•
In our Chemicals America segment, the investigation into the Ziegler unit fire was
completed. The root cause relates to turnaround maintenance activities.
Preventative actions to mitigate against a future occurrence have been identified
and are in the process of being implemented. We have been able to restart
alcohol production at 50 percent utilisation during November while isolating the
damaged section for repairs. The timeline to resuming full production rates is
dependent on completion of the repair work which is expected by the end of
quarter 3 in financial year 2023, subject to delivery of equipment. Due to the fire’s
impact on production, Sasol declared force majeure on the supply of U.S. Ziegler
alcohols and derivative products in October 2022. The force majeure will be lifted
as soon as production rates and inventory levels improve. Our sales volume
guidance for Chemicals America remains intact at 5 - 10% higher than prior year.
•
Repair work is nearing completion on Air Separation Unit 2 at ORYX GTL in
Qatar following the fire in June 2022. The facility continues to maintain stable
operations at 60% capacity. Our previous market guidance of 70%-80%
utilisation remains intact for financial year 2023.
Update to market guidance
As a result of the aforementioned challenges, the market guidance mainly associated
with our Southern African value chain, is revised as follows:
-
Mining productivity of 950 – 1 050 t/cm/s, lower than previous guidance of 1 000
– 1 100 t/cm/s;
-
Gas production of 111 – 114 billion standard cubic feet, higher than the previous
guidance of 109 – 112 billion standard cubic feet;
-
Secunda Operations production volumes of 6,6 – 6,9 million tons, lower than
previous guidance of 7,0 – 7,2 million tons;
-
Liquid fuels sales volumes of 52 – 55 million barrels, lower than previous
guidance of 53 – 56 million barrels; and
-
Chemicals Africa sales volumes of 0 – 4% higher than prior year, which is lower
than previous guidance of 6 – 12% higher than prior year.
The market guidance in other areas remain unchanged from that reported in our
production and sales performance metrics announcement of 20 October 2022.
Actions going forward
The safety of our employees remains our top priority. We maintain our focus on safely
improving productivity and coal quality at our Mining business, through our safety
remediation plan and ongoing interventions.
Furthermore, we are embarking on the following interventions at our Mining and SO
facility, in pursuit of safe, stable and sustainable operations: