Sasol full-year results with CEO Fleetwood Grobler

Sasol, a global integrated chemicals and energy company, revealed a profitable fiscal year ending in June, a stark contrast to the previous year which saw losses due to disruptions caused by the Covid-19 pandemic. Despite the positive results, Sasol decided against declaring a dividend, pointing to ongoing macroeconomic uncertainty. CNBC Africa's recent interview with Fleetwood Grobler, CEO of Sasol, shed light on the company's financial performance and future outlook. Grobler highlighted the company's strategic balance sheet reset and debt reduction efforts, signaling a positive trajectory for the company's financial health. The CEO also addressed key considerations such as volatile oil and chemical prices, the decision to forego a rights issue, and the potential reinstatement of dividends. Sasol's commitment to sustainability was underscored by Grobler's mention of increased greenhouse gas reduction targets and a forthcoming climate strategy update at the company's upcoming capital markets day in September. Grobler emphasized the significance of Sasol's recent numbers, attributing the revision to an adjustment in impairment calculations rather than restating prior financials entirely. The CEO expressed pride in the team's accomplishments amidst a challenging year, indicating a solid performance on the company's part. Sasol's focus on debt reduction, aiming to bring its debt below the five billion US dollar mark, reflects a deliberate effort towards financial stability and efficiency. Regarding the outlook for oil and chemical prices, Grobler acknowledged the macroeconomic volatility and the potential impact of external factors such as the Delta variant. Sasol's prudent risk management approach, including a focused hedging program, aims to mitigate potential downside risks. The CEO remained optimistic about stable to slightly increasing price trends in the chemical sector, buoyed by anticipated global GDP growth. In response to queries about Sasol's US operations, Grobler highlighted the company's continued business resilience and positive investment outcomes amidst evolving political landscapes. The decision to forego dividends was attributed to macroeconomic uncertainties, with future dividend reinstatement contingent on achieving key financial metrics such as absolute net debt levels and net debt to EBITDA ratios. Grobler's insights on Sasol's improved fiscal metrics and ratings agency responses underscored a positive outlook following the company's financial performance. The CEO acknowledged the importance of stability in South Africa, particularly in addressing the ongoing pandemic, securing investor confidence, and fostering economic growth prospects. Climate change and sustainability emerged as key focus areas for Sasol, with Grobler outlining the company's heightened greenhouse gas reduction targets and forthcoming climate strategy updates. With a commitment to addressing climate challenges and achieving zero emissions goals, Sasol aims to align its operations with long-term sustainability objectives. As Sasol navigates through challenging macroeconomic conditions and sustainability imperatives, the company's strategic vision under Grobler's leadership underscores a commitment to financial prudence, operational resilience, and environmental sustainability.