Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 60
SASOL LIMITED GROUP
The group’s operating model comprises of two distinct businesses, Energy and Chemicals. The Energy Business manages the marketing
and sales of all fuel, coal, gas and oil products in Southern Africa. The Chemicals Business includes the marketing and sales of all chemical
products in Africa, America and Eurasia. The operating model structure reflects how the results are reported to the Chief Operating Decision
Maker (CODM). The CODM for Sasol is the President and Chief Executive Officer. The Energy Business reportable segments are operating
segments that are differentiated by the activities that each undertakes and the products they manufacture and market. The Chemicals
Business reportable segments are differentiated by the regions in which they operate. The group has six main reportable segments that
reflect the structure used by the President and Chief Executive Officer to make key operating decisions and assess performance. The group
evaluates the performance of its reportable segments based on earnings before interest and tax (EBIT).
The Energy Business operates integrated value chains with feedstock sourced from the Mining and Gas operating segments and processed
at our operations in Secunda, Sasolburg and Natref. There are also associated assets outside South Africa which include the Pande-Temane
Petroleum Production Agreement (PPA) in Mozambique and ORYX GTL (gas to liquids) in Qatar.
Mining is responsible for securing coal feedstock for the Southern African value chain, mainly for gasification, but also to generate electricity
and steam. Coal is sold for gasification and utility purposes to Secunda Operations, for utility purposes to Sasolburg Operations and to
third parties in the export market. Coal is supplied to Secunda Operations on arms-length terms and to Sasolburg operations based on a
long-term supply contract with inflation linked escalation. The price of export coal is based on the Free on Board Richards Bay index.
The date of delivery related to Mining is determined in accordance with the contractual agreements entered into with customers. These are
summarised as follows:
Control passes to the customer
At the point in time when the coal is delivered to the customer.
Free on Board
At the point in time when the coal is loaded onto the vessel at Richards Bay Coal Terminal; the customer is
responsible for shipping and handling costs.
The Gas segment reflects the upstream feedstock, transport of gas through the ROMPCO pipeline, and external natural and methane rich
Mozambican gas is sold under long-term contracts to both the Secunda and Sasol operations and to external customers. Condensate is
sold on short-term contracts. In South Africa, gas is sold under long-term contracts at a price determinable from the supply agreements in
accordance with the pricing methodology used by the National Energy Regulator of South Africa (NERSA). Analysis of gas and tests of the
specifications and content are performed prior to delivery. Canadian gas is sold into the market at spot prices. Turnover from all gas sales is
recognised on delivery.
Control passes to the customer
At the point in time when the:
• ■Gas reaches the inlet coupling of the customer’s pipeline.
• ■Condensate is loaded onto the customer’s truck.
These are the points when the customer controls the gas, condensate or oil, or directs the use of it. The customer
is responsible for transportation and handling costs in terms of gas, condensate and oil.
Sasol Annual Financial Statements 2021