JOHANNESBURG, Aug. 12,
2024 /PRNewswire/ --
Trading statement for the financial year ended 30 June 2024
Sasol's financial results for the year ended 30 June 2024 were negatively impacted by
challenging market conditions, with continued pressure from
depressed chemicals prices and constrained margins. However, these
factors were partially offset by the stronger rand/oil price,
improved refining margins 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. Shareholders are referred to the annual production and
sales metrics published on 22 July 2024 for further details
(https://www.sasol.com/investor-centre/financial-results).
Sasol's adjusted earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA*) for the year ended
30 June 2024 are expected to decline by between 2% and
17% from R66,3 billion in the prior year to between R54,7 billion
and R64,7 billion.
Earnings for the year ended 30 June
2024 decreased by more than 100%, and is impacted by the
following notable non-cash adjustments:
- Net loss of R55,8 billion after tax (R75,4 billion gross) on
remeasurement items mainly due to the following impairments**:
- Chemicals America Ethane value chain (Alcohols, Alumina,
Ethylene Oxide, Ethylene Glycols and associated shared assets) cash
generating unit (CGU) of R45,5 billion net of tax
(R58,9 billion gross). Additionally, Chemicals Africa's
Polyethylene, Chlor-Alkali & Polyvinyl Chloride and Wax value
chain CGUs of R3,9 billion net of tax (R5,3 billion
gross). The impairments are primarily driven by external
conditions, including prolonged softer market pricing and
outlook;
- Secunda liquid fuels refinery CGU of R5,7 billion net of
tax (R7,8 billion gross), which remains fully impaired at
30 June 2024.
- Derecognition of deferred tax asset to the value of
R15,3 billion, mainly relating to assessed loss carry forward
on our Chemicals America operations which are not anticipated to be
utilised; and
- Unrealised gains of R4,7 billion (before tax) on the
translation of monetary assets and liabilities, and valuation of
financial instruments and derivative contracts.
Based on the above movements, shareholders are advised that the
Group expects the earnings per share ("EPS') and headline earnings
per share ("HEPS") to be lower than the comparative period. The
following guidance is applicable for the 2024 financial year:
- Basic loss per share (LPS) is expected to be between R68,82 and
R71,48 compared to the prior year basic earnings per share (EPS) of
R14,00 (representing a decrease of more than 100%);
- Headline earnings per share (HEPS) are expected to be between
R12,28 and R21,95 compared to the prior year HEPS of R53,75
(representing a decrease of between 59% to 77%); and
- Core headline earnings per share (CHEPS***) are expected to be
between R35,03 and R43,62 compared to the prior year CHEPS of
R47,71 (representing a decrease of between 9% to 27%).
The financial information underpinning this trading statement
has not been reviewed and reported on by the Company's external
auditors.
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
* Adjusted EBITDA is calculated by adjusting operating profit
for depreciation, amortisation, share-based payments, remeasurement
items, change in discount rates of our rehabilitation provisions,
all unrealised translation gains and losses, and all unrealised
gains and losses on our derivatives and hedging activities.
** An impairment is the result of the carrying value of the
asset in excess of the estimated recoverable amount of the
asset.
*** Core HEPS is calculated by adjusting headline earnings with
non-recurring items, once-off tax adjustments, earnings losses of
significant capital projects (exceeding R4 billion) which have
reached beneficial operation and are still ramping up, all
translation gains and losses (realised and unrealised), all gains
and losses on our derivatives and hedging activities (realised and
unrealised), and share-based payments on the Broad-Based Black
Economic Empowerment (BBBEE) transactions. Adjustments in relation
to the valuation of our derivatives at year end are to remove
volatility from earnings as these instruments are valued using
forward curves and other market factors at the reporting date and
could vary from period to period. We believe core headline earnings
are a useful measure of the group's
sustainable operating performance.
Adjusted EBITDA and Core HEPS are not defined terms under
International Financial Reporting Standards and may not be
comparable with similarly titled measures reported by other
companies. The aforementioned adjustments are the responsibility of
the directors of Sasol. The adjustments have been prepared for
illustrative purposes only and due to their nature, may not fairly
present Sasol's financial position,
changes in equity, results of operations or cash flows.
Retirement of Ms Nomgando Matyumza as non-executive
director
Shareholders and noteholders are advised in terms of paragraph
3.59 of the JSE Limited (JSE) Listings Requirements and 6.39 of the
JSE Debt Listings Requirements, that Ms Nomgando Matyumza will
retire as non-executive director and member of the Audit and
Remuneration Committees of Sasol Limited on 8 September 2024 when she reaches the tenth
anniversary of her appointment to the Sasol Board. Ms Muriel Dube, Sasol's Lead Independent Director,
said: "On behalf of the Board and the Company, I express gratitude
to Nomgando for her conscientious decade-long contribution to Sasol
and wish her a most fulfilling retirement and all of the best for
the future."
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.
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SOURCE Sasol Limited