Sasol Integrated Report 2024 - Book - Page 57
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
INCOME STATEMENT
PROFIT
For the year ended 30 June
2024
Rm
Turnover
R275 billion
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
Loss for the year
R44 billion
Loss on remeasurement items of
R75 billion
Core headline earnings per share
40,28
Year
24
47,71
23
22
68,54
21
27,74
20
2023
Rm
275 111
(137 957)
(10 394)
(15 446)
(35 465)
(15 644)
(13 854)
1 758
289 696
(152 297)
(10 470)
(15 076)
(33 544)
(16 491)
(9 023)
2 623
2022
Rm
272 746
(123 999)
(8 677)
(13 322)
(32 455)
(14 073)
(31 834)
3 128
Operating profit before remeasurement
items
Remeasurement items affecting operating
profit
48 109
55 418
51 514
(75 414)
(33 898)
9 903
(Loss)/earnings before interest and tax
((LBIT)/EBIT)
Finance income
Finance costs
(27 305)
3 226
(10 427)
21 520
2 253
(9 259)
61 417
1 020
(6 896)
(Loss)/earnings before tax
Taxation
(34 506)
(9 739)
14 514
(5 181)
55 541
(13 869)
(Loss)/earnings for the year
(44 245)
9 333
41 672
Attributable to
Owners of Sasol Limited
Non-controlling interests in subsidiaries
(44 271)
26
8 799
534
38 956
2 716
(44 245)
9 333
41 672
Rand
Rand
Rand
(69,94)
(69,94)
14,00
13,02
62,34
61,36
15,08
0
10
20
30 40 50
Rand per share
60
70
80
Core HEPS decreased from R47,71 to R40,28 in 2024
mainly due to lower EBITDA generation arising from lower
Chemical product prices, a decrease in other income due
to the European government incentives in support of the
record high natural gas prices in the prior year, as well as a
decrease in income received from joint ventures (mainly
ORYX GTL).
Per share information
Basic (loss)/earnings per share
Diluted (loss)/earnings per share
Taxation
Our effective corporate tax rate decreased from 35,7% at 30 June 2023 to (28,2)%
at 30 June 2024. The decrease was mainly as a result of the partial write-down of a
deferred tax asset previously recognised on tax losses in the US as it is no longer
considered probable that sufficient future taxable income will be available in the
foreseeable future to fully utilise these losses. The adjusted effective tax rate,
excluding equity accounted investments, remeasurements items and the effect of
the deferred tax asset write-down, is 32,7% compared to 30,9% in the prior year.
SASOL INTEGRATED REPORT 2024
55
Commentary
Turnover
Turnover decreased by 5% compared to the prior year, largely due to lower
Chemical product prices. Sales volumes were in line with the prior year,
with higher Chemical sales volumes offset by lower Energy sales volumes.
Materials, energy and consumables used
Decrease mainly relates to lower feedstock and utility costs.
Other expenses and income
Other expenses and income increased compared to the prior year mainly
due to lower gains on the valuation of derivative contracts, as well as
translation losses relating to effect of the strengthening of the rand on
the translation of foreign operations and intergroup exposure on foreign
currency loans compared to translation gains in the prior year. 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.
Equity accounted profits, net of tax
Equity accounted profits decreased with 33% mainly due to lower profits
from our investment in ORYX GTL Limited, due to lower plant utilisation
rates in 2024.
Remeasurement items
Remeasurement items affecting the 2024 operating loss include the
following impairments:
• Chemicals America Ethane value chain (Alcohols, Alumina, Ethylene
Oxide, Ethylene Glycol and associated shared assets) cash generating
unit (CGU) of R58,9 billion. The impairment is driven mainly by a lower
for longer pricing and softer market conditions;
• A total of R5,3 billion relating to the Chemicals Africa Polyethylene,
Chlor-Alkali and Polyvinyl Chloride, and South African Wax value
chain CGUs, of which R1,2 billion was impaired at 31 December 2023.
The further impairment at 30 June 2024 relates to the Polyethylene
CGU as a result of oversupply and reduced demand in the global
market. The South African Wax value chain CGU remains fully impaired;
and
• Secunda liquid fuels refinery CGU of R7,8 billion, of which R3,9 billion
was impaired at 31 December 2023. The CGU was fully impaired at
30 June 2023, and remains fully impaired at 30 June 2024.
Loss before interest and tax
Loss before interest and tax (LBIT) of R27,3 billion was incurred compared
to the prior year earnings before interest and tax (EBIT) of R21,5 billion,
mainly due to increased impairment of assets, lower earnings before
interest, tax, depreciation and amortisation, translation losses and lower
derivative gains. The business benefitted from a weaker R/US$ average
exchange rate, and a favourable rand oil price, however constrained
margins impacted negatively on our fuels and chemicals businesses.
The financial results were further impacted by various operational
challenges across the business.
