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SASOL LIMITED: DECLARATION OF DEALING FOR THE YEAR ENDED JUNE 30, 2022

JOHANNESBURG, August 4, 2022 /PRNewswire/ — Sasol Financial Performance for the Year Ended June 30, 2022 (FY2022) was supported by a favorable macroeconomic environment, with rising crude oil prices, refining margins and chemical prices amid heightened geopolitical tensions. This resulted in a strong improvement in gross margin compared to the previous year, combined with strong performance in terms of costs and investments. These benefits were partially offset by operational challenges in our South African integrated value chains, which resulted in lower production, as shown in the annual business performance metrics published on 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 are expected to increase by 36% to 56%, from R48.4 billion in the prior year to R66.0 . billion and 75.6 billion rand. This was primarily due to a strong recovery in Brent crude oil and chemicals prices, partially offset by realized losses on oil hedges and lower chemicals sales volumes.

Shareholders are advised that, for fiscal year 2022:

  • Earnings per share (EPS) is expected to be between R60.59 and R63.51 compared to prior year earnings per share of R14.57 (representing an increase of more than 100%);

  • Overall Earnings per Share (HEPS) is expected to be between R42.84 and R50.74 compared to prior year Overall Earnings per Share of R39.53 (representing an increase of 8% to 28%); and

  • Baseline HEPS (CHEPS*) is expected to be between R65.21 and R70.76 compared to the previous year’s CHEPS of R27.74.

Notable non-cash adjustments (pre-tax) for fiscal year 2022 include:

  • Unrealized losses of R5.2 billion on the translation of monetary assets and liabilities and the valuation of financial instruments and derivative contracts;

  • Net gain of R9.9 billion on revaluation items, mainly due to:
    – a gain of 4.9 billion rand on the realization of the foreign currency conversion reserve (FCTR) on the disposal of Sasol Canada’s shale gas assets;
    – a gain of 3.7 billion rand on the sale of a 30% stake in the Republic of Mozambique Pipelines Company (ROMPCO);
    – a gain of 2.9 billion rand on the realization of the FCTR on the sale of the European Wax activity; and
    – a R1.4 billion impairment reversal on 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 alcohol market personal hygiene during and after the COVID-19 pandemic;
    – partly offset by a loss on disposal of property, plant and equipment of R2.8 billion in the Chemicals America segment.

The financial information on which this trading statement is based has not been reviewed and has not been reported on by the Company’s external auditors.

Sasol will publish its 2022 annual financial results on Tuesday, August 23, 2022 at 09:00 (SA time) followed by a conference call hosted by Fleetwood Grumblerour President and Chief Executive Officer and Hanré Rossouw, our Chief Financial Officer.

Please log into the call via the webcast link: https://www.corpcam.com/Sasol23082022 or via the teleconference call link: https://services.choruscall.za.com/DiamondPassRegistration/register ?confirmationNumber=3629805&linkSecurityString=7a93dfa35.

*Core HEPS is calculated by adjusting overall profit with non-recurring items, profit losses from large capital projects (greater than R4 billion) that have reached a beneficial operation and continue to ramp up, all gains and translation losses (realized and unrealized), all gains and losses on our derivatives and hedging activities (realized and unrealized), and share-based payments when implementing Broad-Based Transactions Black Economic Empowerment (BBBEE). Adjustments related to the valuation of our derivatives at the end of the period aim to eliminate earnings volatility, as these instruments are valued using forward curves and other market factors at the reporting date and may vary from period to period. We believe that core comprehensive income is a useful measure of the group’s sustainable operating performance.

** Adjusted EBITDA is calculated by adjusting operating income for amortization, share-based payments, revaluation items, change in discount rates of our rehabilitation provisions, all gains and losses unrealized conversion costs 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 presented by other companies. The above 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 present fairly Sasol’s financial condition, changes in equity, results of operations or cash flows.

Disclaimer – Forward-Looking Statements

Sasol may make certain statements herein that are not historical facts and 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 actions taken in response, on the business, results of operations, markets, employees, financial condition and liquidity of Sasol. ; the effectiveness of any measures 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 financing needs of our capital investment program, as well as to fund our ongoing business operations and pay dividends; statements regarding our future operating results and financial condition, and regarding 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 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 planned investments, new business acquisitions or existing business divestitures, including estimates or projections of internal rates of return and future profitability; our estimated oil, gas and coal reserves; the likely future outcome of litigation, legislative, regulatory and tax developments, including statements regarding our ability to comply with future laws and regulations; future fluctuations in refining margins and prices of crude oil, natural gas and petroleum and chemical products; demand, pricing and price cyclicality for oil, gas and petrochemicals; changes in fuel and gas pricing mechanisms South Africa and their effects on prices, our results of operations and our profitability; statements regarding future currency and interest rate fluctuations and changes in credit ratings; total shareholder return; our current or future products and anticipated customer demand for such products; macroeconomic assumptions; the impacts of climate change and our climate change strategies, our development of sustainability within our Energy and Chemicals activities, our objectives for improving energy efficiency, reducing carbon and GHG emissions, our net zero carbon ambition and future low carbon initiatives, including with respect to green hydrogen and sustainable aviation fuel; our estimated carbon tax liability; cyber security; and the statements of assumptions underlying those statements. Words such as ‘believe’, ‘anticipate’, ‘expect’, ‘intend’, ‘seek’, ‘will’, ‘plan’, ‘could’, ‘may’, ‘will’ strive”, “target”, “anticipate” 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. Should one or more of these risks materialize, or should 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 such forward-looking statements. These and other factors are discussed in greater detail in our most recent Annual Report on Form 20-F filed on September 22, 2021 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 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 of them, whether as a result of new information, future events or otherwise.

For more information, please contact:
Investor Relations:
Tiffany Sydow
VP Investor Relations
+27 (0)71 673 1929

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SOURCE Sasol Limited

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