Sashank's questions to SASOL (SSL) leadership • H1 2023
Question
Sashank from Bank of America inquired about the operational outlook for 2023, asking if the coal supply issue is a structural problem and seeking an update on the ammonia force majeure. He also asked about the Chemicals business outlook in the U.S., noting peer commentary on high inventories and weak demand.
Answer
President and CEO Fleetwood Grobler explained that coal supply is being addressed with short-to-medium-term measures, including external purchases and a new plan focused on improving blended quality through productivity and de-stoning options. Executive VP, Chemicals, Brad Griffith clarified the ammonia force majeure was due to Transnet rail supply issues and they are working to resolve it. Regarding the U.S. Chemicals outlook, Griffith acknowledged tepid demand but expressed confidence in their volume outlook, citing the pending restart of the Ziegler unit and a bottoming out of prices in Asia as key factors.