Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 79
model enables Sasol to optimise the group’s cash and
borrowing facilities wherever it is required.
Included in investing activities in 2021 are the
proceeds from the sale of 50% of our interest in the US
LCCP Base Chemicals business through the creation of
the 50/50 owned LIP JV for R30 billion (US$2 billion)
and the sale of Sasol’s 16 ASU’s and associated
business located in Secunda for R8 billion.
For information regarding our debt and
funding structure, refer “Integrated Report—
Performance Overview—Chief Financial Officer’s
review” as contained in Exhibit 99.3.
For information regarding cash flows from
investing activities refer “Integrated Report—
Performance Overview—Chief Financial Officer’s
review” as contained in Exhibit 99.3.
Capital resources
Sasol Financing Limited, Sasol Financing
International Limited and Sasol Financing USA LLC
act as our group’s financing vehicles. All our group
treasury, cash management and borrowing activities are
facilitated through Sasol Financing Limited, Sasol
Financing International Limited and Sasol Financing
USA LLC. The group executive committee (GEC) and
senior management meet regularly, to review and, if
appropriate, approve the implementation of optimal
strategies for the effective management of the group’s
financial risk.
For information regarding cash flows from
additions and disposals, refer “Item 18—Financial
Statements—Note 20 Property, plant and equipment”
and “Note 11 Disposals and scrapping”.
For details of our additions to non-current
assets, and the projects to which these relate, refer to
“Item 18—Financial Statements—Note 20 Property,
plant and equipment ”.
Our cash requirements for working capital,
share repurchases, capital expenditures, debt service
and acquisitions over the past three years have been
primarily financed through a combination of funds
generated from operations, borrowings and asset
disposals. In our opinion, our working capital is
sufficient for present requirements.
For details of our capital commitments refer to
“Item 18—Financial Statements—Note 20 Property,
plant and equipment”.
Financing activities
Net cash generated from financing activities
decreased to R58 265 million cash used in financing
activities in 2021 as compared to R25 112 million in
2020.
Our debt as at 30 June comprises the
following.
2021
The reason for the decrease in cash generated
from financing activities is mainly due to the repayment
of the revolving credit facility of R55,4 billion ($3,6
billion) (2020 - US$1,5 billion), the term loans of
R5,4 billion (US$350 million) and the syndicated loan
and commercial banking facilities of R19,7 billion.
Long-term debt, including
current portion . . . . . . .
Lease liabilities, including
current portion . . . . . . .
Short-term debt . . . . . . . .
Bank overdraft . . . . . . . .
Total debt . . . . . . . . . . . .
Less cash (excluding cash
restricted for use) . . . .
Net debt . . . . . . . . . . . . . .
In March 2021, we successfully issued US$1,5
billion bonds.
The group’s operations are financed primarily
by means of its operating cash flows. Cash shortfalls
are usually short-term in nature and are met primarily
from short-term banking facilities. Our long-term
capital expansion projects are financed by a
combination of floating and fixed rate long-term debt,
as well as internally generated funds. To the extent
possible, this debt is normally financed in the same
currency as the underlying project to be funded and the
repayment terms are designed to match the cash flows
expected from that project. A centralised treasury
2020
2019
(Rand in millions)
102 643
167 197
129 569
15 677
60
243
118 623
17 719
21 888
645
207 449
7 770
1 239
58
138 636
(29 467)
89 156
(32 932)
174 517
(13 397)
125 239
As at 30 June 2021, we had R2 251 million
(2020— R1 807 million) in cash restricted for use.
Refer to “Item 18—Financial Statements—Note 29
Cash and cash equivalents” for a breakdown of
amounts included in cash restricted for use.
The group has borrowing facilities with major
financial institutions and debt securities of R156 946
million (2020—R199 861 million; 2019—
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