PR91158

JOHANNESBURG, August 16, 2021 /PRNewswire=KYODO JBN/ -

    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 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                               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, 16 August, 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

    Source: Sasol Limited