Sasol outlines turnaround strategy as shares surge 12% after capital markets presentation

SASOL was a top mover on the JSE Tuesday, with its long-languishing share price surging 12% after investors appeared enamoured by a capital markets presentation, where a three-year turnaround strategy was outlined to restore the group operations back to optimal performance.

- EDWARD WEST

The share price was trading at R81.75 on Tuesday afternoon on the JSE, this after the price has fallen steadily over three years from R391.02, in line with the group’s weaker financial performance.

CEO Simon Baloyi admitted in his presentation that their performance was below par over the last four years, but a three-year turnaround plan had been formulated to reduce debt, restore the local operations and position the international chemicals business for potential further value unlock initiatives by the end of the decade.

He said the group, a major employer in South Africa and a contributor of about 5% of South Africa's GDP, had recently conducted a “deep dive” review to see what was holding its performance.

He said a new reset strategy for the international chemicals business would target it reaching a cash positive before financing position in the 2026 financial year.

In South Africa, the feedstock destoning project was expected to come on stream at the end of this year and it would result in a step change of performance, from a situation where the deteriorating quality of coal was impacting the efficiency of the gasifier plant fleet, he said.

Many changes across the entire value chain and fleet of gasifiers had also been implemented and these were expected to see the group capable of restoring production to previous optimum levels.