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Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
("Sasol" or "the Company")
Sasol Financing Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/019838/06)
Company code: SFIE
LEI: 378900A5BC68CC18C276
(Sasol Financing, Debt issuer)
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2023
Earnings performance
Sasol’s financial results for the year ended 30 June 2023 were impacted by the volatile global
economic landscape and the underperformance of state-owned enterprises in South Africa, which
continue to impact both our Energy and Chemical businesses. This impact was, to an extent,
offset by a weakening of the Rand/US Dollar exchange rate.
Earnings before interest and tax (EBIT) of R21,5 billion declined 65% compared to the prior year,
mainly due to the impairment of assets, 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 recently seen some respite with lower feedstock
and energy prices, gross margin and global demand remained depressed particularly in our
American and Eurasian segments.
Operating profit of R55,4 billion before remeasurement items increased 8% from the prior year,
benefitting from gains on the translation of monetary assets and liabilities and valuation of financial
instruments and derivative contracts of R6 billion compared to R17,6 billion losses in 2022.
Remeasurement items contributed a net loss of R33,9 billion compared to a net gain of
R9,9 billion in 2022.The remeasurement items for 2023 mainly relate to:
• The full impairment of the South African wax CGU of R0,9 billion, the full impairment of the
Essential Care Chemicals CGU in Sasol China of R0,9 billion, and the full reversal of
impairment recognised in 2019 on the Tetramerisation CGU in Lake Charles of R3,6 billion;
and
• The Secunda liquid fuels refinery CGU impairment of R8,1 billion at 31 December 2022 after
being negatively impacted by an update in macroeconomic price assumptions including higher
electricity price forecasts and lower gas selling prices. An additional impairment of R27,2
billion was recognised for this CGU resulting in it now being fully impaired. Sasol continues to
advance implementation of its emission reduction roadmap (ERR) in South Africa to achieve a
30% reduction in greenhouse gas emissions by 2030 and comply with the requirements of the
National Environmental Management: Air Quality Act 39 of 2004. The ERR involves the
turning down of boilers, implementing energy efficiency projects, reducing coal usage and
integrating 1 200 MW of renewable energy into our operations by 2030. With no significant
additional gas to restore volumes back to historic levels, the ERR assumes lower production
volumes post 2030 and also results in increased cost of coal and capital expenditure.
Optimisation of the ERR is ongoing with several technology and feedstock solutions underway
to partially recover volume post 2030, however the maturity thereof needs to be further
progressed before it can be incorporated in the impairment calculation. Although the chemical
CGUs in the Secunda complex were also negatively impacted, their respective recoverable
amounts remained above carrying values given the products’ higher derivative value.
In addition, profit on disposal of businesses of R8,5 billion was recorded in 2022 compared to
R0,7 billion for 2023.
Key metrics 2023 2022 Change %
EBIT (R million) 21 520 61 417 (65)
Headline earnings (R million) 33 777 29 735 14
Basic earnings per share (Rand) 14,00 62,34 (78)
Headline earnings per share (Rand) 53,75 47,58 13
Interim dividend (Rand per share) 7,00 - 100
Final dividend (Rand per share) 10,00 14,70 (32)
Net asset value 2023 2022 Change %
Total assets (R million) 433 838 419 548 3
Total liabilities (R million) 232 314 226 351 (3)
Total equity (R million) 201 524 193 197 4
Turnover EBIT/(LBIT)1
2022 2023 2023 2022
Restated
R million R million R million R million
Energy business
24 386 27 666 Mining 2 580 3 456
11 941 11 988 Gas 6 432 14 622
99 972 118 708 Fuels (7 128) 27 959
Chemicals business
67 275 70 586 Africa 17 669 24 072
41 926 44 942 America (543) 981
55 419 48 194 Eurasia (1 188) 7 552
56 - Corporate Centre 3 698 (17 225)
300 975 322 084 Group performance 21 520 61 417
(28 229) (32 388) Intersegmental turnover
272 746 289 696 External turnover
1 Loss before interest and tax
Sasol’s results contain an adjustment in respect of an error in the 2022 financial year
related to purchases and sales of inventory with the same counterparty that were entered
into in contemplation of one another to mitigate production shortfalls and facilitate sales to
customers in the coastal areas of South Africa. These transactions were recorded on a
gross basis instead of being accounted for as a single exchange transaction resulting in a
reclassification between turnover and materials, energy and consumables used. Earnings
were not impacted. The Company evaluated the effect of the prior period adjustments,
both quantitatively and qualitatively, and concluded that the correction neither had a
material impact on, nor requires amendment of, any of the Company’s previously issued
or filed financial statements taken as a whole.
Dividend
The Sasol Limited board of directors (the Board) declared a final gross cash dividend of South
African 1 000 cents per share (2022 – 1 470 cents per ordinary share) for the year ended
30 June 2023. The cash dividend is payable on the ordinary shares and the Sasol BEE ordinary
shares. The Board is satisfied that the Company is liquid and solvent, and that capital remaining
after payment of the interim dividend is sufficient to support the current operations for the coming
year. The final dividend has been declared out of retained earnings (income reserves). The South
African dividend withholding tax rate is 20%. At the declaration date, there are 634 336 265
ordinary and 6 331 347 Sasol BEE ordinary shares in issue. The net final dividend amount
payable to shareholders who are not exempt from the dividend withholding tax, is 800 cents per
share, while the dividend amount payable to shareholders who are exempt from dividend
withholding tax is 1 000 cents per share.
The salient dates for holders of ordinary shares and Sasol BEE ordinary shares for the year
ended 30 June 2023 are:
Declaration date Wednesday, 23 August 2023
Last day for trading to qualify for and participate in the Tuesday, 12 September 2023
interim dividend (cum dividend)
Trading ex dividend commences Wednesday, 13 September 2023
Record date Friday, 15 September 2023
Dividend payment date (electronic and certificated Monday, 18 September 2023
register)
The salient dates for holders of American Depository Receipts for the year ended
30 June 2023 are:1
Ex dividend on New York Stock Exchange (NYSE) Thursday, 14 September 2023
Record date Friday, 15 September 2023
Approximate date for currency conversion Tuesday, 19 September 2023
Approximate dividend payment date Friday, 29 September 2023
1 All dates approximate as the NYSE sets the record date after receipt of the dividend
declaration.
The Company’s tax number is 9520018608.
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 2023 (the Annual
Financial Statements). The Annual Financial Statements 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/2023/JSE/ISSE/SOL/FY23Result.pdf
The Annual Financial Statements have been audited by the Group’s auditors,
PricewaterhouseCoopers Inc. (PwC), who expressed an unmodified opinion thereon. Any
investment decision should be based on the information contained in the Annual Financial
Statements. Copies of the Annual Financial Statements may also be requested from the Investor
Relations office, investor.relations@sasol.com or +27 10 344 9280.
Financial numbers 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.
Important information
Sasol’s President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer,
Hanré Rossouw, will present the results at 09h00 (SA time) on 23 August 2023, followed by a
market call to address questions.
Please connect to the call via the webcast link: https://www.corpcam.com/Sasol23082023
or via teleconference call link: https://eu01.z.antigena.com/l/8Yc4uSEhZxbc1_O-
KegnGgSyQn2FVZK57LWXak7vPQxUd-5z~yu4K02l6z_-
CBA6Cqc04j~PN6fvK~V6SXF0XMC5ROR4XFsfJ-h5B_hG5gAbOa56lcRwXqRdwf7-
ef09wB8fe3avulwTcJc-mX0Pv8NwDm6a1AJhLKp-
NUNGGFbxbPPN3XsHZ187q1GIuJVmwGAS4GV74SdmZPQtoync4sKHWGFWyJGIY8nVmF4z
7W4uFAXhU7pFj8mkUUu2uVqpJh
A recording of the presentation will be available on the website thereafter.
23 August 2023
Equity sponsor: Merrill Lynch South Africa (Pty) Limited t/a BofA Securities
Debt sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
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 impact of the novel coronavirus (COVID-19)
pandemic, and measures taken in response, on Sasol’s business, results of operations, markets,
employees, financial condition and liquidity; the effectiveness of any actions taken by Sasol to
address or limit any impact of COVID-19 on its business; 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 Energy and Chemicals 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 31 August 2022 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 ended 30 June. Any reference to a
calendar year is prefaced by the word "calendar".
