JOHANNESBURG - Addressing investors on Sasol’s new strategy, Nqwababa said the decision to dispose of the asset followed a review of the company’s global assets.
To date, said Nqwababa, the company has completed review on more than half of all its assets. “This is underpinned by our drive to improve asset performance, not liquidity requirements,” he said. The reviews confirmed that the majority of Sasol’s assets would be retained, he said.
Nqwababa said Sasol, together with its partner in the Canadian project Process Energy, would commence “a structured divestment process.” Sasol joint chief executive Stephen Cornell said, in the development of the new strategy, Sasol had to make “hard choices.”
This included a decision not to make further investments in new crude refining capacity. He said the company had decided not to invest in renewable energy, stating that renewables offered no clear growth value for Sasol.
Instead, Sasol would focus on growing specialty chemicals in select attractive end market segments, its pursuit of progressive growth in exploration and growing liquid fuels retail in southern Africa.
Commenting on exploration opportunities in the rest of Africa, Nqwababa said, “To win on the African continent, we will leverage our current upstream expertise, while continuing to strengthen our (exploration and production) capabilities given the larger role we envisage for Sasol Exploration and Production International going forward.”
- BUSINESS REPORT ONLINE