Edited from: annual report fiscal 2008
Sasol states that its strategy is reviewed annually to ensure that it remains robust and competitive. In fiscal year 2008, Sasol amended its statement of purpose to recognise the integral role of its chemical businesses in the group’s sustainable growth, alongside its energy businesses. Sasol is now described as an integrated energy and chemicals company.
Strategy key points
Commercialising and expanding its proprietary gas-to-liquids (GTL) and coal-to-liquids (CTL) technologies.
Growing its chemical portfolio, leveraging technological/feedstock advantages.
Exploiting complementary upstream hydrocarbon opportunities.
Sasol states that its strategy is to leverage its core competitive advantages by replicating its business model to create several integrated hubs based on natural gas as well as coal, thereby substantially growing its upstream, liquid fuels and chemical businesses, and by continuing to develop its existing asset base.
It will focus on the following key areas:
Continue to implement its broad-based black economic empowerment (BEE) strategy across the seven pillars of BEE using the codes of good practice for broad-based black economic empowerment - it will do this by delivering on the South African transformation agenda.
Grow and improve its South African production footprint, achieve a world-class safety record, moderate its environmental footprint by achieving stated targets for emission reductions supported by improvements in energy efficiency and continue its drive for operations excellence – it will achieve this by nurturing and growing its existing asset base.
Focus on recruiting, developing and retaining skills needed to meet its strategic objectives, build its talent pipeline through focused succession planning and leadership development and extend its skills capacity – it will achieve this by developing and empowering its people to deliver growth.
Successful completion and operation of projects, technology development for GTL and CTL plants, pursue local and international CTL and GTL opportunities and grow chemical businesses based on its technologies – it will do this by commercialising its technological lead.
In Sasol’s chemical business, it supports the group’s strategy for sustainable growth by leveraging its existing asset base (organic growth) and by developing additional opportunities (new growth). New growth is supported by two teams, including members from various chemical businesses and from Sasol Technology.
One team is focused on Fischer-Tropsch (FT) related opportunities in cooperation with the South African energy business and the international energy business. The other team is concentrating on non-FT-related opportunities where the chemical businesses will continue to actively seek growth from competitive feedstock, market and technology positions.
Its chemical portfolio includes a range of businesses that manufacture polymers, solvents, surfactants, aluminas, waxes, fertilizers, explosives and phenolics. It actively managed this portfolio by making some important divestments and acquisitions during 2008, these include:
Sasol Olefins & Surfactants commissioned a new joint venture plant producing alcohols derived from vegetable oils in China.
Sasol closed the “unprofitable” linear alkyl benzene (LAB) and normal paraffin production capacity in the US and Italy and are also in the process of reducing oxo-alcohol production in Italy.
Sasol Wax sold its interests in Paramelt, Netherlands and acquired the outstanding shareholding in Merkur Vaseline, Germany and in Lux International, US.
Sasol Wax also closed its Swiss and New Zealand offices.
Sasol Wax is expanding its production of wax in Sasolburg, South Africa.
In South Africa, Sasol Nitro disposed of 50% of its investment in Sasol Dyno Nobel and Sasol Chemical Industries disposed of its investment in African Amines and acquired the remaining shareholding of Peroxide Chemicals.
Sasol Solvents acquired the outstanding shareholding of Sasol Dia Acrylates after Sasol Solvents and Mitsubishi Chemical Corporation decided to dissolve its acrylates joint venture; and ChemCity sold its interests in Cirebelle, South Africa.
Looking ahead, Sasol expects an overall improvement in production volumes as a result of a continued “ramp-up” of its newly commissioned projects. It further expects a modest increase in the average crude oil price while exchange rates are forecasted to weaken marginally. Sasol also states that its refining and chemicals margins are forecast to soften. With these factors taken into consideration, the company has forecasted robust growth for the 2009 financial year.
In its chemical businesses, it will see additional capacity coming on-stream during the current financial year. This is expected to lead to further volume growth for the chemical business of Sasol. However, it assumes that the softening of chemical margins will occur due to a global slowdown in demand, coupled with increased supply from the Middle East and Asia.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.
See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Sasol, year ended 30 June
|
|
2009 |
2008 |
2007 |
2006 |
2005 |
|
Sales (Rmb m) |
137,836 |
129,943 |
98,127 |
82,395 |
69,239 |
|
Operating Profit (Rmb m) |
24,666 |
33,816 |
25,621 |
17,212 |
14,386 |
|
Total Assets (Rmb m) |
145,838 |
140,112 |
119,065 |
103,158 |
88,178 |
|
Diluted earnings per share (Rmb) |
22.80 |
36.78 |
27.02 |
16.51 |
15.22 |
|
Number of Employees |
33,544 |
33,928 |
31,860 |
31,460 |
30,004 |
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Sasol
Company Structure
Sasol is a diversified petrochemical company with production facilities in South Africa and several other countries worldwide. The history of Sasol dates back to 1927 when a white paper was tabled in parliament to investigate the establishment of an oil-from-coal industry in South Africa. It was realised then that South Africa did not have any crude oil reserves and that the country's balance of payments had to be protected against increasing crude oil imports. After many years of research and international negotiations, the company was eventually formed in 1950. Sasol was listed on the JSE Securities Exchange in 1979 and on the New York Nasdaq stock market in 1982.
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