Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 12
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Our level of indebtedness may result in an
inability to comply with our net debt to
earnings before interest, tax, depreciation
and amortisation (EBITDA) covenant,
which in turn, could have a material
adverse impact on our financial position
and results, credit rating, and/or liquidity;
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Our access to and cost of funding is
affected by our credit rating, which in turn
is affected by, among other factors, our
key financial metrics and the sovereign
credit rating of the Republic of South
Africa;
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Fluctuations in crude oil, natural gas,
ethane, chemical and petroleum product
prices and refining margins may adversely
affect our business, operating results, cash
flows and financial condition;
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Fluctuations in exchange rates may
adversely affect our business, operating
results, cash flows and financial
condition; and
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Uncertainty relating to the London
Interbank Offered Rate (LIBOR)
calculation process and potential phasing
out of LIBOR after 2021 may adversely
affect the amounts of interest we pay
under our debt arrangements and as a
consequence affect our business,
operating results and financial condition.
Risk related to our sustainability
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Our ability to respond to climate change
could negatively impact our growth
strategies, reduce supply/demand for our
products, increase our operational costs,
reduce our competitiveness, negatively
impact our stakeholder relations,
adversely affect our legal licences to
operate and our access to capital and
financing.
Risks related to our safety and operations
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We may face potential costs in connection
with industry and value chain-related
operational interruptions, accidents or
deliberate acts of terror or civil unrest
causing property damage, personal injury
or environmental contamination.
Risks related to legal, regulatory and governance
matters
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We identified a material weakness in our
internal control over financial reporting in
2020, which we are still in the process of
remediating. If we are unable to remediate
this material weakness, or if we
experience additional material weaknesses
or other significant deficiencies in the
future or otherwise fail to maintain an
effective system of internal controls, we
may not be able to accurately and timely
report our financial results, which could
cause shareholders to lose confidence in
our financial and other public reporting,
and adversely affect our share price;
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Actual or alleged non-compliance with
regulatory requirements could result in
criminal or civil sanctions or could harm
our reputation and negatively impact our
licence to operate;
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South African mining legislation may
have an adverse effect on our mineral
rights;
Risk related to COVID-19
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Exposure related to significant
investments in associates and joint
arrangements may adversely affect our
business, operating results, cash flows and
financial condition.
Our global operations expose us to
pandemics, such as the COVID-19
pandemic, that may adversely affect our
workforce and impact business continuity,
operating results, cash flows and financial
condition.
Risks related to our capital investments
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Our large projects are subject to schedule
delays and cost overruns, and we may
face material changes in market
conditions or other business assumptions
which could render our projects unviable
or less profitable than planned; and
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