Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 69
in 2020, which decreased by R55 million compared
with R663 million in 2019. The decrease in 2021 as
compared to 2020 was largely attributable to a decrease
on seismic acquisition activities as well as reduced
activities due to phasing of the cost due to COVID-19.
Depreciation and amortisation. Depreciation
and amortisation in 2021 amounted to R17 644 million,
which represents a decrease of R4 683 million,
compared with R22 327 million in 2020, which
increased by R4 513 million compared with R17 814
million in 2019. The decrease in depreciation of R4 683
million mainly relates to the decrease in fixed assets as
a result of significant impairments recognised in the
prior year and the 50% divestiture of the US LLDPE,
LDPE, West Cracker Ethylene, along with the
production sites shared assets at LCCP.
Translation gains/(losses). Translation gains
arising primarily from the translation of monetary
assets and liabilities, amounted to R5 510 million in
2021, as compared to a R6 542 million loss in 2020 and
a R604 million gain in 2019. The rand strengthened
against the US dollar throughout 2021, with the closing
exchange rate strengthened by 18% to R14,28 at
30 June 2021 compared to R17,33 at 30 June 2020.
This had a positive impact on our gearing and the
valuation of our derivatives.
professional fees of R2 828 million
(2020— R2 067 million and 2019—
R2 226 million);
profit on derivative instruments (including
crude oil instruments, foreign exchange
instruments, ethane swaps and interest
rate swaps) of R2 282 million mainly due
to our foreign exchange zero cost collars
and Trains 1 to 17 derivatives in Secunda,
which resulted from the strengthening in
the rand/US$ exchange rate, 2020—
R6 997 million loss and 2019— R2 465
million loss;
decrease in rehabilitation provisions of
R361 million (2020—decrease of
R2 078 million and 2019— increase of
R1 096 million); and
other expenses of R9 511 million (2020—
R10 546 million and 2019— R9 880
million), a decrease of R1 035 million.
This is mainly resulted from lower
contract work due to cash conservation
measures.
Other operating income. Other operating
income in 2021 amounted to R2 024 million, which
represents an increase of R578 million, or 40%,
compared with R1 446 million in 2020. In 2019, other
operating income amounted to R1 363 million.
Other operating expenses. Other operating
expenses in 2021 amounted to R14 123 million, a
decrease of R8 157 million, compared to
R22 280 million in 2020, which increased by
R1 216 million from R21 064 million in 2019.
Share of profits from equity accounted investments
This amount includes:
lease-related expenditure of R424 million
(2020— R610 million and 2019—
R1 845 million);
insurance costs of R739 million (2020—
R681 million and 2019— R514 million);
computer costs of R2 563 million (2020—
R2 469 million and 2019—
R2 155 million);
hired labour of R565 million (2020—
R844 million and 2019— R786 million);
audit remuneration of R136 million
(2020— R144 million and 2019—
R97 million);
Profit/(loss) before tax
Tax . . . . . . . . . . . . .
Share of
profits/(losses) of
equity accounted
investments, net of
tax . . . . . . . . . . . .
Remeasurement items,
net of tax . . . . . . .
Change
Change
2021 2020 2021/2020
2019
2020/2019
(Rand
(Rand
in millions)
(%)
in millions)
(%)
1 230 (129)
(1 052)
1 737
(107)
(416) (218)
91
(663)
(67)
814
(347)
(334)
23
—
—
1 074
(132)
15
(100)
The share of profits of equity accounted
investments (net of tax) amounted to R814 million in
2021 as compared to losses of R347 million in 2020
and profits of R1 074 million in 2019. ORYX GTL
contributed R719 million to equity accounted earnings,
increasing by more than 100% compared to the prior
year, due to a solid operational performance post the
extended shutdown during the first half of the financial
year. We sold our participating interest in Escravos
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