JOHANNESBURG, Aug. 20,
2024 /PRNewswire/ --
Earnings performance
Sasol's financial results for the year ended 30 June 2024 were negatively impacted by
challenging market conditions, with continued pressure from
constrained margins and depressed chemicals prices resulting in
turnover of R275,1 billion being 5% lower than the prior year.
However, these factors were partially offset by the stronger rand
oil price, improved refining margins, reduced total costs and
higher sales volumes. Additionally, Sasol's stronger operational
performance in the fourth quarter contributed to an overall
stronger performance in the second half of the year.
A loss before interest and tax (LBIT) of R27,3 billion was
incurred compared to earnings before interest and tax (EBIT) of
R21,5 billion in the prior year. This decline was mainly due to
increased asset impairments, lower earnings before interest, tax,
depreciation and amortisation, translation losses and reduced
derivative gains.
An impairment loss of R56,7 billion net of tax (R74,9 billion
gross) was recorded, mainly relating to the following
impairments:
- Chemicals America Ethane value chain (Alcohols, Alumina,
Ethylene Oxide, Ethylene Glycol and associated shared assets) cash
generating unit (CGU) of R45,5 billion net of tax (R58,9 billion
gross). The impairments are primarily driven by external
conditions, including prolonged softer market pricing and
outlook;
- A total of R3,9 billion net of tax (R5,3 billion gross)
relating to the Chemicals Africa Polyethylene, Chlor-Alkali &
Polyvinyl Chloride, and South African Wax value chain CGUs, of
which R0,9 billion net of tax (R1,2 billion gross) 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 R5,7 billion net of tax
(R7,8 billion gross), which remains fully impaired at 30 June 2024.
The prior year included impairments of R33,7 billion (gross)
mainly due to the Secunda liquid fuels refinery CGU (R35,3
billion), South African Wax value chain CGU (R0,9 billion), China
Essential Care Chemicals CGU (R0,9 billion), offset by a reversal
of the US Tetramerisation CGU impairment (R3,6 billion).
Key
metrics
|
2024
|
2023
|
Change
%
|
(LBIT)/EBIT (R
million)
|
(27
305)
|
21 520
|
> (100)%
|
Headline earnings (R
million)
|
11
513
|
33 777
|
(66) %
|
Basic (loss)/earnings
per share (Rand)
|
(69,94)
|
14,00
|
> (100)%
|
Headline earnings per
share (Rand)
|
18,19
|
53,75
|
(66) %
|
Interim dividend (Rand
per share)
|
2,00
|
7,00
|
(71) %
|
Final dividend (Rand
per share)
|
-
|
10,00
|
> (100)%
|
|
|
Net asset
value
|
2024
|
2023
|
Change
%
|
Total assets (R
million)
|
364 980
|
433 838
|
(16) %
|
Total liabilities (R
million)
|
217 553
|
232 314
|
6 %
|
Total equity (R
million)
|
147
427
|
201
524
|
(27) %
|
Turnover
|
|
EBIT/(LBIT)1
|
2024
|
2023
|
|
2024
|
2023
|
R million
|
R million
|
|
R million
|
R million
|
|
|
Energy business
|
|
|
28
876
|
27 666
|
Mining
|
3 210
|
2 580
|
12
158
|
11 988
|
Gas
|
6 703
|
6 432
|
118
864
|
118 708
|
Fuels
|
18
947
|
(7 128)
|
|
|
Chemicals business
|
|
|
66
883
|
70 586
|
Africa
|
6 290
|
17 669
|
41
805
|
44 942
|
America
|
(61 209)
|
(543)
|
42
201
|
48 194
|
Eurasia
|
(2 388)
|
(1 188)
|
-
|
-
|
Corporate Centre
|
1 142
|
3 698
|
310
787
|
322 084
|
Group performance
|
(27 305)
|
21 520
|
(35 676)
|
(32 388)
|
Intersegmental
turnover
|
|
275
111
|
289 696
|
External turnover
|
|
1 Loss
before interest and tax
|
Dividend
The Company's dividend policy was based on 2,5x to 2,8x Core
headline earnings per share (CHEPS). The disconnect between
headline earnings and cashflow generation, as well as elevated
leverage levels, has necessitated a revision to the company's
dividend policy.
The Sasol Limited board of directors (the Board) approved a
change in the Company's dividend policy. The revised policy is
based on 30% of free cash flow generated provided that net debt
(excluding leases) is below USD4
billion on a sustained basis. Free cash flow is defined as
before discretionary capital spend and dividends paid.
The actual net debt for 2024 of USD4,1
billion exceeds the net debt trigger in the new dividend
policy and results in no final dividend being declared for 2024,
resulting in a full year dividend of R2 per share.
Short-form statement
This announcement is the responsibility of the Board and is only
a summary of the information in Sasol Limited's Annual Financial
Statements for the year ended 30 June 2024 (the Annual
Financial Statements). The Annual Financial Statements have been
audited by Sasol's external auditors, KPMG, who expressed an
unmodified opinion thereon. Financial figures in this announcement
have been correctly extracted from the audited Annual Financial
Statements. This announcement does not include the information
required pursuant to paragraph 16A(j) of IAS 34 'Interim Financial
Reporting'. The information in this announcement has not been
audited and reported on by Sasol Limited's external auditors.
Any investment decision should also take into consideration the
information contained in the Annual Financial Statements, published
on SENS on 20 August 2024, via the JSE link. The Annual
Financial Statements, including KPMG's unmodified opinion, are
available through a secure electronic manner at the election of the
person requesting inspection, and have been published and can be
found on the company's
website,https://www.sasol.com/investor-centre/financial-results,
and can also be viewed on the JSE link,
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SOL/FY24Result.pdf
Important information
Sasol will present its 2024 financial results on Tuesday,
20 August 2024 at 09h00 (SA time).
This will be followed by a market call, hosted by President and
Chief Executive Officer, Simon
Baloyi, and Chief Financial Officer, Hanré Rossouw, to
address questions.
Please connect to the call via the webcast link:
https://www.corpcam.com/Sasol20082024
or via teleconference call link:
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=2106525&linkSecurityString=8ab1fbf22
A recording of the presentation will be available on the website
thereafter at
https://www.sasol.com/investor-centre/financial-results.
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, VP Investor
Relations
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are
not historical facts and relate to analyses and other information
which are based on forecasts of future results and estimates of
amounts not yet determinable. These statements may also relate to
our future prospects, expectations, developments, and business
strategies. Examples of such forward-looking statements include,
but are not limited to, the capital cost of our projects and the
timing of project milestones; our ability to obtain financing to
meet the funding requirements of our capital investment programme,
as well as to fund our ongoing business activities and to pay
dividends; statements regarding our future results of operations
and financial condition, and regarding future economic performance
including cost containment, cash conservation programmes and
business optimisation initiatives; recent and proposed accounting
pronouncements and their impact on our future results of operations
and financial condition; our business strategy, performance
outlook, plans, objectives or goals; statements regarding future
competition, volume growth and changes in market share in the
industries and markets for our products; our existing or
anticipated investments, acquisitions of new businesses or the
disposal of existing businesses, including estimates or projection
of internal rates of return and future profitability; our estimated
oil, gas and coal reserves; the probable future outcome of
litigation, legislative, regulatory and fiscal developments,
including statements regarding our ability to comply with future
laws and regulations; future fluctuations in refining margins and
crude oil, natural gas and petroleum and chemical product prices;
the demand, pricing and cyclicality of oil, gas and petrochemical
product prices; changes in the fuel and gas pricing mechanisms in
South Africa and their effects on
prices, our operating results and profitability; statements
regarding future fluctuations in exchange and interest rates and
changes in credit ratings; total shareholder return; our current or
future products and anticipated customer demand for these products;
assumptions relating to macroeconomics; climate change impacts and
our climate change strategies, our development of sustainability
within our businesses, our energy efficiency improvement, carbon
and greenhouse gas emission reduction targets, our net zero carbon
emissions ambition and future low-carbon initiatives, including
relating to green hydrogen and sustainable aviation fuel; our
estimated carbon tax liability; cyber security; and statements of
assumptions underlying such statements. Words such as "believe",
"anticipate", "expect", "intend", "seek", "will", "plan", "could",
"may", "endeavour", "target", "forecast" and "project" and similar
expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. By
their very nature, forward-looking statements involve inherent
risks and uncertainties, both general and specific, and there are
risks that the predictions, forecasts, projections, and other
forward-looking statements will not be achieved. If one or more of
these risks materialise, or should underlying assumptions prove
incorrect, our actual results may differ materially from those
anticipated. You should understand that a number of important
factors could cause actual results to differ materially from the
plans, objectives, expectations, estimates and intentions expressed
in such forward-looking statements. These factors and others are
discussed more fully in our most recent annual report on Form 20-F
filed on 1 September 2023 and in
other filings with the United States Securities and Exchange
Commission. The list of factors discussed therein is not
exhaustive; when relying on forward-looking statements to make
investment decisions, you should carefully consider foregoing
factors and other uncertainties and events, and you should not
place undue reliance on forward-looking statements. Forward-looking
statements apply only as of the date on which they are made, and we
do not undertake any obligation to update or revise any of them,
whether as a result of new information, future events or
otherwise.
Please note: One billion is defined as one thousand
million, bbl – barrel, bscf – billion standard cubic feet, mmscf –
million standard cubic feet, oil references Brent crude, mmboe –
million barrels oil equivalent. All references to years refer to
the financial year ending 30 June. Any reference to a calendar year
is prefaced by the word "calendar".
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SOURCE Sasol Limited