Gerhard Engelbrecht's questions to SASOL (SSL) leadership • H2 2025
Question
Gerhard Engelbrecht asked about the drivers behind CapEx coming in below guidance, the rationale for the FY26 volume guidance at Synfuels appearing conservative, details on the South African value chain cost reduction program, and the reason for reduced volume disclosures in the International Chemicals business.
Answer
President & CEO Simon Baloyi, CFO Walt Bruns, and EVP of Operations and Projects Victor Bester explained that lower CapEx resulted from a rigorous capital excellence program and deferring low-risk items, which are now included in the FY26 budget. The Synfuels volume guidance reflects a slow ramp-up of the new destoning plant. The cost reduction program is a comprehensive effort involving capital excellence, supply chain optimization, and natural attrition, which has strong employee support. For International Chemicals, the company has shifted to providing more meaningful EBITDA and margin guidance to reflect its 'value over volume' strategy.