Sasol posts strong financial results supported by macroeconomic environmentJOHANNESBURG
– Black-owned businesses spend in South Africa up 40% to R33,6 billion of R55,8 billion B-BBEE spend
– Invested R1,2 billion in skills development
– Key terms agreed with IPPs for more than 600MW of renewable energy for SA Operations
– Balance sheet strengthened with net debt down to US$3,8 billion
– Reinstatement of dividend of R14,70 per share
– Earnings before interest and tax (EBIT) up by more than 100% to R61,4 billion
– Earnings per share up more than 100% to R62,34, core headline earnings per share up more than 100% to R68,54
Sasol delivered a strong set of financial results against the backdrop of increased volatility resulting from ongoing geopolitical tensions, extended COVID-19 lockdowns and global supply chain disruptions. We benefitted from higher energy and chemicals prices, as well as strong cost and capital discipline through the delivery of our Sasol 2.0 transformation programme. This was offset by lower volume performance mainly due to the operational challenges experienced in the first half of the financial year. We have seen improved performance on the back of more stable operations in the second half of the financial year.
Earnings before interest and tax (EBIT) of R61,4 billion increased by more than 100% compared to the prior year, driven by higher crude oil prices, refining margins and chemical prices. This also resulted in a strong gross margin improvement compared to the prior year.
Key metrics 2022 2021 Change %
EBIT (R million) 61 417 16 619 >100
Adjusted EBITDA1 (R million) 71 843 48 420 48
Headline earnings (R million) 29 735 24 503 21
Basic earnings per share (Rand) 62,34 14,57 >100
Headline earnings per share (Rand) 47,58 39,53 20
Core headline 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 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 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 full set of audited summarised financial statements.
Net asset value 2022 2021 Change %
Total assets (R million) 419 548 360 743 16
Total liabilities (R million) 226 351 208 272 9
Total equity (R million) 193 197 152 471 27
2021 2022 2022 2021
R million R million R million R million
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)
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 Centre (17 225) 5 153
229 364 303 967 Group performance 61 417 16 619
(27 454) (28 229) Intersegmental turnover
201 910 275 738 External turnover
A final gross cash dividend of South African 1 470 cents per share (30 June 2021 – nil cents per ordinary share) has been declared for the year ended 30 June 2022. The cash dividend is payable on the ordinary shares and the Sasol BEE ordinary shares. The Board is satisfied that the liquidity and solvency of the company, as well as capital adequacy remaining after payment of the dividend, are sufficient to support the current operations for the ensuing year. The 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 629 367 128 ordinary and 6 331 347 Sasol BEE ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from dividend withholding tax, is 1 176 cents per share, while the dividend amount payable to shareholders who are exempt from dividend withholding tax is 1 470 cents per share.
Sasol Limited’s Annual Financial Statements for the year ended 30 June 2022 (the Annual Financial Statements) have also been published on the Company’s website at : https://www.sasol.com/investor-centre/financial-results.
Copies of the full announcement and the Annual Financial Statements may also be requested from the Investor Relations office, email@example.com.
The JSE link is as follows: https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SOL/FY22Result.pdf.
The President and Chief Executive Officer and Chief Financial Officer will share the results on Tuesday, 23 August 2022 at 09:00 (SA time) followed by a conference call.
Please connect to the call via the webcast link: https://www.corpcam.com/Sasol23082022.
Or via teleconference: https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=3629805&linkSecurityString=7a93dfa35.
Alex Anderson, Senior Manager: Group Media Relations and External Relations
Mobile: +27 (0) 71 600 9605; Email: firstname.lastname@example.org
Matebello Motloung, Manager: Group Media Relations
Mobile: +27 (0) 82 773 9457; Email: email@example.com
Sasol is a global chemicals and energy company. We harness our knowledge and expertise to integrate sophisticated technologies and processes into world-scale operating facilities.
We strive to safely and sustainably source, produce and market a range of high-quality products globally.
Please visit www.sasol.com for more information.