Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 68
Selling and distribution costs. These costs
comprise of marketing and distribution of products,
freight and customs and excise duty after the point of
sale. Selling and distribution costs in 2021 amounted to
R8 026 million, which represents a decrease of R362
million, or 4%, compared with R8 388 million in 2020,
which increased by R552 million, or 7%, compared
with R7 836 million in 2019. The variation in these
costs was mainly attributable to decreased freight,
packaging and shipping costs due to lower quantities of
LLDPE and LDPE sold during 2021 due to the 50%
divestment of the base chemicals LCCP units to
LyondellBasell. Selling and distribution costs
represented 4% of sales in 2021, 4% of sales in 2020,
and 4% of sales in 2019.
Turnover
Turnover consists of the following categories.
Sale of products
Services rendered
Other trading
income . . . . .
Turnover . . . . .
Change
2021/2020
Change
2019
2020/2019
(Rand
(%)
in millions)
(%)
6
200 097
(6)
(12)
1 735
(5)
2021
2020
(Rand
in millions)
199 210 187 277
1 450
1 647
1 250
201 910
1 443
190 367
(13)
6
1 744
203 576
(17)
(6)
The primary factors contributing to the
changes in turnover were.
Turnover, 2020 and 2019
Exchange rate effects . .
Product prices . . . . . . .
—crude oil . . . . . . . . .
—other products . . . . . .
Net volume changes . . .
Other effects . . . . . . . .
Turnover . . . . . . . . . .
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Change
2021/2020
(Rand in
millions) (%)
190 367
(122) (1)
14 002
7
3 439
2
10 563
6
(1 301) (1)
(1 036) (1)
201 910
6
Change
2020/2019
(Rand in
millions) (%)
203 576
14 967
8
(30 287) (15)
(24 031) (12)
(6 256) (3)
2 400
1
(289)
190 367
(6)
Maintenance expenditure. Maintenance
expenditure in 2021 amounted to R12 115 million,
which represents an increase of R1 622 million, or
15%, compared with R10 493 million in 2020, which
increased by R266 million, or 3%, compared with R10
227 million in 2019. Maintenance expenditure
increased in 2021 compared to 2020 mainly due to
inflation and maintenance work performed for the
LCCP units due to the two hurricanes experienced in
Louisiana and increased maintenance activities in
Secunda compared to the prior year.
Operating costs and expenses
Operating costs and expense consists of the
following categories.
Revised
2020
(Rand
in millions)
2021
Materials, energy and
consumables used . .
Selling and distribution
costs . . . . . . . . . .
Maintenance expenditure
Employee-related
expenditure . . . . . .
Exploration expenditure
and feasibility costs .
Depreciation and
amortisation . . . . . .
Translation gains/(losses)
Other operating expenses
Other operating income
Operating costs and
expenses . . . . . . . .
Change
2021/2020
(%)
Revised
2019
(Rand
in millions)
Change
2020/2019
(%)
(85 370)
(90 109)
(5)
(90 589)
(1)
(8 026)
(12 115)
(8 388)
(10 493)
(4)
15
(7 836)
(10 227)
7
3
(32 848)
(30 667)
7
(29 928)
2
(51)
(663)
Employee-related expenditure. Employeerelated expenditure amounted to R32 848 million,
which represents an increase of R2 181 million, or 7%,
compared with R30 667 million in 2020, which
increased by R739 million, or 2%, from 2019.
(295)
(608)
(17 644)
5 510
(14 123)
2 024
(22 327)
(6 542)
(22 280)
1 446
(21)
( 184)
(37)
40
(17 814)
604
(21 064)
1 363
25
(1 183)
6
6
(162 887)
(189 968)
(14)
(176 154)
8
This amount includes labour costs of R30 944
million (2020— R28 926 million and 2019— R28 709
million) and a share-based payment charge to the
income statement of R1 904 million (debit), (2020—
R1 741 million (debit) and 2019— R1 219 million
(debit)).
(8)
Excluding the effect of the share-based
payment expenses, our employee costs increased by
R2 018 million, or 7%, in 2021 compared to 2020. This
was primarily due to the reintroduction of the shortterm incentive in 2021 partially offset by our cash
conservation initiatives. Overall headcount decreased
from 31 001 in 2020 to 28 949 employees in 2021, a
decrease of 7%.
Materials, energy and consumables used.
Materials, energy and consumables used in 2021
amounted to R85 370 million, a decrease of
R4 739 million, or 5%, compared with R90 109 million
in 2020, which decreased by 1% from R90 589 million
in 2019. The decrease in these costs between 2021 and
2020 was mainly due to the lower crude oil volumes
purchased, as sufficient amounts of processed oil at
Natref and Secunda were produced compared to 2020.
In 2020 Natref shutdown its operations in May and
June and our Secunda facilities lowered production.
Exploration expenditure and feasibility costs.
Exploration expenditure and feasibility costs in 2021
amounted to R295 million, which represents a decrease
of R313 million, or 51%, compared with R608 million
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