Sasol to give update on Lake Charles partner in 6-8 weeks

Petroleum giant Sasol has unveiled its strategic plan, SASOL 2.0, aimed at driving the company towards profitability in a challenging economic environment. The plan includes significant restructuring measures such as job cuts, corporate leaner structures, and potential rights issues. Fleetwood Grobler, President and CEO of Sasol, joined CNBC Africa to discuss the details of the plan and the company's future prospects. Sasol's decision to implement SASOL 2.0 comes as the company grapples with high debt levels and fluctuating oil prices. The strategic overhaul is expected to position Sasol as a resilient and value-focused company capable of thriving in a world where oil prices hover around $45.00 per barrel. While the plan involves making tough sacrifices, including job cuts, Sasol is focused on ensuring the long-term sustainability of the company. One of the key aspects of SASOL 2.0 is the reduction of the company's workforce. While specific numbers have not been provided yet, Sasol is planning a global review of its operations to identify areas where headcount can be optimized. The restructuring will start at the corporate center, making it leaner and more efficient. The plan emphasizes a shift towards greater efficiency and optimization opportunities across all business units, aiming to streamline operations and reduce costs in a challenging economic climate. In addition to workforce reductions, Sasol is also considering a potential rights issue as part of its self-help measures. The company is currently focusing on achieving $1 billion in savings this financial year, with another billion dollars in savings planned for the next financial year. The decision to pursue a rights issue will be reevaluated based on the success of Sasol's asset disposal program. While no specific timeline has been provided for the rights issue, management is preparing for the possibility as part of their strategic financial planning. Furthermore, Sasol has decided to exit its West African oil operations as part of its broader restructuring efforts. The company will no longer pursue growth through oil exploration in West Africa, shifting its focus to gas exploration in Mozambique and Southern Africa. By refocusing its efforts on gas, Sasol aims to enhance its long-term sustainability and reduce its greenhouse gas emissions. The decision to exit oil operations in West Africa is expected to result in significant cost savings for the company. Lastly, Sasol provided an update on its Lake Charles project in the United States. While the company has seen progress in certain units of the project, Sasol remains open to potential partnerships to optimize the project's base chemicals assets. Negotiations with potential partners are ongoing, with solid interest from parties. Sasol plans to make further announcements regarding potential partnerships within the next six to eight weeks, as the process reaches a more advanced stage. In conclusion, Sasol's SASOL 2.0 strategic plan reflects the company's commitment to adapting to current economic challenges and positioning itself for long-term success. By implementing significant restructuring measures, including job cuts, corporate leaner structures, and potential rights issues, Sasol aims to streamline its operations, reduce costs, and drive profitability in a challenging business environment. With a focus on sustainability and efficiency, Sasol is taking proactive steps to navigate through turbulent times and emerge stronger on the other side.