Sasol Eyes Potential Chemical Unit Listing by 2030 After Profit Push

Sasol may list its international chemical business by the end of this decade, according to CEO Simon Baloyi, as the South African energy and chemical giant seeks to boost returns and streamline operations.

Speaking in an interview on Monday, Baloyi said the company is closely watching market conditions and is aiming to complete the turnaround of its international chemical operations before moving ahead with a listing.

“We’re not in a rush,” Baloyi said. “When the market is looking good on the up cycle, it’s a nice time to do that.”

Turning the Corner

The international chemical business — which includes Sasol’s massive $12.8 billion complex in Lake Charles, Louisiana — has been gradually improving its performance. The unit contributed 13% of Sasol’s adjusted earnings in the six months through December 2024, while chemicals overall made up about 40% of total adjusted earnings during that period.

Baloyi emphasized that Sasol has taken steps to separate the international chemical operations from its South African businesses. This strategic shift is aimed at enabling the division to operate independently and ultimately stand on its own.

A Billion-Dollar Target

Looking ahead, Sasol expects its international chemical operations to ramp up and generate up to $1 billion in annual earnings by 2030. The company is setting profitability targets and refining its strategy to enhance the unit’s performance.

Baloyi also noted that a future listing could take the form of either a standalone IPO or a merger with another entity, depending on market conditions and strategic fit.

Market Watch

For now, Sasol is holding off any immediate plans to list, especially while global chemical prices remain soft.

The company remains focused on improving its financial position, growing earnings, and ensuring its international unit becomes a robust, investable business. Once market conditions are favorable, Sasol believes it will be well-positioned to capitalize.

Sasol’s potential move to list its international chemical business reflects a broader strategy to unlock value and streamline global operations. While the exact timing depends on market dynamics, investors and analysts will be watching closely as the company targets stronger returns and greater operational independence for its global chemical arm.

{Source: MoneyWeb}

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