Sasol Inzalo being a subsidiary and a BBBEE empowerment vehicle of Sasol derives its value from the dividends received from Sasol Limited. It’s share price being affected by the performance of Sasol, as it’s only value generation vehicle. Sasol and Sasol Inzalo have initiated measures since 2012 to streamline its business and sustainably reduce costs. This, coupled with additional response plans to counter the effects of depressed commodity prices, resulted in improved performance in 2016 Through a process involving both internal and external stakeholders,
Sasol’s Board is quoted as having identified and prioritised these four themes:
Managing the business sustainably and profitably in a volatile macro-economic environment
Investing in its people
Unlocking value by optimising and growing its business
Sasol is looking at unlocking Mozambique’s hydrocarbon potential through Sasol’s on-going drilling campaign. The Mozambican gas industry is poised to play an increasingly important role in the Southern African regional energy landscape, and a major part of Sasol’s future. This will bode well for the Sasol Inzalo share price as this translates to growth prospects for the entire Sasol group.