Sasol’s H1 earnings more than double

South African energy and chemical company, Sasol, has seen a substantial increase in its first-half earnings, despite facing challenges in managing costs and navigating an inflationary environment. Fleetwood Grobler, Chief Executive Officer at Sasol, attributes this success to the company's strategic initiatives, such as the Sasol 2.0 programme, aimed at improving operational efficiency and reducing costs. The company has set clear targets to achieve significant cash cost savings and increase gross margins by 2025. The Sasol 2.0 programme, now in its third year of implementation, has played a crucial role in mitigating the impact of inflationary pressures on the company's cost structures. Grobler emphasizes the importance of building resilience in a lower oil price environment, which necessitates addressing the cost base effectively. By focusing on cash fixed costs, gross margin improvement, working capital management, and capital expenditure, Sasol aims to sustain its profitability and competitiveness in the market. In response to South Africa's energy crisis, Sasol has embarked on a renewable energy procurement initiative to support its decarbonisation goals and reduce greenhouse gas emissions. The company has already committed to purchasing 550 megawatts of renewable energy and plans to reach a total of 1,200 megawatts by partnering with Total and other suppliers. Additionally, Sasol has invested in wind energy projects to further enhance its sustainable energy portfolio. Grobler acknowledges the government's support for empowering businesses to adopt renewable energy solutions and integrate them seamlessly into their operations. Sasol's collaboration with Air Liquide to add 270 megawatts of renewable energy aligns with the company's commitment to environmental sustainability and energy efficiency. Furthermore, Sasol is exploring opportunities to supply excess electricity back to Eskom, leveraging its existing power generation capabilities in Secunda and Sasolburg. The company's history of power agreements with Eskom enables it to contribute to alleviating the pressure on the national grid during times of electricity shortages. Overall, Sasol's proactive approach to cost management, renewable energy adoption, and power generation signifies its commitment to long-term sustainability and operational excellence. By implementing innovative solutions and strategic partnerships, Sasol is well-positioned to navigate challenges, drive growth, and deliver value to its stakeholders.