Description
SWOT ANALYSIS OF SASOL LIMITED
Sasol Ltd
Parent Company
Sasol Ltd
Category
Oil and Gas/Chemical
Sector
Energy
Tagline/ Slogan
Reaching new frontiers
USP
Largest producer of synthetic fuel/motor fuel from coal STP
Segment
Corporates and individuals with energy/chemical requirements
Enterprises which require petroleum products, other fuels and Target Group chemicals
Positioning
An integrated energy and chemical business group SWOT Analysis
1. Sasol has more than 34,000 employees working in 38 countries across diverse geographic markets (Africa, Europe, Americas and Asia-Pacific) which helps it gain sustainable revenue streams and reduces the risks associated with depending on a concentrated market 2. A broad and diverse business portfolio (mining, gas, synthetic fuels and chemicals) enables it to diversify business risks and offset downturns in any one segment 3. Sasol’s integrated operations across Africa and other international markets enable it to spread its cost base and attain operating efficiencies, thus expanding its scale Strength 4. It is one of the largest corporate tax payer in South Africa
Weakness
1. Power generation/supply interruption problems from Eskom (South African state owned) on which Sasol largely depends
2. Weak presence in the fast growing markets of Asia-Pacific as compared to Europe, America and Africa deprives it of an opportunity to boost its revenue growth 3. Legal issues from allegations of collusion and excessive pricing triggering Govt. scrutiny) dilutes its brand identity and increases their operational expenses
1. Growing demand for coal conversion technologies can create growth opportunities for Sasol internationally due to its significant capabilities in this field, namely its proprietary Coal-to-Liquid & Coalto-Gas technologies 2. Sasol’s efforts to improve Carbon and Energy efficiency (through MOUs with Norwegian state owned Gassanova, which could help Sasol participate in the currently under-construction European CO2 Technology Center, or its MOU with the Indonesian Govt. for a screening study into the viability of a Coal-to-Liquid project there, using Sasol’s proprietary technology) can enhance its environmentfriendly brand image 3. Sasol has been expanding its foreign operations (in the US, and in various parts of Africa) which can be leveraged to further its revenues and business 4. A growing global energy demand (linked to the demand for oil, which is one of Sasol’s highest revenue earners) can help Sasol Opportunity leverage its oil operations
1. Stringent Govt. Regulations in South Africa (eg. The Mineral and Petroleum Resources development Act, 2004, the Petroleum Products Amendment Act and The Petroleum Pipelines Act etc) may impose on Sasol, new liabilities or increase operating expenses, thereby resulting in a decline in its profitability 2. Volatility in refining margins/fuel prices may have an adverse impact on Sasol’s revenues, as a huge portion of Sasol’s turnover is from its sale of petroleum products 3. Sasol earns a significant portion of its revenues from international operations, and hence, risks related to such foreign operations can be Threats a threat to Sasol’s business Competition
1. ExxonMobil Corporation 2. Royal Dutch Shell plc. Competitors 3. Chevron Phillips Chemical Company LLC
4. BP plc
doc_476040587.docx
SWOT ANALYSIS OF SASOL LIMITED
Sasol Ltd
Parent Company
Sasol Ltd
Category
Oil and Gas/Chemical
Sector
Energy
Tagline/ Slogan
Reaching new frontiers
USP
Largest producer of synthetic fuel/motor fuel from coal STP
Segment
Corporates and individuals with energy/chemical requirements
Enterprises which require petroleum products, other fuels and Target Group chemicals
Positioning
An integrated energy and chemical business group SWOT Analysis
1. Sasol has more than 34,000 employees working in 38 countries across diverse geographic markets (Africa, Europe, Americas and Asia-Pacific) which helps it gain sustainable revenue streams and reduces the risks associated with depending on a concentrated market 2. A broad and diverse business portfolio (mining, gas, synthetic fuels and chemicals) enables it to diversify business risks and offset downturns in any one segment 3. Sasol’s integrated operations across Africa and other international markets enable it to spread its cost base and attain operating efficiencies, thus expanding its scale Strength 4. It is one of the largest corporate tax payer in South Africa
Weakness
1. Power generation/supply interruption problems from Eskom (South African state owned) on which Sasol largely depends
2. Weak presence in the fast growing markets of Asia-Pacific as compared to Europe, America and Africa deprives it of an opportunity to boost its revenue growth 3. Legal issues from allegations of collusion and excessive pricing triggering Govt. scrutiny) dilutes its brand identity and increases their operational expenses
1. Growing demand for coal conversion technologies can create growth opportunities for Sasol internationally due to its significant capabilities in this field, namely its proprietary Coal-to-Liquid & Coalto-Gas technologies 2. Sasol’s efforts to improve Carbon and Energy efficiency (through MOUs with Norwegian state owned Gassanova, which could help Sasol participate in the currently under-construction European CO2 Technology Center, or its MOU with the Indonesian Govt. for a screening study into the viability of a Coal-to-Liquid project there, using Sasol’s proprietary technology) can enhance its environmentfriendly brand image 3. Sasol has been expanding its foreign operations (in the US, and in various parts of Africa) which can be leveraged to further its revenues and business 4. A growing global energy demand (linked to the demand for oil, which is one of Sasol’s highest revenue earners) can help Sasol Opportunity leverage its oil operations
1. Stringent Govt. Regulations in South Africa (eg. The Mineral and Petroleum Resources development Act, 2004, the Petroleum Products Amendment Act and The Petroleum Pipelines Act etc) may impose on Sasol, new liabilities or increase operating expenses, thereby resulting in a decline in its profitability 2. Volatility in refining margins/fuel prices may have an adverse impact on Sasol’s revenues, as a huge portion of Sasol’s turnover is from its sale of petroleum products 3. Sasol earns a significant portion of its revenues from international operations, and hence, risks related to such foreign operations can be Threats a threat to Sasol’s business Competition
1. ExxonMobil Corporation 2. Royal Dutch Shell plc. Competitors 3. Chevron Phillips Chemical Company LLC
4. BP plc
doc_476040587.docx