JOHANNESBURG, Aug. 16, 2021 /PRNewswire/ -- Sasol delivered a
strong set of results for the year ended 30
June 2021. Our earnings before interest and tax (EBIT) of
R16,6 billion increased by more than 100% compared to the prior
year. This performance was underpinned by a strong cost, working
capital and capital expenditure performance, despite the continued
impact of the COVID-19 pandemic and adverse weather events.
A notable gross margin recovery was recorded in the second half
of the financial year, supported by the combined impact of higher
Brent crude oil and chemicals prices, offset by a stronger rand/US
dollar exchange rate.
Our earnings were mainly impacted by the following non-cash
adjustments the net of which amounted to R15,4 billion:
- Net impairments of R28,7 billion mainly due to adjustments to
our long-term exchange rate outlook and higher cost to procure gas
over the longer term;
- Net profit on disposal of businesses of R2,2 billion, including
the Air Separation Units;
- R3,4 billion gain on the realisation of the foreign currency
translation reserve (FCTR), mainly on the divestment of a 50%
interest in the LCCP Base Chemicals business;
- Gains of R5,5 billion on the translation of monetary assets and
liabilities due to a 18% strengthening of the closing rand/US
dollar exchange rate compared to June
2020; and
- Gains of R2,3 billion on the valuation of financial instruments
and derivative contracts.
Key
metrics
|
2021
|
2020
|
Change
%
|
|
Restated
|
|
EBIT/(LBIT) (R
million)
|
16
619
|
(111 926)
|
>100
|
Adjusted
EBITDA1(R million)
|
48
420
|
34 976
|
38
|
Headline
earnings/(loss) (R million)
|
24
503
|
(7 106)
|
>100
|
Basic earnings/(loss)
per share (Rand)
|
14,57
|
(148,49)
|
>100
|
Headline
earnings/(loss) per share (Rand)
|
39,53
|
(11,50)
|
>100
|
Core headline
earnings per share2 (Rand)
|
27,74
|
15,08
|
84
|
Dividend per share
(Rand)
|
|
|
|
- Interim
(Rand)
|
-
|
-
|
-
|
- Final
(Rand)
|
-
|
-
|
-
|
|
1. Adjusted
EBITDA is calculated by adjusting EBIT for depreciation,
amortisation, share-based
payments, remeasurement items, change in discount rates of
environmental provisions, all
unrealised translation gains and losses, and all unrealised gains
and losses on our derivatives
and hedging activities. We believe Adjusted EBITDA is a useful
measure of the Group's underlying
cash flow performance. However, this is not a defined term under
IFRS and may not be comparable
with similarly titled measures reported by other companies.
(Adjusted EBITDA constitutes pro forma
financial information in terms of the 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
summarised financial statements).
2
Core HEPS is calculated by adjusting headline earnings per share
with non-recurring items, earnings
losses of significant capital projects (exceeding R4 billion) which
have reached beneficial operation and
are still ramping up, all translation gains and losses (realised
and unrealised), all gains and losses on
our derivatives and hedging activities (realised and unrealised),
and share-based payments on
implementation of B-BBEE transactions. Adjustments in relation to
the valuation of our derivatives at
period end are to remove volatility from earnings as these
instruments are valued using forward curves
and other market factors at the reporting date and could vary from
period to period. We believe core
headline earnings are a useful measure of the GroupĀ“s sustainable
operating performance. (Core HEPS
constitutes pro forma financial information in terms of the 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 summarised financial statements.
|
Net asset
value
|
2021
|
2020
|
Change
%
|
|
Restated
|
|
Total assets (R
million)
|
360 743
|
474 535
|
-24
|
Total liabilities (R
million)
|
208 272
|
318 618
|
53
|
Total equity (R
million)
|
152
471
|
155
917
|
-2
|
Turnover
|
|
EBIT/(LBIT)
|
2020
|
2021
|
|
2021
|
2020
|
|
|
|
|
Restated
|
R
million
|
R
million
|
|
R
million
|
R
million
|
|
|
Energy
business
|
|
|
19 981
|
21
704
|
Mining
|
3
227
|
2 756
|
12 419
|
10
990
|
Gas
|
6
656
|
5 527
|
62 553
|
60
649
|
Fuels
|
(18
170)
|
(11 609)
|
|
|
Chemicals
business
|
|
|
54 310
|
60
597
|
Africa
|
6
957
|
(17 035)
|
28 809
|
29
360
|
America
|
8
116
|
(77 556)
|
39 989
|
46
038
|
Eurasia
|
4
680
|
(894)
|
30
|
26
|
Corporate
Centre
|
5
153
|
(13 115)
|
218
001
|
229
364
|
Group
performance
|
16
619
|
(111 926)
|
(27 634)
|
(27
454)
|
Intersegmental
turnover
|
|
190 367
|
201
910
|
External
turnover
|
|
Balance sheet management
Cash generated by operating activities increased by 6% to R45,1
billion compared to the prior year. This, together with the asset
divestment programme, enabled the repayment of approximately R81
billion of debt, including the settlement of our rand denominated
banking facilities of approximately R4 billion.
Actual capital expenditure amounted to R16,4 billion compared to
R35,2 billion during 2020. The reduction in capital expenditure was
carefully executed as a result of our optimised risk management
focus whilst ensuring asset integrity and safety were not
compromised.
Our net debt to EBITDA ratio at 30 June
2021, based on the revolving credit facility (RCF) and US
dollar term loan covenant definition, was 1,5 times, significantly
below the agreed threshold level. Although this ratio meets our
targeted net debt to EBITDA level, we will continue with our
efforts to reduce leverage and absolute debt levels further. This
will create valuable financial flexibility as we execute our Future
Sasol strategy in the midst of an uncertain macroeconomic
environment. Our objective remains to steer the balance sheet
metrics toward restoration of our investment grade levels.
During the year bonds of US$1,5
billion (R21,4 billion) were issued and listed on the New
York Stock Exchange. At 30 June 2021,
our total debt was R102,9 billion compared to R189,7 billion at
30 June 2020. During the year, we
utilised proceeds from our asset divestments to repay the US dollar
syndicated loan, a portion of our RCF and term loans, reducing our
US dollar denominated debt by almost R76 billion (US$5 billion).
Our gearing decreased from 117,0% at 30
June 2020 to 61,5% at 30 June
2021 mainly due to repayment of US dollar debt and a
stronger closing rand/US dollar exchange rate.
As at 30 June 2021, our liquidity
headroom was R84 billion (US$5,9
billion), well above our outlook to maintain liquidity in
excess of US$1 billion, with
available rand and US dollar-based funds improving as we advance
our focused management actions. We have no significant debt
maturities before November 2022 when
the US$1 billion bond becomes due.
In line with our financial risk management framework, we
continue to make good progress with hedging our foreign currency,
crude oil and ethane exposure. We have been successful in hedging
our total oil exposure for 2022 which increases the certainty of
future cash flows to reduce debt levels and enable us to execute on
our Future Sasol strategy. For further details of our open hedge
positions we refer you to our Analyst Book (www.sasol.com).
Dividend
The restoration of dividends is a key priority, but in the
context of the high level of macroeconomic uncertainty the Board
believes it is prudent not to declare a dividend at this stage.
Changes in Directors
The following change to the Board occurred after the publication
of the Company's interim financial results on 22 February 2021:
Mr S Subramoney was appointed as independent non-executive
director and member of the Audit Committee with effect from
1 March 2021. The Company announced
the appointment of Ms GMB Kennealy, an independent non-executive
director, as Chairman of the Audit Committee effective 1 September 2021 upon the retirement of Mr C
Beggs as independent non-executive director and Chairman of the
Audit Committee on 31 August 2021.
Mr P Victor has informed the Company that he will step down as
Chief Financial Officer (CFO) and executive director of Sasol
Limited on 30 June 2022. Mr H Rossouw
has been appointed as CFO designate and executive director
designate of Sasol to succeed Mr Victor. He will join Sasol on
4 April 2022 and will succeed Mr
Victor as executive director and CFO on 1
July 2022.
Short-form statement
This announcement is the responsibility of the directors. The
information in this short-form announcement, including the
financial information on which the outlook is based, has not been
audited and reported on by Sasol Limited's external auditors.
Financial figures in this announcement have been correctly
extracted from the audited financial results. The audited financial
results have been audited by the group's auditors, PwC who
expressed an unmodified opinion thereon. A key audit matter
relating to "Impairment assessment of property, plant and equipment
and investments in subsidiaries" is addressed in PwC's independent
auditor's report. This announcement does not include the
information required pursuant to paragraph 16A(j) of IAS 34
'Interim Financial Reporting. It is only a summary of the
information contained in the full announcement and does not contain
full or complete details. Any investment decision should also take
into consideration the information contained in the full
announcement, published on SENS on 16 August
2021, via the JSE link. The full announcement and the FY21
audited financial results, which includes the auditor's report,
will be available on the Company's website at
https://www.sasol.com/investor-centre/financial-reporting/annual-integrated-reporting-set.
Capital Markets Day
Sasol's President and Chief Executive Officer, Fleetwood Grobler, together with his executive
leadership team will be hosting a virtual Capital Markets Day,
including a Q&A session, on Wednesday, 22 September 2021 at 12:00 (SA time).
Please join us for our 2021 virtual Capital Markets Day where we
will provide an update on Sasol's longer-term strategy and
sustainability ambitions, including our transition pathway until
2050.
The agenda and participation details will follow closer to the
event. Please direct any queries to: investor.relations@sasol.com
or call +27 10 344 9280.
Note to Editors:
The pre-recorded presentation is available on the following
link:
https://www.corpcam.com/Sasol16082021
The JSE link is as
follows: https://senspdf.jse.co.za/documents/2021/JSE/ISSE/SOL/FY21Result.pdf
The President and Chief Executive Officer and Chief Financial
Officer will host a conference call via webcast on Monday,
16 August 2021, at 15:00 (SA time) to
discuss the results and give an update of the business.
Live conference call link:
https://www.corpcam.com/Sasol16082021Q
Conference call
details:
|
|
|
|
Monday, 22 February
2021
|
Time
|
|
|
South
Africa
|
15:00
|
|
|
United
Kingdom
|
13:00
|
|
|
United States
(ET)
|
08:00
|
|
|
|
|
|
|
Issued by:
Matebello Motloung
Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256
Mobile: +27 (0) 82 773 9457
matebello.motloung@sasol.com
Alex Anderson
Senior Manager: Group External Communication
Direct telephone: +27 (0) 10 344 6509
Mobile: +27 (0) 71 600 9605
alex.anderson@sasol.com