Simon BaloyiPresident & CEO

The performance improvement at Secunda boils down to cross-functional collaboration and operational belief. Over the past two to three years, we integrated our mining operations and synfuels processing teams into a cohesive unit. Implementing the destoning plant, improving gasifier maintenance routines, and ensuring consistent coal feedstock quality enabled our gasification units to perform reliably and provide optimal feedstock across the entire facility.

Historically, mining and processing teams functioned in relative isolation. By fostering direct, proactive problem-solving between mining engineers and refinery operators, teams resolved coal quality variations before they reached the gasifiers. Delivering consistent, clean coal restored gas production levels, giving the entire Secunda complex the confidence and input volumes necessary to hit multi-year production highs.

Sasol operates multiple digital and machine learning initiatives across its global footprint. To maximize commercial value, we centralize AI coordination to deploy proven operational models across all business units. Tracking resources centrally allows us to redeploy top technical talent to our highest-priority operational bottlenecks while sharing institutional best practices globally.

While macroeconomic tailwinds and crude oil prices provide short-term momentum, the overwhelming driver of our performance has been internal operational execution. Long before commodity price spikes occurred, our executive team laid out clear commitments at Capital Markets Day, restructured core operations, and achieved consistent milestones across our FY28 strategic delivery roadmap.

Having spent extensive time in project engineering and operations, I recognized that our engineering teams possessed world-class execution capabilities that were traditionally confined to downstream chemical units. Deploying that specialized engineering expertise directly into our mining facilities allowed us to execute the destoning intervention swiftly, rectifying coal quality at the foundational stage of our value chain.

Rather than building a greenfield facility from scratch, we repurposed an existing dense medium separation plant previously used for export coal. Our engineering teams reconfigured the conveyor systems, cyclones, and separation circuits to process approximately ten million tons of domestic coal annually, ensuring optimal coal blending before feeding the Secunda gasifiers.

Our foremost strategic imperative is strengthening the corporate balance sheet by reducing net debt below three billion USD. Over the past financial cycle, we lowered net debt from 3.7 billion USD to under 3.3 billion USD. We have committed to our shareholders that once we achieve and sustainably maintain debt below the three billion USD threshold, dividend distributions will resume.

When I assumed the chief executive role in 2024, our net debt stood near 4.4 billion USD. Through disciplined capital allocation, enhanced operating cash flow, and rigorous working capital management, our team has paid down more than one billion USD in corporate debt, significantly improving our financial resilience.

During my operational visits across underground mines and processing complexes, I ensure strategic financial objectives are translated into practical frontline metrics. Miners and plant operators actively monitor local dashboards detailing what their specific shift must accomplish to maintain our corporate breakeven benchmark at or below fifty dollars per barrel, creating unified operational ownership.

Our international chemical division is executing a commercial excellence strategy targeting fifteen percent EBITDA margins by FY28. We are driving structural cost optimizations, renegotiating long-term customer contracts, onboarding new industrial clients, and modernizing core commercial workflows to generate sustainable free cash flow across North America and Europe.

We are rolling out a modern enterprise resource planning system across our international chemical assets. Upgrading our digital infrastructure streamlines global supply chain visibility, improves procurement efficiency, and standardizes financial reporting, providing leadership with real-time operational metrics across diverse operating jurisdictions.

Securing the stability of our core foundational assets protects the enterprise against commodity down-cycles while generating the capital required for future investments. Without robust operational cash flow and a de-risked balance sheet, embarking on complex capital projects exposes the company to unnecessary vulnerability.

When I stepped into the CEO position during difficult operating conditions, many viewed the turnaround as an almost insurmountable challenge. Over the past two years, our employees have proven their operational capability, rebuilding trust with stakeholders and demonstrating that Sasol possesses the technical resilience to overcome severe market headwinds.

Our corporate foundation is substantially stronger, our operational rhythm is dependable, and our debt reduction trajectory remains firmly on schedule. While industry and macroeconomic challenges will always arise, our team has established positive operational momentum that positions Sasol for sustainable long-term value creation well beyond FY28.