory let

question. I for think, thank the you Wade,

versus for of prior we I sales growth guiding year. think volumes the were

So sectors market number see to a see 'XX of higher X% we continuing versus sales do to recover. volumes do 'XX expect in our

those fiscal of during Some depressed were actually 'XX. quite

is automotive one. So

see growth emission We continue a demand to also for in in and catalysts control process catalysts.

and happening that stepping do really we saw of care at essential mentioned, growth and Leon as chemicals, And recessions up. pretty much XXXX see levels regardless I GDP think we XXXX. and pandemics we So back that see in that the

expect do recover volumes. be to we So those to able

customers continue the account to economics. big afford. think, what happens work into to we is question with consumer the I to but cost what our taking earlier, And be -- mentioned also the can I pass on to as the

factor Thank so to because build our for be key up able able of this run to margins And positive some don't be very we'll operating to to a going away. we'll as we year outlook generate you, to inventories for those to want that's Brad. and to closely at units be fall whether monitor that demand continue rates find the

a there's from connect you Operator, last close, call we question Chorus Adrian. please Before could Adrian.

the down for to outlook then to matures. in X I mind just what to stated to terms show implication South Africa. core funded never South Altice you Just that existing back it simply at is situation reducing debt. to shifting can't coal, African million and the Could the and on gas discussion intend XXXX. reconciliate break earnings? think know about and dais is this with African Haley's core you it you of back registers comes up come the And a purchase the from you call into between where that converting. until come how tonnes. And Is life expectancy that I easy by just on is with from. could production one service has South some the on to be -- where And or situation dollar in is it

that? plans Thanks, around are your what So Adrian.

debt and dollar conversion. of debt In terms

gross noted, either as you maturities and we've And debt. future, to relates manage to the billion settle it back debt. the are that I've ran and other to buy got U.S. profile ability question we DMTN of ZAR easy could back we've in the these maturity got a X just got we've also As to if that or the of -- quite

strong you've various that I is the in great flexibility balance think that's sheet got thing about a options.

absolute interim I've can that flow refinancing targeting, well. generation we also But use, as RCF of dollar facility debt. we to with those can got we've rand the debt used in lower an measure as mentioned, just effective terms use settle debt to can $X.X billion in So also we balance or cash then debt as be ultimately, are

a coal Yes. terms in of Adrian. outlook usage you, think in I Thank

indicated onwards. So from XXXX we have that

a earlier I've also As of indicated turndown are this looking phase at morning, we our boilers.

about from not a is the generated the generated or also of Now to the reductions and about drops in chemical process in is block Fisher target attain us block because and gasification side only is our our developed that refinery utility to helping COX reduction emission of or process. in

ton use excited for this valuable looking why that what to fine of feedstock So is is we at, that going coal XX%, that through is so XX% cold. us about goes enable coal, and are there's into and fine And remember, gasification. mine, coal the about XX% we're will fine solution we

use of and a is mine we it can that we to need source goal, feedstock achieve if to less that. fine So coal

into that work that the optionality. that's is but months. XX from away that looking we into gas to of more gas into inherent in in the that coal achieve that that all usage reduction the loop products. think also are gas, are part the some And to of we've and the the So we -- utilization total the of -- hydrogen done now, of onwards. of turn XXXX the COX that I covered us I look Those introduction think past combination well work opportunities circuit, we pathways that's gives But fine

in looking our in, with or know focus IsoBonellago, And but very that you As I'm to that, ask terms Isabella, is I of To loyal to options to we're far comes over end. We you're Is contract Ryan weigh as one it, the think Yes. going Tugela further right. question. Sasol much has Thank at been the contract years. very for many a an coming quite on to

reserves cast also mined, know further that stop colleagues We not we're of we Alexander either by necessarily underground. area do own are but some look mining in having also be have the open so-called block reserves, options, on by they ourselves, at also the means that talking of block can and for to a also other

other have for around we'll and Sasol. then area of we that, there mind reserves to at is And owners that need soon. looking also, are We some answers that

going be and covered. will to session that Sasol Thank for So we that, up With of you. the the wrap rest we're Qaend you, the we Thank team. time management today. believe executive your Ryan. Hundred

any participation If for it the questions, respond you.+ office, please -- your have thank further a direct further. you Relations pleasant safe to happily Thank you we and day again will Investor you you. wish We today. Thank

Sasol Limited (SSL) 23 Aug 222022 Q4 Earnings call transcript