Sasol Integrated Report 2023 - Book - Page 52
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PERFORMANCE SUMMARY // PROFIT
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
Income statement for the year ended 30 June
PROFIT
Turnover
2023
Rm
R290 billion
Earnings for the year
R9,3 billion
Remeasurement items of
R33,9 billion
Core headline earnings per share
47,71
23
68,54
Year
22
27,74
21
15,08
20
37,83
19
0
10
20
30
40
50
60
70
80
Rand per share
Turnover
Materials, energy and consumables used
Selling and distribution costs
Maintenance expenditure
Employee-related expenditure
Depreciation and amortisation
Other expenses and income
Equity accounted profits, net of tax
Operating profit before remeasurement
items
Remeasurement items affecting operating
profit
289 696
(152 297)
(10 470)
(15 076)
(33 544)
(16 491)
(9 023)
2 623
2022
Restated
Rm
272 746
(123 999)
(8 677)
(13 322)
(32 455)
(14 073)
(31 834)
3 128
Commentary
2021
Rm
201 910
(85 370)
(8 026)
(12 115)
(32 848)
(17 644)
(6 884)
814
55 418
51 514
39 837
(33 898)
9 903
(23 218)
Earnings before interest and tax (EBIT)
Finance income
Finance costs
21 520
2 253
(9 259)
61 417
1 020
(6 896)
16 619
856
(6 758)
Earnings before tax
Taxation
14 514
(5 181)
55 541
(13 869)
10 717
(185)
Earnings for the year
9 333
41 672
10 532
Attributable to
Owners of Sasol Limited
Non-controlling interests in subsidiaries
8 799
534
38 956
2 716
9 032
1 500
9 333
41 672
10 532
Rand
Rand
Rand
14,00
13,02
62,34
61,36
14,57
14,39
Core headline earnings per share decreased by 30% mainly
due to lower gross margin and higher cash fixed costs.
Adjusted EBITDA
23
66,3
71,8
Year
22
Per share information
Basic earnings per share
Diluted earnings per share
Turnover
Turnover increased by 6% compared to the prior year, mainly as a result
of a weaker average rand/US dollar exchange rate, offsetting lower
Brent crude oil and chemical prices.
Materials, energy and consumables used
Increase of 23% relates to higher feedstock, electricity and gas prices.
Other expenses and income
Other expenses and income decreased compared to the prior year
mainly due to gains on the valuation of derivative contracts of R3 billion
compared to losses of R18 billion in 2022. 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, as well as our convertible bond
embedded derivative.
Remeasurement items
Remeasurement items affecting operating profit includes net
impairments of R33,6 billion. Refer to property, plant and equipment
under the statement of financial position for detail of the impairments.
Earnings before interest and tax
Earnings before interest and tax (EBIT) of R21,5 billion decreased by
65% compared to the prior year, driven by the inflationary impact on
costs, the softening of the Brent crude oil price and refining margins in
the latter part of the year. Chemicals basket prices were on a declining
trend during 2023, and while we have seen some respite in lower
feedstock and energy prices, gross margin and global demand
remained depressed particularly in our American and Eurasian
operations. In addition, EBIT was influenced by the remeasurement
items mentioned above, while the remeasurement items in 2022
consisted mainly of profit on disposal of businesses of R8,5 billion.
Net finance costs
Finance income increased with 121% mainly due to higher external cash
balances and increased interest rates on fixed and overnight deposits.
Finance costs increased with 34% due to higher global interest rates to
counter inflation and the weaker rand/US dollar exchange rate.
48,4
21
Taxation
35,0
20
Our effective corporate tax rate increased from 25,0% at 30 June 2022
to 35,7% at 30 June 2023. The increase was mainly as a result of the
effect of the full impairment of the South African wax cash generating
unit (CGU) of R0,9 billion, impairment of the Essential Care Chemicals
CGU in Sasol China of R0,9 billion, reversal of impairment processed in
2019 on the Tetramerisation CGU in Lake Charles of R3,6 billion; as well
as the full impairment of R35,3 billion of the Secunda liquid fuels
refinery CGU, on our profit before tax. The adjusted effective tax rate,
excluding equity accounted investments and remeasurements items,
is 30,9% compared to 31,1% in the prior year.
47,6
19
0
10
20
30
40
50
60
70
80
Rand billion
Adjusted EBITDA is lower than the prior year mainly due to
higher cash fixed costs, and lower gross margin arising from
lower Brent crude oil price, increase in external coal and fuel
purchases, higher distribution, feedstock and energy costs,
and lower sales volumes, offset by lower realised derivative
losses, and weakening of the rand/US$ exchange rate.
SASOL INTEGRATED REPORT 2023
51
