Sasol CEO Simon Baloyi said the South African company may spin off its international chemicals business as soon as 2028, depending on how quickly profit grows.

Shares of the fuel and chemicals firm have gained about 47% this year — heading for its best performance since 2021 — as Baloyi, who became CEO last year, focuses on increasing output from the Secunda manufacturing hub in South Africa and turning around the international chemicals division ahead of a potential listing. That part of the company includes the $12.8-billion sprawling Lake Charles complex in Louisiana.

A listing could happen as early as 2028 or 2029, given efforts to strengthen the unit, Baloyi said in an interview at Bloomberg’s Johannesburg office on Thursday.

It could be listed “once we have a resilient business that can withstand any cycle that comes its way,” and once earnings before interest, taxes, depreciation and amortization near the $800-million to $1-billion range, he said. Another factor that will affect the decision is reducing debt.

The chemicals unit’s Ebitda has improved to around $400 million, though the market remains tough, the CEO said. Major oil producers recently said a downturn in the chemicals sector is showing little sign of easing, amid a surge in Chinese supplies and lacklustre demand.

A turnaround of the business would be a major achievement for Sasol. The Lake Charles chemicals project was originally designed to expand the company’s operational footprint abroad, but suffered from mismanagement issues, hurricanes and billions of dollars in cost overruns that ballooned debt.

In 2020, the year the project reached completion, Sasol sold a $2-billion stake in the US based-chemicals business to form a joint venture with LyondellBasell Industries NV to cut debt. It also accelerated an asset-sale program that wrapped up the following year.

Sasol could make “disciplined” investments to upgrade its US business, according to Baloyi, who has previously said that the international chemicals division may be listed on its own, or merged with another business.

For now, Sasol is focusing on reducing its net debt by around 20% to $3-billion and streamlining the chemicals division.

“We’re closing businesses that don’t make sense, we’re renegotiating contracts — so we try to get off of stuff where we think it’s slowing the business down,” Baloyi said.