JOHANNESBURG, Feb. 21,
2023 /PRNewswire/ --
Earnings performance
Sasol delivered a mixed set of results for the first six months
of 2023, supported by oil and refining tailwinds offset by lower
volumes and higher feedstock costs. The impact from the global
weaker economic growth, disrupted supply chains, depressed chemical
prices and the resultant higher input costs impacted the Chemicals
business negatively. Performance of our South African value chain
was muted given the scheduled total East factory shutdown at
Secunda and operational variability experienced, mainly due to
lower productivity and coal quality in our Mining operations,
contributing to lower volumes for the six months. The safety of our
people and stability of our operations is a key priority. We
continue to focus our efforts on improving business performance to
maximise profitability for the full year.
Earnings before interest and tax (EBIT) of R24,2 billion
remained in line with the prior period, mainly due to a strong
pricing environment which was offset by lower volumes and
increasing input cost pressures, with declining demand for
chemicals globally. Earnings benefitted from gains of R5,1 billion
on the valuation of financial instruments and derivative contracts
offset by remeasurement items of R6,4 billion.
Remeasurement items include impairments of our Secunda liquid
fuels refinery cash generating unit (CGU) (R8,1 billion),
South African Wax CGU (R0,9 billion) and China Essential Care
Chemicals CGU (R0,9 billion) and a reversal of impairment of our
Tetramerization CGU (R3,6 billion) in the
United States of America, as well as a profit on partial
disposal of an interest in the Area A5-A offshore exploration
license in Mozambique (R266
million) and the realisation of foreign currency translation
reserves following the liquidation of subsidiaries (R251
million).
Key
metrics
|
Half
year
31 Dec
2022
|
Half
year
31 Dec
2021
|
Change
%
|
EBIT (R
million)
|
24
204
|
24 309
|
(0,4)
|
Adjusted
EBITDA1 (R million)
|
31
995
|
31 803
|
0,6
|
Headline earnings (R
million)
|
19
389
|
9 499
|
>100
|
Basic earnings per
share (Rand)
|
23,23
|
23,98
|
(3,1)
|
Headline earnings per
share (Rand)
|
30,90
|
15,21
|
>100
|
Core headline earnings
per share2 (Rand)
|
24,55
|
22,52
|
9,0
|
Interim dividend (Rand
per share)
|
7,00
|
-
|
100
|
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 reviewed interim financial results.)
|
2
Core headline earnings per share 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 is a useful
measure of the Group´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 reviewed interim financial
results.)
|
Net asset
value
|
Half
year
31 Dec
2022
|
Full year
30 Jun 2022
|
Change
%
|
Total assets (R
million)
|
422 002
|
419 548
|
0,6
|
Total liabilities (R
million)
|
219 866
|
226 351
|
2,9
|
Total equity (R
million)
|
202
136
|
193
197
|
4,6
|
Turnover
|
|
EBIT/(LBIT)1
|
Half
year
31 Dec
2021
|
Half
year
31 Dec
2022
|
|
Half
year
31 Dec
2022
|
Half
year
31 Dec
2021
|
R
million
|
R
million
|
|
R
million
|
R
million
|
|
|
Energy
business
|
|
|
11 872
|
14
219
|
Mining
|
1 918
|
2 026
|
5 683
|
5 551
|
Gas
|
3 503
|
7 619
|
41 439
|
63
049
|
Fuels
|
5 103
|
5 730
|
|
|
Chemicals
business
|
|
|
30 819
|
35
621
|
Africa
|
8 994
|
10 567
|
18 133
|
23
476
|
America
|
270
|
1 396
|
26 087
|
25
347
|
Eurasia
|
313
|
2 346
|
32
|
-
|
Corporate
Centre
|
4 103
|
(5 375)
|
134
065
|
167
263
|
Group
performance
|
24
204
|
24 309
|
(14 154)
|
(15 513)
|
Intersegmental
turnover
|
|
119 911
|
151
750
|
External
turnover
|
|
1
Loss before interest and tax
|
|
Dividend
The Sasol Limited board of directors (Board) declared an interim
gross cash dividend of South African 700 cents per share
(31 December 2021 – nil cents per
ordinary share) for the six months ended 31
December 2022. 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 interim 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 interim dividend amount payable
to shareholders who are not exempt from the dividend withholding
tax, is 560 cents per share, while
the dividend amount payable to shareholders who are exempt from
dividend withholding tax is 700 cents
per share.
The salient dates for
holders of ordinary shares and Sasol BEE ordinary shares for the
six months ended 31 December 2022 are:
|
Declaration
date
|
Tuesday, 21 February
2023
|
Last day for trading to
qualify for and participate in the interim dividend (cum
dividend)
|
Tuesday, 7 March
2023
|
Trading ex-dividend
commences
|
Wednesday, 8 March
2023
|
Record date
|
Friday, 10 March
2023
|
Dividend payment date
(electronic and certificated register)
|
Monday, 13 March
2023
|
The salient dates for
holders of American Depository Receipts for the six months ended
31 December 2022 are:1
|
Ex dividend on New York
Stock Exchange (NYSE)
|
Thursday, 9 March
2023
|
Record date
|
Friday, 10 March
2023
|
Approximate date for
currency conversion
|
Tuesday, 14 March
2023
|
Approximate dividend
payment date
|
Friday, 24 March
2023
|
1All
dates approximate as the NYSE sets the record date after receipt of
the dividend declaration.
|
On Monday, 13 March 2023,
dividends due to certificated shareholders on the South African
registry will be electronically transferred to shareholders' bank
accounts. Shareholders who hold shares in dematerialised form will
have their accounts held by their Central Securities Depository
Participant or broker credited on Monday, 13
March 2023. Share certificates may not be dematerialised or
rematerialised between 8 March 2023
and 10 March 2023, both days
inclusive.
The Company's tax number is 9520018608.
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
reviewed and reported on by Sasol Limited's external auditors.
Financial figures in this announcement have been correctly
extracted from the reviewed interim financial results. 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 21 February 2023, via the JSE
link.
The full announcement and the reviewed interim financial results
will be available on the Company's website at:
https://www.sasol.com/investor-centre/financial-results
Sasol's President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer,
Hanré Rossouw, will present the results at 09h00 (SA time) on
21 February 2023, followed by a
market call to address questions.
Please connect to the call via the webcast link:
https://78449.themediaframe.com/links/sasol230221.html
or via teleconference call link:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=5006357&linkSecurityString=c4593dfa0
The recording of the presentation will be available on the
website thereafter.
Copies of the full announcement and the reviewed interim
financial results may also be requested from the office of the
Chief Investor Relations Officer, investor.relations@sasol.com or
+27 10 344 9280.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/SOL/HY23Result.pdf
For further information, please contact:
Investor Relations:
Tiffany Sydow, VP Investor
Relations
Telephone: +27 (0) 71 673 1929
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 GHG 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