Sasol Integrated Report 2022 - Book - Page 46
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
DELIVERING
CREATING VALUE
GOVERNANCE AND REWARDS
ADMINISTRATION
PERFORMANCE OVERVIEW (CONTINUED)
Performance summary | Profit | Statement of cash flows for the year ended at 30 June
Cash generated
by operating
activities
R56,1 billion
Proceeds
on asset
disposals
R8,5 billion
R12,1 billion
Repayment
of debt
Adjusted EBITDA
22
71,8
Year
20
35,0
19
47,6
51,4
18
0
10
20
30
40
50
60
70
80
Rand billion
Adjusted EBITDA improvement was attributable to higher gross
margin supported by a strong macroeconomic environment, partly
offset by a challenging operational performance in the SA value chain,
losses realised on derivative instruments and increase in cash fixed
costs which includes Sasol 2.0 benefits offset by a make-good of
salary increases and return to normal maintenance activities post
2021 comprehensive response plan initiatives, with a further ramp-up
in Fulco labour.
Cash available from operating activities
22
41,2
Year
21
34,5
20
30,6
19
43,4
18
34,3
0
10
20
30
Rand billion
40
50
Cash available from operating activities increased from R34,5 billion
in 2021 to R41,2 billion in 2022 due to higher EBITDA generation driven
by higher prices, and dividends received from equity accounted
investments (mainly ORYX GTL), offset by cash outflow on derivative
and hedging losses.
2021
2020
Rm
Rm
Rm
266 324
(210 186)
194 712
(149 598)
196 798
(154 414)
56 138
45 114
42 384
3 043
986
(5 478)
(13 531)
37
837
(6 173)
(5 280)
208
792
(7 154)
(5 659)
Cash available from operating activities
Dividends paid
Dividends paid to non-controlling
shareholders in subsidiaries
41 158
(49)
34 535
(46)
30 571
(31)
(859)
(446)
(810)
Cash retained from operating activities
Additions to non-current assets
40 250
(23 269)
34 043
(18 214)
29 730
(41 935)
(22 593)
(120)
(556)
(15 945)
(3)
(2 266)
(35 145)
(19)
(6 771)
(67)
8 484
(549)
–
43 214
(427)
(284)
4 285
–
(56)
(95)
26
449
–
(124)
168
476
(512)
(121)
483
(466)
Cash generated by operating activities
Dividends received from equity accounted
investments
Finance income received
Finance costs paid
Tax paid
additions to property, plant and equipment
additions to other intangible assets
decrease in capital project related payables
48,4
21
Cash receipts from customers
Cash paid to suppliers and employees
2022
Cash movements in equity accounted
investments
Proceeds on disposals and scrappings
Movement in assets held for sale
Acquisition of interest in equity accounted
investments
Purchase of investments
Proceeds from sale of investments
Decrease/(increase) in long-term receivables
Cash (used in)/received from investing
activities
(15 077)
25 093
(38 550)
Proceeds from long-term debt
Repayment of long-term debt
Payment of lease liabilities
Repayment of debt held for sale
Proceeds from short-term debt
Repayment of short-term debt
88
(12 086)
(2 264)
(704)
28
(15)
26 057
(61 454)
(2 180)
(980)
9
(19 717)
36 487
(28 335)
(2 061)
–
19 998
(977)
Cash (used in)/generated by financing
activities
(14 953)
(58 265)
25 112
1 759
(2 916)
3 607
11 979
(2 045)
19 899
Translation effects on cash and cash
equivalents
Increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning
of year
Reclassification to disposal groups held for
sale and other long-term investments
Cash and cash equivalents at the end of
the year
30 988
–
42 967
SASOL INTEGRATED REPORT 2022
34 094
(1 061)
30 988
45
15 819
(1 624)
34 094
Commentary
CASH GENERATED BY OPERATING ACTIVITIES
Cash generated by operating activities increased by 24% to
R56,1 billion compared to the prior year mainly due to an
increase in EBIT driven by higher crude oil prices, refining
margins and chemical prices.
ADDITIONS TO NON-CURRENT ASSETS
The higher capital expenditure is largely due to the absence of
a phased shutdown at Secunda Operations in the prior period
and increased sustenance capital expenditure in the current
year following the easing of cash constraints.
PROCEEDS ON DISPOSALS AND SCRAPPINGS
Includes proceeds received from the disposal of our
investment in Republic of Mozambique Pipeline Investment
Company (Pty) Ltd (ROMPCO) (R4,1 billion), divestment of our
full shareholding in Central Térmica de Ressano Garcia S.A
(CTRG) (R2,6 billion), our interest in Canadian shale gas assets
and our European wax business based in Germany.
REPAYMENT OF LONG-TERM DEBT
2021 includes the repayment of the revolving credit facility
(RCF) and term loans with proceeds from asset disposals
under the amended covenant agreements.
CASH AND CASH EQUIVALENTS
Our net cash on hand position increased from R31 billion as at
30 June 2021 to R43 billion mainly due to cash generated from
operations.
