Sasol, an integrated chemicals and energy company, has announced that it is not divesting its downstream fuel retail business as part of its ongoing asset disposal process
Paul Victor, Sasol chief financial officer, said, “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.”
“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.
Sasol announced on 12 March 2020 that it is reviewing a range of actions to address the challenges created by the impact of COVID-19 and the recent decline in oil and chemical prices.
A package of measures was developed with the aim of repositioning the company over the next 24 months. Any divestment or similar activity will be carried out in accordance with the balance sheet, shareholder value and strategic goals and will build on the comprehensive asset review process that began 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.
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.