Sasol posts strong financial results supported by macroeconomic environment

Rhea-AI Summary

Sasol reported a robust financial performance for the year ended June 30, 2022, with EBIT exceeding R61 billion, up over 100% year-over-year, driven by higher energy and chemicals prices. Basic earnings per share surged to R62.34, more than doubling the previous year's figures. The company declared a final dividend of R14.70 per share, reflecting strong capital health, with net debt reduced to US$3.8 billion. Despite operational challenges affecting volumes, Sasol's transformation program led to improved operational stability in the second half of the year.

Positive

• EBIT increased over 100% to R61.4 billion.
• Basic earnings per share up over 100% to R62.34.
• Final dividend declared at R14.70 per share.
• Net debt decreased to US$3.8 billion.

Negative

• Lower volume performance due to operational challenges in the first half.

• 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

JOHANNESBURG, Aug. 23, 2022 /PRNewswire/ -- 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

 

Turnover			EBIT/(LBIT)
2021	2022		2022	2021
R million	R million		R million	R million
		Energy business
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)
		Chemicals business
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

 

Dividend

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, investor.relations@sasol.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.

Issued by:

Alex Anderson, Senior Manager: Group Media Relations and External Relations
Mobile: +27 (0) 71 600 9605; Email: alex.anderson@sasol.com

Matebello Motloung, Manager: Group Media Relations
Mobile: +27 (0) 82 773 9457; Email: matebello.motloung@sasol.com 

About Sasol:

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.

About Sasol's Information Privacy Policy:

We wish to inform you about the processing of your Personal Information by Sasol South Africa Limited and your rights under applicable data protection law, as interpreted and included in Sasol Information Privacy Policy.

Within our company, only Sasol Group Media Relations will receive your Personal Information to fulfil the purpose of maintaining the relationship with the receiver in his/her capacity as a member of the media. You have the right to request for the correction or deletion of your Personal Information stored by us at address: Sasol Place, 50 Katherine Street, Sandton in Johannesburg. You also have a right to restrict the processing of your Information. To exercise your privacy rights or find out more about Information Privacy Policy, kindly contact our Privacy Office on: privacy@sasol.com.

View original content:https://www.prnewswire.com/news-releases/sasol-posts-strong-financial-results-supported-by-macroeconomic-environment-301610617.html

SOURCE Sasol

FAQ

What were Sasol's earnings results for 2022?

Sasol reported EBIT of R61.4 billion and basic earnings per share of R62.34 for the year ended June 30, 2022.

How much is Sasol's dividend for 2022?

Sasol declared a final dividend of R14.70 per share for the year ended June 30, 2022.

What factors drove Sasol's financial performance in 2022?

Sasol's financial performance was driven by higher energy and chemicals prices and effective cost management.

What impact did operational challenges have on Sasol's performance?

Operational challenges resulted in lower volume performance in the first half of the financial year.

What is Sasol's current net debt?

Sasol's net debt has been reduced to US$3.8 billion.