Sasol posts solid financial results supported by the macroeconomic environment

0
  • Black-owned businesses spend on South Africa up 40% to R33.6 billion out of R55.8 billion spent by B-BBEE
  • R1.2 billion investment in skills development
  • Key terms agreed with IPPs for more than 600 MW of renewable energy for SA operations
  • Strengthened balance sheet with net debt down to US$3.8 billion
  • Dividend reinstatement of R14.70 per share
  • Earnings before interest and tax (EBIT) up more than 100% to R61.4 billion
  • Earnings per share up over 100% to R62.34, core earnings per share up over 100% to R68.54

JOHANNESBURG, August 23, 2022 /PRNewswire/ — Sasol delivered strong financial results amid heightened volatility resulting from ongoing geopolitical tensions, prolonged COVID-19-related lockdowns and global supply chain disruptions. We benefited from higher energy and chemical prices, as well as strong cost and capital discipline through the delivery of our Sasol 2.0 transformation program. This was offset by lower volume performance mainly due to operational challenges encountered during the first half of the year. We saw improved performance with more stable operations in the second half of the year.

Earnings before interest and tax (EBIT) of R61.4 billion increased more than 100% year-on-year, driven by higher crude oil prices, refining margins and oil prices. chemical products. This also resulted in a strong improvement in gross margin compared to the previous year.

Key indicators

2022

2021

To change %

EBIT (million rand)

61,417

16,619

>100

Adjusted EBITDA1 (million rand)

71,843

48,420

48

Overall profit (million rand)

29,735

24,503

21

Basic earnings per share (Rand)

62.34

14.57

>100

Earnings Per Share (Rand)

47.58

39.53

20

Overall basic earnings per share2 (Rand)

68.54

27.74

>100

Dividend per share (Rand)




– Interim (Rand)

– Final (Rand)

14.70

  1. Adjusted EBITDA is calculated by adjusting EBIT for amortization, share-based payments, revaluation items, change in discount rates of environmental provisions, all unrealized translation gains and losses and all unrealized gains and losses on our derivatives and hedging activities. We believe that Adjusted EBITDA is a useful measure of the Group’s underlying cash flow performance. However, it is not a defined term under IFRS and may not be comparable to similarly titled measures presented by other companies. (Adjusted EBITDA constitutes pro forma financial information in terms of the JSE limited filing requirements and should be read in conjunction with the basis of preparation and pro forma financial information as set forth in the complete set of statements audited summaries of financial statements).
  2. Core HEPS is calculated by adjusting overall earnings per share with non-recurring items, revenue losses from large capital projects (greater than R4 billion) that have reached beneficial operation and continue to ramp up, all translation gains and losses (realized and unrealized), all gains and losses on our derivatives and hedging activities (realized and unrealized) and share-based payments when implementing Transactions B -BBEE. Adjustments related to the valuation of our derivatives at the end of the period aim to eliminate earnings volatility, as these instruments are valued using forward curves and other market factors at the reporting date and may vary from period to period. We believe that core comprehensive income is a useful measure of the Group’s sustainable operating performance. (Core HEPS constitutes pro forma financial information in terms of JSE Limited Listings requirements and should be read in conjunction with the basis of preparation and pro forma financial information as set out in the full set of audited condensed financial statements.

Net asset value

2022

2021

To change %

Total assets (million rand)

419,548

360,743

16

Total liabilities (million rand)

226,351

208 272

9

Total equity (million rand)

193 197

152,471

27

Turnover


EBIT/(LBIT)

2021

2022


2022

2021

million rand

million rand


million rand

million rand



Energy business



21,704

24,386

Mining

3,456

3,227

10,990

11,941

Gas

14,622

6,656

60,649

102,964

Fuels

27,959

(18,170)



chemical company



60,597

67,275

Africa

24,072

6,957

29,360

41,926

America

981

8,116

46,038

55,419

Eurasia

7,552

4,680

26

56

Corporate center

(17,225)

5,153

229,364

303,967

Group performance

61,417

16,619

(27,454)

(28,229)

Intersegment turnover


201 910

275,738

External turnover


Dividend

A final gross cash dividend of 1,470 South African cents per share (June 30, 2021 – zero cents per common share) was declared for the year ended June 30, 2022. The cash dividend is payable on ordinary shares and Sasol BEE ordinary shares. The Board is satisfied that the liquidity and solvency of the company, as well as the adequacy of the capital remaining after the payment of the dividend, are sufficient to support current operations for the coming year. The dividend was declared out of retained earnings (income reserves). The South African withholding tax rate on dividends is 20%. As of the reporting date, there are 629,367,128 ordinary shares and 6,331,347 Sasol BEE ordinary shares outstanding. The net amount of the dividend payable to shareholders who are not exempt from withholding tax is 1 176 cents per share, while the amount of dividend payable to shareholders exempt from dividend withholding tax is 1,470 cents per share.

Annual financial statements of Sasol Limited for the year ended June 30, 2022 (the Annual Accounts) have also been published on the Company’s website at: https://www.sasol.com/investor-centre/financial-results.

Copies of the full announcement and annual financial statements may also be requested from the Investor Relations Office, [email protected].

The JSE link is as follows: https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SOL/FY22Result.pdf.

The President and CEO and Chief Financial Officer will share the results on Tuesday, August 23, 2022 at 09:00 (SA time) followed by a conference call.

Please tune in to the call via the webcast link: https://www.corpcam.com/Sasol23082022.

Or by teleconference: https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=3629805&linkSecurityString=7a93dfa35.

Issued by:

Alex AndersonSenior Manager: Group Press Relations and External Relations
Mobile: +27 (0) 71 600 9605; E-mail: [email protected]

Matebello Motloung, Director: Group Media Relations
Mobile: +27 (0) 82 773 9457; E-mail: [email protected]

About Sasol:

Sasol is a global chemicals and energy company. We leverage our knowledge and expertise to integrate sophisticated technologies and processes into operating facilities globally.

We strive to safely and sustainably source, produce and market a range of high quality products worldwide.

Please visit www.sasol.com for more information.

About Sasol Information Privacy Policy:

We would like to inform you of the processing of your personal information by Sasol South Africa Limited and your rights under applicable data protection law, as interpreted and included in Sasol’s Information Privacy Policy.

Within our company, only Sasol Group Media Relations will receive your personal information for the purpose of maintaining the relationship with the recipient as a member of the media. You have the right to request correction or deletion of your personal information stored by us at: Sasol Place, 50 Katherine Street, Sandton in Johannesburg. You also have the right to restrict the processing of your information. To exercise your privacy rights or learn more about the Information Privacy Policy, please contact our Privacy Office at: [email protected].

SOURCESasol

Share.

About Author

Comments are closed.