Sasol CEO, Simon Baloyi signals chemical unit listing before 2030

Key Points

• Sasol eyes global chemicals IPO by 2030 as CEO Simon Baloyi targets recovery and strategic growth from Lake Charles unit. 
• $1 billion earnings boost projected from Sasol’s U.S. chemicals division, positioning it for a potential listing or merger amid improving market margins. 
• Baloyi drives the energy shift, balancing coal-based output with renewable expansion to boost Sasol’s resilience in volatile global markets.

Sasol, the Gauteng-headquartered energy and chemicals powerhouse led by South African executive Simon Baloyi, is accelerating the turnaround of its international chemical business with a clear growth strategy targeted before 2030. Baloyi emphasized this strategic pivot as the division emerges from previous financial challenges, positioning Sasol to capitalize on global market opportunities in energy and chemicals.

The division, anchored by a $12.8 billion Lake Charles Chemicals Project in Louisiana, is expected to contribute up to $1 billion annually to Sasol’s earnings by 2030. “When the market is looking good on the up cycle, it’s a nice time to do that,” Baloyi said in an interview on Monday, pointing to improved margins as a key catalyst for a potential IPO or strategic merger.

International business separated, listing considered

Sasol has already carved out the international chemical operations from its South African base, reinforcing its vision of building a globally competitive, standalone chemicals platform. The unit contributed 13 percent of adjusted earnings in the half-year through December, while overall chemical operations accounted for 40 percent. 

Baloyi said earlier this year that listing options include a direct IPO or merging the chemical business with another global player to scale further. However, weak pricing in the global chemicals market has delayed immediate listing plans.

Navigating challenges amid market pressures

Sasol operates across 33 countries and employs over 30,000 workers, holding a key position in South Africa’s energy and chemicals sectors. The firm’s pioneering synthetic fuels technology remains integral to regional fuel supply and industrial output. 

Since Baloyi’s appointment in April 2024, Sasol has grappled with regional unrest and global economic headwinds. For the second half result 2024, Sasol revenue was R122.1 billion (6.76 million), representing a 10.41 percent decrease from R136.28 billion ($7.54 million) in 2023.

The decrease was primarily due to a 13 percent decline in the average Rand per barrel Brent crude oil price, a significant decline in refining margins and fuel price differentials, and a 5 percent decrease in sales volumes.

Balancing coal reliance with renewables expansion

Sasol is ramping up output at its flagship plant by maximizing coal feedstock use while boosting renewable energy to offset emissions. The world’s top producer of synthetic fuel from coal, this move enhances operational resilience and sustainability amid energy market shifts. These steps position Sasol for growth and value creation in the global chemicals and energy sectors through the next decade.