Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 72
Total turnover . . . . . . . . . . . . .
Operating costs and expenses(1) . . .
Earnings before interest and tax .
EBIT margin % . . . . . . . . . . . . .
(1)
.
.
.
.
10 990
(4 334)
6 656
61
12 419
(6 892)
5 527
45
(12)
(37)
20
12 665
(8 717)
3 948
31
(2)
(21)
40
unprecedented drop in demand because of COVID-19
lockdowns which led to an 8% reduction in natural gas
sales volumes in South Africa, lower oil (Gabon) and
gas (Mozambique) prices and lower volumes (natural
decline in production from fields in Canada and lower
internal consumption for our Mozambican gas). This
was offset by higher volumes in Gabon and a weaker
rand/US dollar exchange rate. Earnings before interest
and tax of R5 527 million increased by R1 579 million
compared to earnings before interest and tax of
R3 948 million in 2019.
Operating costs and expenses net of other income including
exploration costs and depreciation.
Results of operations 2021 compared to 2020
Total turnover decreased by 12% from
R12 419 million to R10 990 million mainly as a result
of methane-rich gas (MRG) sales volumes which were
5% lower compared to the prior year due to operational
issues experienced by key customers, a 38% decrease in
crude oil volumes resulting from the divestment of our
Gabon assets and a 17% decrease in natural gas sales
volumes from our Canada assets. Natural gas sales
volumes in South Africa were however 16% higher
than the prior year due to higher demand from resellers
and customers as COVID-19 restrictions were eased.
Earnings before interest and tax from our
Mozambican producing operations was R2 464 million
(excluding translation losses of R914 million)
compared to R2 507 million (excluding translation
losses of R114 million) in the prior year. The decreased
earnings before interest and tax is largely due to lower
sales prices and volumes, partly offset by a decrease in
cash fixed costs.
Earnings before interest and tax increased by
20% to R6 656 million compared to the prior year. The
gas value chain benefited from higher external gas sales
in South Africa, the stronger closing rand/US dollar
exchange rate on translation of our Mozambique
foreign operations and lower depreciation on various
assets classified as held for sale. This was partially
offset by a provision of R1,4 billion for the potential
retrospective application of the final determination by
NERSA of the maximum gas price.
Our Gabon operating asset recorded earnings
before interest and tax of R158 million (excluding
translation gains of R442 million) compared to R484
million (excluding translation gains of R54 million) in
the prior year. The recently completed drilling
campaign did result in higher volumes but the resulting
increased depreciation and lower oil prices negatively
affected profitability.
In Mozambique, our gas operations were
stable despite several operational challenges due to
COVID-19. Production volumes of 114,5 bscf were 2%
higher than the prior year. Our drilling campaign was
suspended due to COVID-19 restrictions and started up
on 7 August 2021.
Our Canadian shale gas asset in Montney
generated a loss before interest and tax of R192 million
compared to a loss before interest and tax of R801
million (excluding impairment of R1 947 million) in
the prior year. Our Canadian gas production volumes
decreased by 8% compared to the prior year resulting
from the natural decline of the field.
On 19 February 2021 the Board approved the
FID on the Mozambique PSA licence area. The total
estimated project cost is US$760 million, with total
capital spend of US$4,5 million to date.
Our share of power produced at the CTRG
joint operation in Mozambique amounted to 568
gigawatt hours of electricity, 1% higher than the prior
year.
In line with our strategic objectives, we
divested of our interest in the Gabon oil producing asset
during February 2021 and successfully completed the
divestment of our interest in the Canadian shale gas
assets on 29 July 2021.
For further analysis of our results refer
“Integrated Report—Operational performance
summary” as contained in Exhibit 99.6.
Fuels
Results of operations 2020 compared to 2019
Total turnover decreased by 2% from R12 665
million in 2019 to R12 419 million in 2020 due to
subdued economic activity exacerbated by the
External turnover . . . . . . . . . .
Inter-segment turnover . . . . . .
Total turnover . . . . . . . . . . .
Operating costs and expenses(1) .
71
.
.
.
.
.
.
.
.
Revised
2021
2020
(Rand in
millions)
59 393
60 816
1 256
1 737
60 649
62 553
(78 819) (74 162)
Change
2021/
2020
(%)
(2)
(28)
(3)
6
Revised
2019
(Rand in
millions)
76 985
1 639
78 624
(67 855)
Change
2020/
2019
(%)
(21)
6
(20)
9