Sasol Integrated Report 2023 - Book - Page 51
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PERFORMANCE SUMMARY // PROFIT
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
Statement of financial position at 30 June
PROFIT
2023
Rm
2022
Rm
225 472
11 685
3 191
14 804
2 164
784
3 040
453
37 716
221 308
12 629
3 051
12 684
2 024
633
3 210
555
31 198
299 309
287 292
Inventories
Tax receivable
Trade and other receivables
Short-term financial assets
Cash and cash equivalents
42 205
411
35 905
1 772
53 926
41 110
732
46 671
313
43 140
Current assets
134 219
131 966
Non-current assets
R299 billion
Current assets
R134 billion
Total assets
R434 billion
Return on invested capital (ROIC)
40
18
%
20
0
7
3
2
21
8
5
6
(20)
(29)
(40)
(40)
19
20
Including AUC
21
Year
22
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
Assets in disposal groups held for sale
The Group9s ROIC for 2023 has significantly reduced as a result of net impairment
of assets mainly relating to the Secunda liquid fuels refinery cash generating unit.
Property, plant and equipment
Additions to property, plant and equipment amounted to R30,9 billion
and current year depreciation amounted to R13,8 billion. Asset
impairments in 2023 amounted to R33,6 billion, including:
" The full impairment of the South African wax CGU of R0,9 billion and
the Essential Care Chemicals CGU in Sasol China of R0,9 billion, and the
full reversal of impairment recognised in 2019 on the Tetramerisation
CGU in Lake Charles of R3,6 billion; and
" The Secunda liquid fuels refinery CGU impairment of R8,1 billion at
31 December 2022 after being negatively impacted by an update
in macroeconomic price assumptions. An additional impairment of
R27,2 billion was recognised for this CGU resulting in it now being fully
impaired. Sasol continues to advance implementation of its emission
reduction roadmap (ERR) in South Africa to achieve a 30% reduction in
greenhouse gas emissions by 2030 and comply with the requirements
of the Air Quality Act. The ERR involves the turning down of boilers,
implementing energy efficiency projects, reducing coal usage and
integrating 1 200MW of renewable energy into our operations by 2030.
With no significant additional gas to restore volumes back to historic
levels, the ERR assumes lower production volumes post 2030 and also
results in increased cost of coal and capital expenditure.
310
290
Total assets
433 838
419 548
Equity and liabilities
Shareholders9 equity
Non-controlling interests
196 904
4 620
188 623
4 574
Total equity
201 524
193 197
Trade and other receivables
Long-term debt
Lease liabilities
Long-term provisions
Post-retirement benefit obligations
Long-term deferred income
Long-term financial liabilities
Deferred tax liabilities
94 304
14 382
15 531
11 343
465
2 235
5 294
82 500
14 266
16 550
10 063
372
276
10 549
The year-on-year decrease in trade and other receivables is mainly due
to lower sales volumes and prices in June 2023 compared to June 2022,
the receipt of a dividend from ORYX GTL Limited included in the 2022
receivable and the R2,6 billion Sasol Oil slate balance receivable in 2022
while it is a payable in the current year.
Non-current liabilities
23
Excluding AUC
Commentary
143 554
134 576
Short-term debt
Short-term provisions
Tax payable
Trade and other payables
Short-term deferred income
Short-term financial liabilities
Bank overdraft
31 758
4 319
1 876
48 518
966
1 162
159
24 184
3 144
3 142
53 555
724
6 851
173
Current liabilities
88 758
91 773
Liabilities in disposal groups held for sale
Total equity and liabilities
2
2
433 838
419 548
SASOL INTEGRATED REPORT 2023
50
Deferred tax
Deferred tax assets increased by R6,5 billion compared to the prior year
mainly due to our US Operations which saw an increase as a result of
the weakening rand/US dollar exchange rate and tax loss carry-forwards.
The deferred tax liability in South Africa decreased as a result of the
Secunda liquid fuel refinery impairment.
Long-term debt
Our total debt was R124,3 billion compared to R105,1 billion at
30 June 2022, with approximately R120,5 billion (US$6,4 billion)
denominated in US dollar. The weaker closing rand/US dollar exchange
rate had a R16 billion impact on the debt balance. At 30 June 2023,
gearing was 44,7% (30 June 2022: 41,8%).
Short-term debt
Short-term debt includes the US$1,5 billion bond which is repayable
in March 2024.
Trade and other payables
Trade and other payables decreased compared to the prior year mainly due to
the accrual in 2022 for crude oil derivatives that settled out of the money.
Short-term financial liabilities
Short-term financial liabilities decreased compared to the prior year
mainly due to Sasol reverting to the use of put options for crude oil,
replacing crude oil zero cost collars, for which the balance at the end of
June 2022 was R6,2 billion.
