Sasol Integrated Report 2022 - Book - Page 45
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
DELIVERING
CREATING VALUE
GOVERNANCE AND REWARDS
ADMINISTRATION
PERFORMANCE OVERVIEW (CONTINUED)
Performance summary | Profit | Income statement for the year ended at 30 June
R276 billion
Turnover
Earnings
for the year
R41,7 billion
Remeasurement
items of
R9,9 billion
Core headline earnings per share
22
Year
15,08
19
37,83
18
37,02
0
10
20
30 40 50
Rand per share
60
70
80
Core headline earnings per share (CHEPS) increased by more than
100% mainly due to a stronger macroeconomic environment, partly
offset by a challenging operational performance in the SA value chain.
22
8
21
(19)
20
(>100)
19
(53)
(100) (80)
(60) (40)
%
(20)
0
20
2020
Rm
275 738
(126 991)
201 910
(85 370)
190 367
(90 109)
(8 677)
(13 322)
(32 455)
(366)
(8 026)
(12 115)
(32 848)
(295)
(8 388)
(10 493)
(30 667)
(608)
(14 073)
(31 468)
(17 644)
(6 589)
(22 327)
(27 376)
693
(32 161)
5 510
(12 099)
(6 542)
(20 834)
814
Operating profit before
remeasurement items
Remeasurement items affecting
operating profit
51 514
39 837
9 903
(23 218)
(111 978)
Earnings/(loss) before interest
and tax (EBIT/(LBIT))
Finance income
Finance costs
61 417
16 619
(111 926)
1 020
(6 896)
856
(6 758)
922
(7 303)
55 541
(13 869)
10 717
(185)
(118 307)
26 390
Earnings/(loss) before tax
Taxation
(347)
52
Earnings/(loss) for the year
41 672
10 532
(91 917)
Attributable to
Owners of Sasol Limited
Non-controlling interests in
subsidiaries
38 956
2 716
9 032
1 500
(91 754)
(163)
41 672
10 532
(91 917)
Rand
Rand
Rand
Year
Year
Quality-based earnings growth %
(in US$ real terms – 2017 baseline)
2021
Rm
3 128
Equity accounted profits/(losses),
net of tax
27,74
20
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
Translation gains/(losses)
Other operating expenses
and income
68,54
21
2022
Rm
Per share information
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Commentary
TURNOVER
Turnover increased by 37% mainly due to higher energy prices impacted
by the Russia/Ukraine conflict and increased demand following ease
of COVID-19 regulations, and higher chemicals prices due to higher
Brent crude oil and feedstock prices. This was offset by lower volume
performance mainly due to the operational challenges experienced in
the first half of the financial year.
MATERIALS, ENERGY AND CONSUMABLES USED
Increase of 49% relates to increase in feedstock, electricity and gas prices.
DEPRECIATION AND AMORTISATION
20% decrease in depreciation relates to asset disposals and the impact of
prior year impairments in the South Africa value chain on the current year
depreciation charge.
OTHER OPERATING EXPENSES AND INCOME
Other expenses and income increased compared to the prior year mainly
due to losses on the valuation of derivative contracts of R18,3 billion
compared to a gain of R2,3 billion in 2021, as well as the translation of
monetary assets and liabilities due to a 14% weakening of the closing
rand/US dollar exchange rate compared to 30 June 2021.
Derivative instruments relate to our foreign currency exposure, crude oil
hedging instruments, ethane swaps and the embedded derivatives in the
long-term oxygen supply contracts with Air Liquide.
REMEASUREMENT ITEMS
Remeasurement items affecting operating profit include:
• A gain on realisation of foreign currency translation gains (FCTR) of
R4,9 billion relating to the divestment of all our interests in Canada and
R2,9 billion relating to the divestment of the European Wax business;
• A reversal of impairment of R1,4 billion related to the Chemical WorkUp and Heavy Alcohols cash-generating unit;
• A loss on scrapping of property, plant and equipment of R2,5 billion
following an asset transfer between Sasol and LIP JV as part of the
finalisation of the US Base Chemicals divestment at Lake Charles; and
• A profit of R3,7 billion on the divestment of 30% of our equity interest
in the Republic of Mozambique Pipeline Investment Company (Pty) Ltd
(ROMPCO).
EARNINGS BEFORE INTEREST AND TAX
62,34
61,36
14,57
14,39
(148,49)
(148,49)
Earnings before interest and tax (EBIT) of R61,4 billion increased by more
than 100% compared to the prior year, driven by higher crude oil prices,
refining margins and chemical prices.
TAXATION
EBIT of R61,4 billion increased compared to the prior year of R16,6 billion
largely due to the stronger macroeconomic environment, net gains on
divestments and prior year impairment, partly offset by a challenging
operational performance in the SA value chain and derivative and
hedging losses due to the higher Brent crude oil price.
Our effective corporate tax rate increased from 1,7% to 25,0%. The low
rate in 2021 was mainly as a result of tax losses utilised. The effective
corporate tax rate is 3,0% lower than the South African corporate income
tax rate of 28%, mainly due to the realisation of FCTR on the disposal of
our Canadian shale gas assets and European Wax business, through the
income statement.
SASOL INTEGRATED REPORT 2022
44
