fbpx Sasol not divesting its fuel retail business | Sasol
Home

Sasol not divesting its fuel retail business

Date: 
26 May 2020

Johannesburg, South Africa – Johannesburg, South Africa – Sasol is not divesting its downstream fuel retail business as part of its ongoing asset disposal process. 

“While Sasol is in the process of reviewing opportunities in this regard, it is important to note that we remain committed to our strategy, which includes growing our fuel retail presence in South Africa,” said Sasol Chief Financial Officer, Paul Victor. 
Sasol’s energy business in South Africa has a strong brand of 410 retail convenience centres, which account for 11% of the regulated retail market. 

“Here, our focus remains on improving margins by looking for higher value markets for our existing production of fuels. This means both organic retail growth, by increasing our retail site development and conversion of sites to the Sasol brand, and possible small scale acquisitions,” Victor explained.  

“Although we are regularly approached by interested parties to acquire or partner with us in the retail network space, we are not in discussions with any such parties to divest or partner in our downstream fuel retail business. While recent events have created significant short-term challenges, we are confident our business is fundamentally robust and we have a clear pathway to resume value creation,” said Victor. 

On 12 March 2020, Sasol announced that it was reviewing a variety of actions to address the challenges created by the impact of COVID-19 and the recent decline in the oil and chemical prices. 

A package of measures have been developed that is intended to reposition the company over the following 24 months. One of these measures will be our existing asset disposal programme. Any divestment or similar activity will be executed in line with balance sheet, shareholder value and strategic objectives in mind and builds on the comprehensive asset review process which commenced in November 2017. 

Sasol has made progress on its expedited review of the business to consider how it can be most effectively positioned to be sustainable in a low oil price environment. Consistent with this approach, the expanded asset disposal process has yielded good interest in relation to a number of assets, despite the macro environment uncertainty. 

Timely updates on progress will be provided at the appropriate time in line with good corporate governance and our disclosure obligations pursuant to our listings on the JSE and the NYSE.
Sasol’s vision is still to be a leading integrated global chemical and energy company, proudly rooted in our South African heritage, delivering superior value to our stakeholders. 

 

Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
 
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”.