JOHANNESBURG, August 4, 2022 /PRNewswire/ — Sasol’s financial performance for the year ended June 30, 2022 (fiscal year 2022) was supported by a favorable macroeconomic environment, with higher crude oil prices, refining margins and chemical prices against a backdrop of heightened geopolitical tensions. This resulted in a strong improvement in gross margin over the prior year, combined with robust cost and capital expenditure performance. These benefits were partially offset by operational challenges in our South African integrated value chains that resulted in lower production, as reported in the annual business performance metrics published in July 25, 2022 (https://www.sasol.com/investor-centre/financial-results).
Sasol’s adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA**) for the 2022 financial year is expected to rise between 36% and 56% from R48.4 billion in the year previous to between R66.0 billion and R75.6 billion. This is primarily due to a strong recovery in Brent crude and chemical prices, partially offset by realized oil hedge losses and lower chemical sales volumes.
Shareholders are informed that, for the 2022 financial year:
Earnings per share (EPS) are expected to be between R60.59 and R63.51 compared to last year’s earnings per share of R14.57 (representing an increase of more than 100%); Earnings per share (HEPS) are expected to be between R42.84 and R50.74 compared to the previous year’s earnings per share of R39.53 (which represents an increase of between 8% and 28% ); and Core HEPS (CHEPS*) is forecast to be between R65.21 and R70.76 compared to the previous year’s CHEPS of R27.74.
Notable non-cash (pre-tax) adjustments for fiscal year 2022 include:
Unrealized losses of R5.2 billion in the conversion of monetary assets and liabilities and in the valuation of financial instruments and derivative contracts; Net gain of Rs 9.9 billion on remeasurement items mainly due to:
– a gain of R4.9 billion on the realization of the foreign currency translation reserve (FCTR) on the divestment of Sasol Canada’s shale gas assets;
– a gain of 3.7 billion rupiah on the divestment of 30% of the share capital of the Republic of Mozambique Pipelines Company (ROMPCO);
– a gain of R2.9 billion on the realization of FCTR on the divestment of the European wax business; i
– A R1.4 billion impairment investment in the Chemicals Work Up & Heavy Alcohols value chain due to a higher price outlook due to a sustained increase in demand for alcohols in the hygiene market personnel during and after the COVID-19 pandemic;
– partially offset by a property, plant and equipment disposal loss of R2.8 billion in the Chemicals America segment.
The financial information on which this trading statement is based has not been reviewed and reported by the Company’s external auditors.
Sasol will release its 2022 annual financial results on Tuesday. August 23, 2022 at 09:00 (SA time) followed by a conference call hosted by Fleetwood Groblerour President and CEO and Hanré Rossouw, our CFO.
Please join the call using the webcast link: or via the conference call link: https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=3629805&linkSecurityString=7a93dfa35.
* Basic HEPS is calculated by adjusting general income for non-recurring items, significant capital project gains and losses (over RIP 4 billion) that have reached profitable operation and are still accreting, all gains and losses of conversion (realized and unrealized), all gains and losses on our derivatives and hedging activities (realized and unrealized) and share-based payments in the implementation of broad-based black economic empowerment (BBBEE) transactions. The adjustments in relation to the valuation of our derivatives at the end of the period are to eliminate the volatility of earnings, since these instruments are valued using forward curves and other market factors at the date of presentation of the report and may vary from one period to another. We believe that headline earnings are a useful measure of the group’s sustainable operating performance.
** Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortization, share-based payments, revaluation items, change in discount rates for our rehabilitation provisions, all unrealized translation gains and losses and all unrealized gains and losses on our derivatives and hedges. activities.
Adjusted EBITDA and Core HEPS are not defined terms under IFRS and may not be comparable to similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of Sasol managers. The adjustments have been prepared for illustrative purposes only and, by their nature, may not fairly represent Sasol’s financial position, changes in equity, results of operations or cash flows.
Disclaimer – forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts and that relate to analyzes and other information that 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 impact of the novel coronavirus (COVID-19) pandemic and the measures taken in response to the business, results of operations, markets, employees , Sasol’s financial situation and liquidity. ; the effectiveness of the actions taken by Sasol to address or limit any impact of COVID-19 on its business; the capital cost of our projects and the schedule of project milestones; our ability to obtain financing to meet the financing requirements of our capital investment program, as well as to finance our ongoing business activities and pay dividends; statements about our future results of operations and financial condition, and about future economic performance, including cost containment, cash conservation programs and business optimization initiatives; recent and proposed accounting pronouncements and their impact on our future results of operations and financial condition; our business strategy, performance vision, plans, objectives or goals; statements about future competition, volume growth and changes in market share in the industries and markets for our products; our existing or planned investments, acquisitions of new businesses or the sale of existing businesses, including estimates or projections of internal rates of return and future profitability; our estimated reserves of oil, gas and coal; the likely future outcome of judicial, legislative, regulatory and tax developments, including statements about our ability to comply with future laws and regulations; future fluctuations in refining margins and prices for crude oil, natural gas and oil and chemicals; the demand, price and cyclicality of oil, gas and petrochemical prices; changes in fuel and gas pricing mechanisms South Africa and their effects on prices, our operating results and profitability; statements about future fluctuations in currency and interest rates and changes in credit ratings; total shareholder return; our current or future products and anticipated customer demand for those products; hypotheses related to macroeconomics; climate change impacts and our climate change strategies, our development of sustainability within our energy and chemicals businesses, our energy efficiency improvement, carbon and GHG emission reduction targets, our ambition for net zero carbon emissions and future low carbon initiatives, including those related to green hydrogen. and sustainable aviation fuel; our estimated carbon tax liability; cyber security; and statements of assumptions underlying those statements. Words such as “believe,” “anticipate,” “expect,” “try,” “seek,” “will fly,” “plan,” “might,” “might,” “strive,” “goal,” “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 predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialize, or if the underlying assumptions prove incorrect, our actual results could 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 these forward-looking statements. These and other factors are discussed in more detail in our most recent Annual Report on Form 20-F filed September 22, 2021 and in other documents filed 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 the foregoing factors and other uncertainties and events, and you should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Vice President of Investor Relations
+27 (0)71 673 1929
SOURCE Sasol Limited