Sasol Limited Integrated Report 2021 - Book - Page 46
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Performance overview – Financial statements
Statement of financial position
Income statement
Commentary
at 30 June
2021
Rm
2020
Restated**
Rm
1 July 2019
Restated**
Rm
198 021
12 903
2 482
10 142
1 896
591
227 645
13 816
2 800
11 812
1 926
467
357 582
–
3 357
9 866
1 248
1 274
4 224
809
24 511
6 435
–
31 665
6 317
15
8 563
255 579
296 566
388 222
Inventories
Tax receivable
Trade and other receivables
Short-term financial assets
Cash and cash equivalents
29 742
1 113
30 933
1 514
31 231
27 801
5 419
25 097
645
34 739
29 646
730
28 578
630
15 877
Current assets
94 533
93 701
75 461
Assets in disposal groups held for sale
10 631
84 268
2 554
Total assets
360 743
474 535
466 237
Equity and liabilities
Shareholders’ equity
Non-controlling interests
146 489
5 982
150 976
4 941
217 224
5 885
Total equity
152 471
155 917
223 109
Long-term debt
Lease liabilities
Long-term provisions
Post-retirement benefit obligations
Long-term deferred income
Long-term financial liabilities
Deferred tax liabilities
97 137
13 906
16 164
13 297
400
2 011
7 793
147 511
15 825
21 857
14 691
842
5 620
19 154
127 350
7 445
17 622
12 708
924
1 440
26 541
150 708
225 500
194 030
Short-term debt
Short-term provisions
Tax payable
Trade and other payables
Short-term deferred income
Short-term financial liabilities
Bank overdraft
7 337
5 064
806
36 670
576
3 162
243
43 468
2 202
665
35 757
579
4 271
645
3 783
3 289
1 039
39 466
210
765
58
Current liabilities
53 858
87 587
48 610
Assets
Property, plant and equipment
Right of use assets
Goodwill and other intangible assets
Equity accounted investments
Other long-term investments
Post-retirement benefit assets
Long-term receivables and
prepaid expenses
Long-term financial assets
Deferred tax assets
Non-current assets
Non-current liabilities
Liabilities in disposal groups held
for sale
Total equity and liabilities
Commentary
for the year ended 30 June
3 706
5 531
488
360 743
474 535
466 237
** The results have been restated for prior period errors in the calculation of South African value chain
impairments, refer to note 1 in the Annual Financial Statements.
Non-current assets
Current assets
Total assets
R256
billion
R95
billion
R361
billion
2021
Property, plant and equipment
Additions to non-current assets
amounted to R15,9 billion, projects
capitalised amounted to R16 billion.
Asset impairments related to our Secunda
liquid fuels refinery (R24,5 billion), Wax
(R7,9 billion) and Chlor Alkali and PVC
(R1,1 billion) cash generating units (CGUs)
were recognised in FY21. These were
mainly due to our stronger outlook on the
rand/US dollar exchange rate and lower
long-term oil price outlook for the Secunda
refinery and higher future feedstock prices
for the Chemicals CGUs. Macro-economic
volatility presents a significant challenge at
period end when performing impairment
assessments. The South Africa value
chain CGUs impairments were offset by
reversals of prior year impairment of
R4,9 billion, (US$0,3 billion), relating
to the US Ziegler Alcohols, Ethylene
Oxide/Ethylene Glycol (EO/EG) CGU and
Canadian shale gas assets R521 million,
(CAD45 million).
Assets in disposal group held
for sale
Assets for divestment in 2021 included:
• 30% of our shareholding in Republic
of Mozambique Pipeline Investments
Company;
• Our shareholding in Central Térmica
de Ressano Garcia S.A. (CTRG); and
• Canada shale gas assets, the
transaction closed on 29 July 2021.
Rm
2019
Restated**
Rm
Turnover
Materials, energy and consumables used
Selling and distribution costs
Maintenance expenditure
Employee-related expenditure
Exploration expenditure and feasibility
costs
Depreciation and amortisation
Other expenses and income
201 910
(85 370)
(8 026)
(12 115)
(32 848)
190 367
(90 109)
(8 388)
(10 493)
(30 667)
203 576
(90 589)
(7 836)
(10 227)
(29 928)
(295)
(17 644)
(6 589)
(608)
(22 327)
(27 376)
(663)
(17 814)
(19 097)
Translation gains/(losses)
Other operating expenses and income
5 510
(12 099)
(6 542)
(20 834)
604
(19 701)
Equity accounted profits/(losses),
net of tax
Operating profit before remeasurement
items
Remeasurement items affecting
operating profit
814
39 837
(347)
52
1 074
Materials, energy and
consumables used
Decrease of 5% relates to lower
production volumes and Response
Plan savings.
28 496
(20 062)
Employee-related expenditure
Earnings/(loss) before interest and tax
(EBIT/(LBIT))
Finance income
Finance costs
16 619
856
(6 758)
(111 926)
922
(7 303)
8 434
787
(1 253)
Earnings/(loss) before tax
Taxation
10 717
(185)
(118 307)
26 390
7 968
(2 803)
Excluding the impact of the share-based
payment, our employee costs increased
by 5% compared to 2020, mainly due
the reinstatement of STIs. 2020 also
benefitted from salary sacrifices during
May and June 2020.
Earnings/(loss) for the year
Attributable to
Owners of Sasol Limited
Non-controlling interests in subsidiaries
10 532
(91 917)
5 165
9 032
1 500
(91 754)
(163)
3 389
1 776
10 532
(91 917)
5 165
Rand
Rand
Rand
Per share information
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
14,57
14,39
(148,49)
(148,49)
5,50
5,46
Earnings
Sasol’s earnings for the year were underpinned by a strong cost, working capital and
capital expenditure performance, despite the continued impacts of the COVID-19
pandemic and adverse weather events. A notable gross margin recovery was recorded
in the second half of the financial year, supported by the combined impact of higher
Brent crude oil and chemicals prices, offset by a stronger rand/US dollar exchange rate.
Depreciation
21% decrease in depreciation relates
to asset disposals and the impact of
prior year impairments on current year
depreciation charge.
Other operating expenses
and income
Decrease mainly relates to translation
gains of R5,5 billion compared to losses
of R6,5 billion in the prior year, due to a
18% strengthening of the closing
rand/US dollar exchange rate compared
to 30 June 2020. The current year
includes derivative gains of R2,3 billion
compared to derivative losses of
R7 billion in the prior year.
Derivative instruments relate to our
foreign currency exposure, crude oil
hedging instruments, ethane and interest
rate swaps and the embedded derivatives
in the long-term oxygen supply contracts
with Air Liquide.
Taxation
Turnover
R202
billion
45
Turnover increased by 6% mainly due to:
Higher Brent crude oil prices and a strong
recovery in chemical prices. The Energy
Business saw a strong recovery in liquid
fuels demand following the easing of
lockdown restrictions. The Chemicals
Business also started to benefit from
LCCP, post all units achieving beneficial
operation. Sales volumes were negatively
impacted by weather events in United
States and South Africa with a combined
impact of 300kt.
(111 978)
Debt
Our total debt was R102,9 billion
compared to R189,7 billion as at
30 June 2020, with approximately
R98,4 billion (US$6,9 billion)
denominated in US dollar.
At 30 June 2021, the balance sheet saw
an improvement in the gearing at 61,5%
(30 June 2020: 117%) and Net debt:
EBITDA of 1,5 times (30 June 2020:
4,3 times) (based on the RCF and
US dollar term loan covenant definition),
well below the re-instated June 2021
covenant level of 3,0 times.
Turnover
(23 218)
Working capital
Working capital increased by R7,2 billion
mainly due to a recovery in feedstock
and sales prices during the second half of
the 2021 financial year. This was partly
offset by focused management initiatives
to reduce working capital levels.
2020
Restated**
Rm
Sasol Integrated Report 2021
Earnings for the year
Impairments of
R10,5
billion
R28,7
billion
Our effective corporate tax rate
decreased from 22,4% to 1,7%.
The effective corporate tax rate is
26,3% lower than the South African
corporate income tax rate of 28%,
mainly due to tax losses utilised in the
current year and the release of foreign
currency translation reserves (FCTR) on
the disposal of foreign entities to the
income statement.