Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 133
2021
2020
AAA to A%
BBB to B%
CCC+ and
– below
%
AAA to A%
BBB to B%
CCC+ and
– below
%
58
72
68
21
39
25
27
79
3
3
5
–
40
69
72
19
20
26
10
78
40
5
18
3
Long-term receivables
Trade receivables
Other receivables
Cash and cash equivalents*
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Overview of the credit risk profile of financial assets measured at amortised cost is as follows:
* Including restricted cash included in other long-term investments.
Liquidity risk
The COVID-19 pandemic together with the oil price volatility during the first half of the year continued to impact the group’s
operations and results. The lower oil price environment also impacted negatively on chemical prices across most of the group’s sales
regions and products. The group experienced a notable gross margin recovery 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 and further
underpinned by a strong cost, working capital and capital expenditure performance, despite the continued impacts of the COVID-19
pandemic and adverse weather events in North America and South Africa.
How we manage the risk
The group manages liquidity risk by effectively managing its working capital, capital expenditure and cash flows, making use of
a central treasury function to manage pooled business unit cash investments and borrowing requirements. Currently the group
is maintaining a positive liquidity position, conserving the group's cash resources through continued focus on working capital
improvement, cost savings and capital reprioritisation especially in the light of the current economic environment.
The group meets its financing requirements through a mixture of cash generated from its operations and, short and long-term
borrowings and strives to maintain adequate banking facilities and reserve borrowing capacities.
Increased cash generation, through delivery of Sasol’s self-help measures and asset disposals contributed to balance sheet
de-leveraging and meeting of re-instated debt covenant levels at 30 June 2021. To manage cash generated from operations
management enhanced its hedging programmes aimed to protect margins at several of its operations and exceeded its targets in
respect of its US$2 billion cash conservation programme.
NOTES TO THE FINANCIAL STATEMENTS
Liquidity risk is the risk that an entity in the group will be unable to meet its obligations as they become due.
OTHER
SASOL LIMITED COMPANY
From a financing perspective, the group currently has sufficient undrawn borrowing facilities. Refer to note 17. The next material
maturity is the $1 billion bond due in November 2022.
131
Sasol Annual Financial Statements 2021