Sasol eyes separate listing for chemicals business

Sasol may list its international chemical business “towards the end of the decade,” following a turnaround of the business that’s underway, according to CEO Simon Baloyi.

The company expects the unit, which includes a sprawling complex in Louisiana that cost $12.8 billion, to ramp up profitability and contribute as much as $1 billion annually to earnings by 2030.

Sasol separated the international chemical business from operations in South Africa and has set targets to strengthen it as a standalone entity.

There’s little interest in listing international chemicals while prices are soft, Baloyi said Monday in an interview. 

“When the market is looking good on the up cycle, it’s a nice time to do that,” he said.

Chemicals made up about 40% of Sasol’s adjusted earnings in the six months through December. The international business improved to a 13% contribution, with the remainder coming from South African operations.

Baloyi said in a January interview with Bloomberg that international chemicals may be listed on their own or merged with another business.