Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes:
JSE: SOL
NYSE: SSL
Sasol Ordinary ISIN codes:
ZAE000006896
US8038663006
Sasol BEE Ordinary Share code:
JSE: SOLBE1
Sasol BEE Ordinary ISIN code:
ZAE000151817
(“Sasol” or “Company”)
TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020
Sasol will announce group financial results for the year ended 30 June 2020 (2020 financial year) that
were impacted by the COVID-19 pandemic and a severe decline in crude oil and chemical product
prices. The impact of the weak macro-economic environment was partly mitigated by a strong cash
cost, working capital and capital expenditure performance.
Shareholders are advised that, for the 2020 financial year:
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The loss per share is expected to be between R146,75 and R148,15 compared to the prior year
earnings per share of R6,97 (representing a decline of more than 100%);
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Headline loss per share is expected to be between R8,72 and R14,86 compared to the prior year
headline earnings per share (HEPS) of R30,72 (representing a decline of more than 100%); and
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Core HEPS (CHEPS**) is expected to be between R11,02 and R18,56 compared to the prior year
CHEPS of R37,65.
Sasol’s adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA*) is
expected to decline by between 17% and 37% from R47,6 billion in the prior year, to between R30,0
billion and R39,5 billion. This results from a 18% decrease in the rand per barrel price of Brent crude
oil coupled with much softer global chemical and refining margins impacting our gross margins
adversely, especially during the second half of the 2020 financial year. The cash fixed cost
performance for the second half of the year improved markedly, partly offsetting the impact of lower
gross margins.
The loss per share was as a result of the decrease in the adjusted EBITDA as well as notable non-
cash adjustments to earnings. The largest contributor relates to impairments of a number of cash
generating units following the decline in the long-term macro-economic outlook, and the fair value
impact following the commencement of partnering discussions for our Base Chemicals assets in the
United States. Aggregate pre-tax impairment charges of approximately R112 billion have been
recognised in the 2020 financial year. The impairments and fair value adjustments have impacted the
reporting segments as follows:
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Energy R12,5 billion across the portfolio;
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Base Chemicals R71,3 billion, primarily in the United States; and
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Performance Chemicals R27,7 billion, primarily relating to its share of ethylene producing assets
in the United States.
Other non-cash adjustments include:
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Unrealised losses of R7,4 billion on the translation of monetary assets and liabilities due to the
23% weakening of the closing rand/US dollar exchange rate; and
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Unrealised losses of R4,8 billion on the valuation of financial instruments and derivative contracts.
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Depreciation of R3,9bn attributable to those Lake Charles Chemicals Project (LCCP) units that
reached beneficial operation.
The financial information on which this trading statement is based has not been reviewed and
reported on by the Company's external auditors.