ange of US$500 million to US$1 billion. This will be directed towards our growth focus areas in specialty chemicals, exploration and production and retail fuels,” says Victor. “In the longer term, we will leverage our investment base with flexibility for greater growth that we will drive through partnerships. In the 2022 plus timeframe, we are confident that we will be in a position to progressively increase the dividend payout to 45% or 2,2 times cover.” Victor concludes: “Based on our scenarios and modelling, we believe we can deliver at least 12% ROIC and 5% earnings before interest and tax (EBIT) growth through the cycle, in the medium to longer-term.” Sasol has also made several key decisions in areas where the company does not believe it can maintain a leading position or deliver strong returns. In this regard, one of several important decisions is that Sasol will not invest in further greenfields gas-to-liquids (GTL) projects. This decision means the company will no longer pursue its proposed GTL project in the US. In January 2015 Sasol announced it was delaying a final investment decision on the project to conserve cash in response to lower oil prices. “While our current GTL assets are generating good returns and cash flows, the value proposition for Sasol to build new GTL projects is uneconomic against a volatile external environment and structural shift to a low oil price environment.” Cornell adds Sasol will maintain its industry-leading position in Fischer-Tropsch (FT) technology. “We will continue to work on opportunities to optimise and improve our existing facilities in regard to catalyst performance, product yields and energy efficiency. We also see further opportunities to high-grade the value from our GTL molecules through base oils extraction, and we will continue to license and support our FT technology,” says Cornell. Sasol has also decided not to invest in any additional crude oil refining capacity. “This decision was informed by the large investments that will be required to meet changing fuel specifications in South Africa and a lack of any clear competitive advantage for Sasol outside our existing position in Secunda,” says Cornell. “We have also made an important call on commodity chemicals,” says Nqwababa. “While we have a solid foundation business in commodity chemicals and the world-scale LCCP under construction in the US, the risk profile to execute such projects alone, in the future, is larger than what Sasol wishes to undertake. Such investments in feedstockadvantaged locations may still be considered, but we will not entertain wholly-owned investments in similar mega-projects, such as the LCCP, going forward.” In line with enhancing its robust foundation, Sasol will continue to invest in extracting further value from its chemicals facilities in the US and South Africa, while also pursuing commodity chemicals investments where this can support the company’s desire to grow its specialty chemicals portfolio. “Our strong foundation competitively positions the company for ongoing value creation and future growth, underscored by a clear, focused strategy that taps into our core strengths and exploits potential in key growth markets,” says Cornell. “We will be executing our strategy in a phased, disciplined and progressive manner. Our growth ambitions will, of course, take into account our balance sheet, our earnings flow and ability to successfully execute our plans to ensure we deliver superior returns to our shareholders,” concludes Nqwababa. Sasol may, in this document, make certain statements that are not historical facts and 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 forwardlooking 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 and cost reductions, including in connection with our Business Performance Enhancement Programme and Response Plan. 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 forwardlooking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 27 September 2016 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: A billion is defined as one thousand million. All references to years refer to the financial year ended 30 June. Any reference to a calendar year is prefaced by the word “calendar”. Comprehensive additional information is available on our website: www.sasol.com ZWICK TRIPLE ECCENTRIC VALVE WITH SUPERIOR OPERATING CHARACTERISTICS With its triple eccentric design and metal-to-metal sealing, the TRI-CON Series guarantees an ideal valve design. • True cone in cone sealing • Frictionless operating • Low torques • Constant closing angle on the total circumference The operating characteristics and the tightness of the valve are not influenced by high differences in temperatures and pressure fluctuations because of the triple eccentric geometry and the valves’ special features. Maximum service life is achieved by eliminating any “rubbing” between the laminated seal around the total circumference during seating which enables a frictionless opening and closing. This guarantees full tightness and low operating torques. For more information contact: Desmond Delport, Valve & Automation Tel: +27(0)11 397 2833 Email: desmond.delport@ valve.co.za Web: www.valve.co.za 23
Proudly hosted by The <strong>African</strong> Petrochemical Roadshow offers a diagonal slice of the industry, showcasing and highlighting multiple products, services and expertise available to the Petrochemical Industry, General Engineering, Mining and Power Generation sectors. Upcoming Petrochemical Roadshows 2018 Secunda Petrochemical Roadshow 15 March 2018 Sasol Recreation Club Sasolburg Petrochemical Roadshow 30 August 2018 Flavius Mareka College Hall Please contact us for further information 011 083 5125 sales@africanpetrochemicals.co.za www.africanpetrochemicals.co.za Mosselbay Petrochemical Roadshow October 2018 Mosselbay Civic Centre Durban Petrochemical Roadshow 1 <strong>Nov</strong>ember 2018 Amanzimtoti Civic Centre Dates are subject to change 28 June 2018 THE ENGINEERING, PROCUREMENT & CONSTRUCTION EXPO The Engineering, Procurement and Construction Expo This is the only expo hosted specifically for the Engineering Procurement and Construction (EPC) Industries in Gauteng. The show is an ideal business to business networking opportunity. 24
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