JOHANNESBURG, Aug. 23,
2023 /PRNewswire/ --
Earnings performance
Sasol's financial results for the year ended 30 June 2023 were impacted by the volatile global
economic landscape and the underperformance of state-owned
enterprises in South Africa, which
continue to impact both our Energy and Chemical businesses. This
impact was, to an extent, offset by a weakening of the Rand/US
Dollar exchange rate.
Earnings before interest and tax (EBIT) of R21,5 billion
declined 65% compared to the prior year, mainly due to the
impairment of assets, inflationary impact on costs, the softening
of the Brent crude oil price and refining margins in the latter
part of the year. Chemicals basket prices were on a declining trend
during 2023, and while we have recently seen some respite with
lower feedstock and energy prices, gross margin and global demand
remained depressed particularly in our American and Eurasian
segments.
Operating profit of R55,4 billion before remeasurement items
increased 8% from the prior year, benefitting from gains on the
translation of monetary assets and liabilities and valuation of
financial instruments and derivative contracts of R6 billion
compared to R17,6 billion losses in 2022. Remeasurement items
contributed a net loss of R33,9 billion compared to a net gain of
R9,9 billion in 2022.The remeasurement items for 2023 mainly relate
to:
- The full impairment of the South African wax CGU of R0,9
billion, the full impairment of the Essential Care Chemicals CGU in
Sasol China of R0,9 billion, and the full reversal of impairment
recognised in 2019 on the Tetramerisation CGU in Lake Charles of
R3,6 billion; and
- The Secunda liquid fuels refinery CGU impairment of R8,1
billion at 31 December 2022 after
being negatively impacted by an update in macroeconomic price
assumptions including higher electricity price forecasts and lower
gas selling prices. An additional impairment of R27,2 billion was
recognised for this CGU resulting in it now being fully impaired.
Sasol continues to advance implementation of its emission reduction
roadmap (ERR) in South Africa to
achieve a 30% reduction in greenhouse gas emissions by 2030 and
comply with the requirements of the National Environmental
Management: Air Quality Act 39 of 2004. The ERR involves the
turning down of boilers, implementing energy efficiency projects,
reducing coal usage and integrating 1 200 MW of renewable energy
into our operations by 2030. With no significant additional gas to
restore volumes back to historic levels, the ERR assumes lower
production volumes post 2030 and also results in increased cost of
coal and capital expenditure. Optimisation of the ERR is ongoing
with several technology and feedstock solutions underway to
partially recover volume post 2030, however the maturity thereof
needs to be further progressed before it can be incorporated in the
impairment calculation. Although the chemical CGUs in the Secunda
complex were also negatively impacted, their respective recoverable
amounts remained above carrying values given the products' higher
derivative value.
In addition, profit on disposal of businesses of R8,5 billion
was recorded in 2022 compared to R0,7 billion for 2023.
Key
metrics
|
2023
|
2022
|
Change
%
|
EBIT (R
million)
|
21
520
|
61 417
|
(65)
|
Headline earnings (R
million)
|
33
777
|
29 735
|
14
|
Basic earnings per
share (Rand)
|
14,00
|
62,34
|
(78)
|
Headline earnings per
share (Rand)
|
53,75
|
47,58
|
13
|
Interim dividend (Rand
per share)
|
7,00
|
-
|
100
|
Final dividend (Rand
per share)
|
10,00
|
14,70
|
(32)
|
Net asset
value
|
2023
|
2022
|
Change
%
|
Total assets (R
million)
|
433 838
|
419 548
|
3
|
Total liabilities (R
million)
|
232 314
|
226 351
|
(3)
|
Total equity (R
million)
|
201
524
|
193
197
|
4
|
Turnover
|
|
EBIT/(LBIT)1
|
2022
|
2023
|
|
2023
|
2022
|
Restated
|
|
|
|
|
R
million
|
R
million
|
|
R
million
|
R
million
|
|
|
Energy
business
|
|
|
24 386
|
27
666
|
Mining
|
2 580
|
3 456
|
11 941
|
11
988
|
Gas
|
6 432
|
14 622
|
99 972
|
118
708
|
Fuels
|
(7 128)
|
27 959
|
|
|
Chemicals
business
|
|
|
67 275
|
70
586
|
Africa
|
17
669
|
24 072
|
41 926
|
44
942
|
America
|
(543)
|
981
|
55 419
|
48
194
|
Eurasia
|
(1 188)
|
7 552
|
56
|
-
|
Corporate
Centre
|
3 698
|
(17 225)
|
300 975
|
322
084
|
Group
performance
|
21
520
|
61 417
|
(28 229)
|
(32 388)
|
Intersegmental
turnover
|
|
272 746
|
289
696
|
External
turnover
|
|
1 Loss
before interest and tax
|
Sasol's results contain an adjustment in respect of an error in
the 2022 financial year related to purchases and sales of inventory
with the same counterparty that were entered into in contemplation
of one another to mitigate production shortfalls and facilitate
sales to customers in the coastal areas of South Africa. These transactions were recorded
on a gross basis instead of being accounted for as a single
exchange transaction resulting in a reclassification between
turnover and materials, energy and consumables used. Earnings were
not impacted. The Company evaluated the effect of the prior period
adjustments, both quantitatively and qualitatively, and concluded
that the correction neither had a material impact on, nor requires
amendment of, any of the Company's previously issued or filed
financial statements taken as a whole.
Dividend
The Sasol Limited board of directors (the Board) declared a
final gross cash dividend of South African 1 000 cents per share (2022 – 1 470 cents per ordinary share) for the year ended
30 June 2023. The cash dividend is payable on the
ordinary shares and the Sasol BEE ordinary shares. The Board is
satisfied that the Company is liquid and solvent, and that capital
remaining after payment of the interim dividend is sufficient to
support the current operations for the coming year. The final
dividend has been declared out of retained earnings (income
reserves). The South African dividend withholding tax rate is 20%.
At the declaration date, there are 634 336 265 ordinary
and 6 331 347 Sasol BEE ordinary shares in issue. The net
final dividend amount payable to shareholders who are not exempt
from the dividend withholding tax, is 800
cents per share, while the dividend amount payable to
shareholders who are exempt from dividend withholding tax is 1
000 cents per share.
The salient dates for
holders of ordinary shares and Sasol BEE ordinary shares for the
year ended 30 June 2023 are:
|
Declaration
date
|
Wednesday, 23 August
2023
|
Last day for trading to
qualify for and participate in the interim dividend (cum
dividend)
|
Tuesday, 12 September
2023
|
Trading ex dividend
commences
|
Wednesday, 13 September
2023
|
Record date
|
Friday, 15 September
2023
|
Dividend payment date
(electronic and certificated register)
|
Monday, 18 September
2023
|
The salient dates for
holders of American Depository Receipts for the year ended
30 June 2023 are:1
|
Ex dividend on New York
Stock Exchange (NYSE)
|
Thursday, 14 September
2023
|
Record date
|
Friday, 15 September
2023
|
Approximate date for
currency conversion
|
Tuesday, 19 September
2023
|
Approximate dividend
payment date
|
Friday, 29 September
2023
|
1 All
dates approximate as the NYSE sets the record date after receipt of
the dividend declaration.
|
The Company's tax number is 9520018608.
Short-form statement
This announcement is the responsibility of the Board and is only
a summary of the information in Sasol Limited's Annual Financial
Statements for the year ended 30 June
2023 (the Annual Financial Statements). The Annual Financial
Statements have been published and can be found on the company's
website, https://www.sasol.com/investor-centre/financial-results,
and can also be viewed on the JSE link,
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/SOL/FY23Result.pdf
The Annual Financial Statements have been audited by the Group's
auditors, PricewaterhouseCoopers Inc. (PwC), who expressed an
unmodified opinion thereon. Any investment decision should be based
on the information contained in the Annual Financial Statements.
Copies of the Annual Financial Statements may also be requested
from the Investor Relations office, investor.relations@sasol.com or
+27 10 344 9280.
Financial numbers in this announcement have been correctly
extracted from the audited Annual Financial Statements. This
announcement does not include the information required pursuant to
paragraph 16A(j) of IAS 34 'Interim Financial Reporting'. The
information in this announcement has not been audited and reported
on by Sasol Limited's external auditors.
Important information
Sasol's President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer,
Hanré Rossouw, will present the results at 09h00 (SA time) on
23 August 2023, followed by a market
call to address questions.
Please connect to the call via the webcast link:
https://www.corpcam.com/Sasol23082023
or via teleconference call link:
https://eu01.z.antigena.com/l/8Yc4uSEhZxbc1_O-KegnGgSyQn2FVZK57LWXak7vPQxUd-5z~yu4K02l6z_-CBA6Cqc04j~PN6fvK~V6SXF0XMC5ROR4XFsfJ-h5B_hG5gAbOa56lcRwXqRdwf7-ef09wB8fe3avulwTcJc-mX0Pv8NwDm6a1AJhLKp-NUNGGFbxbPPN3XsHZ187q1GIuJVmwGAS4GV74SdmZPQtoync4sKHWGFWyJGIY8nVmF4z7W4uFAXhU7pFj8mkUUu2uVqpJh
A recording of the presentation will be available on the website
thereafter.
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, VP Investor Relations
Officer
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are
not historical facts and relate to analyses and other information
which are based on forecasts of future results and estimates of
amounts not yet determinable. These statements may also relate to
our future prospects, expectations, developments, and business
strategies. Examples of such forward-looking statements include,
but are not limited to, the impact of the novel coronavirus
(COVID-19) pandemic, and measures taken in response, on Sasol's
business, results of operations, markets, employees, financial
condition and liquidity; the effectiveness of any actions taken by
Sasol to address or limit any impact of COVID-19 on its business;
the capital cost of our projects and the timing of project
milestones; our ability to obtain financing to meet the funding
requirements of our capital investment programme, as well as to
fund our ongoing business activities and to pay dividends;
statements regarding our future results of operations and financial
condition, and regarding future economic performance including cost
containment, cash conservation programmes and business optimisation
initiatives; recent and proposed accounting pronouncements and
their impact on our future results of operations and financial
condition; our business strategy, performance outlook, plans,
objectives or goals; statements regarding future competition,
volume growth and changes in market share in the industries and
markets for our products; our existing or anticipated investments,
acquisitions of new businesses or the disposal of existing
businesses, including estimates or projection of internal rates of
return and future profitability; our estimated oil, gas and coal
reserves; the probable future outcome of litigation, legislative,
regulatory and fiscal developments, including statements regarding
our ability to comply with future laws and regulations; future
fluctuations in refining margins and crude oil, natural gas and
petroleum and chemical product prices; the demand, pricing and
cyclicality of oil, gas and petrochemical product prices; changes
in the fuel and gas pricing mechanisms in South Africa and their effects on prices, our
operating results and profitability; statements regarding future
fluctuations in exchange and interest rates and changes in credit
ratings; total shareholder return; our current or future products
and anticipated customer demand for these products; assumptions
relating to macroeconomics; climate change impacts and our climate
change strategies, our development of sustainability within our
Energy and Chemicals Businesses, our energy efficiency improvement,
carbon and greenhouse gas emission reduction targets, our net zero
carbon emissions ambition and future low-carbon initiatives,
including relating to green hydrogen and sustainable aviation
fuel; our estimated carbon tax liability; cyber security; and
statements of assumptions underlying such statements. Words such as
"believe", "anticipate", "expect", "intend", "seek", "will",
"plan", "could", "may", "endeavour", "target", "forecast" and
"project" and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of
identifying such statements. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and there are risks that the predictions, forecasts,
projections, and other forward-looking statements will not be
achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, our actual results may
differ materially from those anticipated. You should understand
that a number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements. These factors and others are discussed more fully in
our most recent annual report on Form 20-F filed on 31 August 2022 and in other filings with the
United States Securities and Exchange Commission. The list of
factors discussed therein is not exhaustive; when relying on
forward-looking statements to make investment decisions, you should
carefully consider foregoing factors and other uncertainties and
events, and you should not place undue reliance on forward-looking
statements. Forward-looking statements apply only as of the date on
which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new
information, future events or otherwise.
Please note: One billion is defined as one thousand
million, bbl – barrel, bscf – billion standard cubic feet, mmscf –
million standard cubic feet, oil references brent crude, mmboe –
million barrels oil equivalent. All references to years refer to
the financial year ended 30 June. Any reference to a calendar
year is prefaced by the word "calendar".
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SOURCE Sasol Limited