Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2019 | |
Document and Entity Information | |
Entity Registrant Name | SASOL LTD |
Entity Central Index Key | 0000314590 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Income Statement
Income Statement - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | ||
Income Statement | ||||
Turnover | R 99,170 | R 102,944 | R 203,576 | |
Materials, energy and consumables used | (46,373) | (45,960) | (90,589) | |
Selling and distribution costs | (3,831) | (3,794) | (7,836) | |
Maintenance expenditure | (5,265) | (4,676) | (10,227) | |
Employee-related expenditure | (16,445) | (14,789) | (29,928) | |
Exploration expenditure and feasibility costs | (381) | (167) | (663) | |
Depreciation and amortisation | (10,977) | (8,392) | (17,968) | |
Other expenses and income | (6,584) | (5,850) | (19,097) | |
Translation (losses)/gains | (227) | 454 | 604 | |
Other operating expenses and income | (6,357) | (6,304) | (19,701) | |
Equity accounted profits, net of tax | 370 | 876 | 1,074 | |
Operating profit before remeasurement items | 9,684 | 20,192 | 28,342 | |
Remeasurement items | [1] | 169 | 599 | (18,645) |
Earnings before interest and tax (EBIT) | 9,853 | 20,791 | 9,697 | |
Finance income | 381 | 420 | 787 | |
Finance costs | (2,636) | (252) | (1,253) | |
Earnings before tax | 7,598 | 20,959 | 9,231 | |
Taxation | (3,092) | (5,057) | (3,157) | |
Earnings for the period | [2] | 4,506 | 15,902 | 6,074 |
Attributable to | ||||
Owners of Sasol Limited | 4,053 | 14,740 | 4,298 | |
Non-controlling interests in subsidiaries | 453 | 1,162 | 1,776 | |
Earnings for the period | [2] | R 4,506 | R 15,902 | R 6,074 |
Per share information | ||||
Basic earnings per share (in rand per share) | R 6.56 | R 23.92 | R 6.97 | |
Diluted earnings per share (in rand per share) | R 6.53 | R 23.76 | R 6.93 | |
[1] | In FY19, remeasurement items included the impairments of the Tetramerization and EO/EG value chains of R7.4 billion (US$526 million) and R5.5 billion (US$388 million), respectively, an impairment of the Ammonia value chain of R3.3 billion and a further impairment of the shale gas assets in Canada of R1.9 billion (CAD181 million). | |||
[2] | Earnings decreased by 72% to R4.5 billion compared to the prior period. This resulted from a 9% decrease in the rand per barrel price of Brent crude oil, softer global chemical prices and refining margins, lower productivity at our Mining operations and a negative contribution from the LCCP. As the LCCP units progress through the sequential beneficial operation schedule, our revenues do not yet match the costs expensed. We do expect that for the second half of FY20 revenue will match the costs expensed better. The LCCP negatively impacted earnings by R2.8 billion. Earnings were further impacted by approximately R2.0 billion in finance charges for the period as the LCCP units reach beneficial operation. |
Income Statement (Parenthetical
Income Statement (Parenthetical) R in Millions, $ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019ZAR (R) | Jun. 30, 2019CAD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019ZAR (R) | ||
Statement | |||||
Increase (decrease) in earnings for the period (as a percent) | (72.00%) | ||||
Earnings for the period | [1] | R 4,506 | R 6,074 | ||
Increase (decrease) in Brent crude oil price | (9.00%) | ||||
Earnings before interest and tax (EBIT) | R 9,853 | 9,697 | |||
Finance charges | (2,636) | (1,253) | |||
Tetramerization value chain | |||||
Statement | |||||
Impairment | $ (526) | (7,400) | |||
EO/EG value chain | |||||
Statement | |||||
Impairment | $ (388) | (5,500) | |||
Ammonia value chain | |||||
Statement | |||||
Impairment | (3,300) | ||||
Canadian shale gas assets | |||||
Statement | |||||
Impairment | $ (181) | R (1,900) | |||
Lake Charles Chemicals Project (LCCP) | |||||
Statement | |||||
Earnings before interest and tax (EBIT) | (2,800) | ||||
Finance charges | R (2,000) | ||||
[1] | Earnings decreased by 72% to R4.5 billion compared to the prior period. This resulted from a 9% decrease in the rand per barrel price of Brent crude oil, softer global chemical prices and refining margins, lower productivity at our Mining operations and a negative contribution from the LCCP. As the LCCP units progress through the sequential beneficial operation schedule, our revenues do not yet match the costs expensed. We do expect that for the second half of FY20 revenue will match the costs expensed better. The LCCP negatively impacted earnings by R2.8 billion. Earnings were further impacted by approximately R2.0 billion in finance charges for the period as the LCCP units reach beneficial operation. |
Statement of comprehensive inco
Statement of comprehensive income - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | ||
Statement of comprehensive income | ||||
Earnings for the period | [1] | R 4,506 | R 15,902 | R 6,074 |
Other comprehensive income, net of tax | ||||
Items that can be subsequently reclassified to the income statement | (1,866) | 3,817 | 1,353 | |
Effect of translation of foreign operations | (1,743) | 4,169 | 1,533 | |
Effect of cash flow hedges | (156) | (452) | (287) | |
Tax on items that can be subsequently reclassified to the income statement | 33 | 100 | 107 | |
Items that cannot be subsequently reclassified to the income statement | (35) | 56 | (265) | |
Remeasurements on post-retirement benefit obligations | (128) | 5 | (531) | |
Fair value of investments through other comprehensive income | 75 | 99 | 136 | |
Tax on items that cannot be subsequently reclassified to the income statement | 18 | (48) | 130 | |
Total comprehensive income for the period | 2,605 | 19,775 | 7,162 | |
Attributable to | ||||
Owners of Sasol Limited | 2,155 | 18,601 | 5,377 | |
Non-controlling interests in subsidiaries | 450 | 1,174 | 1,785 | |
Total comprehensive income for the period | R 2,605 | R 19,775 | R 7,162 | |
[1] | Earnings decreased by 72% to R4.5 billion compared to the prior period. This resulted from a 9% decrease in the rand per barrel price of Brent crude oil, softer global chemical prices and refining margins, lower productivity at our Mining operations and a negative contribution from the LCCP. As the LCCP units progress through the sequential beneficial operation schedule, our revenues do not yet match the costs expensed. We do expect that for the second half of FY20 revenue will match the costs expensed better. The LCCP negatively impacted earnings by R2.8 billion. Earnings were further impacted by approximately R2.0 billion in finance charges for the period as the LCCP units reach beneficial operation. |
Statement of financial position
Statement of financial position - ZAR (R) R in Millions | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Assets | |||||
Property, plant and equipment | [1] | R 282,349 | R 233,549 | R 181,552 | |
Assets under construction | [2] | 83,474 | 127,764 | 184,007 | |
Right of use assets | [3] | 16,475 | |||
Goodwill and other intangible assets | 3,299 | 3,357 | 2,792 | ||
Equity accounted investments | 10,276 | 9,866 | 10,961 | ||
Post-retirement benefit assets | 1,151 | 1,274 | 1,292 | ||
Deferred tax assets | [4] | 9,686 | 8,563 | 4,302 | |
Other long-term assets | 7,181 | 7,580 | 7,223 | ||
Non-current assets | 413,891 | 391,953 | 392,129 | ||
Assets in disposal groups held for sale | 1,302 | 2,554 | 136 | ||
Inventories | 30,475 | 29,646 | 31,203 | ||
Trade and other receivables | 25,724 | 29,308 | 30,515 | ||
Short-term financial assets | [5] | 2,279 | 630 | 2,602 | |
Cash and cash equivalents | 12,674 | 15,877 | 15,876 | ||
Current assets | 72,454 | 78,015 | 80,332 | ||
Total assets | 486,345 | 469,968 | 472,461 | ||
Equity and liabilities | |||||
Shareholders' equity | 222,645 | 219,910 | 235,997 | ||
Non-controlling interests | 6,001 | 5,885 | 6,241 | ||
Total equity | 228,646 | 225,795 | 242,238 | R 228,608 | |
Long-term debt | 121,287 | 127,350 | 114,013 | ||
Lease liabilities | [3] | 15,939 | 7,445 | 7,216 | |
Long-term provisions | 17,974 | 17,622 | 15,621 | ||
Post-retirement benefit obligations | 12,850 | 12,708 | 12,141 | ||
Long-term deferred income | 560 | 924 | 850 | ||
Long-term financial liabilities | [6] | 2,142 | 1,440 | 433 | |
Deferred tax liabilities | [4] | 28,791 | 27,586 | 28,773 | |
Non-current liabilities | 199,543 | 195,075 | 179,047 | ||
Liabilities in disposal groups held for sale | 411 | 488 | 44 | ||
Short-term debt | [7] | 18,380 | 3,783 | 10,243 | |
Short-term financial liabilities | 1,348 | 765 | 1,264 | ||
Other current liabilities | [8] | 38,013 | 44,004 | 39,519 | |
Bank overdraft | 4 | 58 | 106 | ||
Current liabilities | 58,156 | 49,098 | 51,176 | ||
Total equity and liabilities | R 486,345 | R 469,968 | R 472,461 | ||
[1] | Includes assets under construction capitalised of R69 billion and depreciation for the period of R10 billion | ||||
[2] | Actual capital expenditure, including accruals, amounted to R21 billion. This includes R10 billion (US$0.7 billion) relating to the LCCP. R69 billion was capitalised to property, plant and equipment, including R55 billion relating to the LCCP | ||||
[3] | Refer to page 15 for the impact of the adoption of IFRS 16 ‘Leases’ | ||||
[4] | Deferred tax assets and liabilities are determined based on the tax status and rates of the underlying entities. The increase in deferred tax assets relate to our US Operations. | ||||
[5] | Fair value period end adjustments, mainly the zero-cost foreign exchange collars | ||||
[6] | Includes R674 million relating to an embedded derivative contained in the Oxygen Train 17 agreement with Air Liquide, which was recognised as a Finance Lease under IAS 17. With the adoption of IFRS 16 the agreement is recognised as a service agreement | ||||
[7] | Short-term debt includes R14 billion relating to the US$1 billion syndicated loan facility raised in November 2019. | ||||
[8] | The movement mainly relates to the R3.9 billion decrease in capital project related payables as the LCCP nears completion |
Statement of financial positi_2
Statement of financial position (Parenthetical) R in Millions, $ in Billions | 6 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) | Dec. 31, 2019ZAR (R) | ||
Statement | ||||
Assets under construction capitalized | R 69,000 | |||
Depreciation | 10,000 | |||
Actual capital expenditure, including accruals | 21,442 | |||
Construction in progress capitalized to property, plant and equipment | 69,000 | |||
Short-term debt | [1] | R 18,380 | ||
Increase (decrease) in capital project related payables | [2] | (3,853) | ||
Syndicated loan facility | ||||
Statement | ||||
Short-term debt | $ 1 | 14,000 | ||
Lake Charles Chemicals Project (LCCP) | ||||
Statement | ||||
Actual capital expenditure, including accruals | $ 0.7 | 10,000 | ||
Construction in progress capitalized to property, plant and equipment | 55,000 | |||
Increase (decrease) in capital project related payables | R (3,900) | |||
Air Liquide | ||||
Statement | ||||
Embedded derivative | R 674 | |||
[1] | Short-term debt includes R14 billion relating to the US$1 billion syndicated loan facility raised in November 2019. | |||
[2] | The movement is mainly as a result of the LCCP nearing completion |
Statement of changes in equity
Statement of changes in equity - ZAR (R) R in Millions | Shareholders' equity | Share capital | Retained earnings | Share-based payment reserve | Foreign currency translation reserve | Remeasurements on post-retirement benefit obligations | Investment fair value reserve | Cash flow hedge accounting reserve | Non-controlling interests in subsidiaries | Total | |
Balance at beginning of period at Jun. 30, 2018 | R 228,608 | ||||||||||
Restated balance at beginning of period at Jun. 30, 2018 | 228,608 | ||||||||||
Movement in share-based payment reserve | 681 | ||||||||||
Share-based payment expense | 327 | ||||||||||
Deferred tax | (122) | ||||||||||
Sasol Khanyisa transaction | 476 | ||||||||||
Total comprehensive income for the period | 19,775 | ||||||||||
Dividends paid to shareholders | (4,897) | ||||||||||
Final distribution to Sasol Inzalo Public Shareholders | (1,372) | ||||||||||
Dividends paid to non-controlling shareholders in subsidiaries | (557) | ||||||||||
Balance at end of period at Dec. 31, 2018 | R 235,997 | R 9,888 | R 195,789 | R (424) | R 32,653 | R (1,846) | R 105 | R (168) | R 6,241 | 242,238 | |
Balance at beginning of period at Jun. 30, 2018 | 228,608 | ||||||||||
Restated balance at beginning of period at Jun. 30, 2018 | 228,608 | ||||||||||
Disposal of business | (52) | ||||||||||
Movement in share-based payment reserve | 1,552 | ||||||||||
Share-based payment expense | 707 | ||||||||||
Deferred tax | (107) | ||||||||||
Sasol Khanyisa transaction | 952 | ||||||||||
Total comprehensive income for the period | 7,162 | ||||||||||
Dividends paid to shareholders | (8,580) | ||||||||||
Final distribution to Sasol Inzalo Public Shareholders | (1,372) | ||||||||||
Dividends paid to non-controlling shareholders in subsidiaries | (1,523) | ||||||||||
Balance at end of period at Jun. 30, 2019 | 219,910 | 9,888 | 181,706 | 410 | 29,978 | (2,204) | 132 | 5,885 | 225,795 | ||
Adjustment on initial application of IFRS 16, net of tax at Jun. 30, 2019 | [1] | (290) | |||||||||
Restated balance at beginning of period at Jun. 30, 2019 | 225,505 | ||||||||||
Movement in share-based payment reserve | 881 | ||||||||||
Share-based payment expense | 396 | ||||||||||
Deferred tax | (7) | ||||||||||
Sasol Khanyisa transaction | 492 | ||||||||||
Total comprehensive income for the period | 2,605 | ||||||||||
Dividends paid to shareholders | (11) | ||||||||||
Dividends paid to non-controlling shareholders in subsidiaries | (334) | ||||||||||
Balance at end of period at Dec. 31, 2019 | R 222,645 | R 9,888 | R 186,036 | R 713 | R 28,240 | R (2,286) | R 180 | R (126) | R 6,001 | R 228,646 | |
[1] | The adjustment on initial application of IFRS 16 'Leases' relates the derecognition of the IAS 17 finance lease of Oxygen Train 17 and the recognition of the embedded derivative in the Oxygen Train 17 agreement with Air Liquide. Refer to page 15 for the impact of the adoption of IFRS 16. |
Statement of cash flows
Statement of cash flows - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |||
Statement of cash flows | |||||
Cash receipts from customers | R 102,955 | R 103,145 | R 203,613 | ||
Cash paid to suppliers and employees | (83,322) | (78,377) | (152,215) | ||
Cash generated by operating activities | [1] | 19,633 | 24,768 | 51,398 | |
Dividends received from equity accounted investments | 15 | 1,423 | 1,506 | ||
Finance income received | 363 | 343 | 682 | ||
Finance costs paid | [2] | (2,999) | (2,494) | (6,222) | |
Tax paid | (3,301) | (1,339) | (3,946) | ||
Cash available from operating activities | 13,711 | 22,701 | 43,418 | ||
Dividends paid | (11) | (4,897) | (9,952) | ||
Dividends paid to non-controlling shareholders in subsidiaries | (334) | (557) | (1,523) | ||
Cash retained from operating activities | 13,366 | 17,247 | 31,943 | ||
Total additions to non-current assets | (25,295) | (31,736) | (56,734) | ||
Additions to non-current assets | (21,442) | (30,433) | (55,800) | ||
Decrease in capital project related payables | [3] | (3,853) | (1,303) | (934) | |
Additional cash contributions (to)/from equity accounted investments | (137) | 54 | 66 | ||
Proceeds on disposals and scrappings | [4] | 2,032 | 53 | 567 | |
Purchase of investments | (72) | (167) | (222) | ||
Other net cash flow from investing activities | (459) | 114 | (89) | ||
Cash used in investing activities | (23,931) | (31,682) | (56,412) | ||
Final settlement to Sasol Inzalo Public Shareholders | (1,372) | ||||
Proceeds from long-term debt | [5] | 18,504 | 20,470 | 93,884 | |
Repayment of long-term debt | [5] | (23,987) | (12,056) | (69,656) | |
Repayment of lease liabilities | (1,110) | (422) | (344) | ||
Proceeds from short-term debt | [6] | 15,136 | 7,827 | 977 | |
Repayment of short-term debt | (1,270) | (1,629) | (1,730) | ||
Cash generated by financing activities | 7,273 | 12,818 | 23,131 | ||
Translation effects on cash and cash equivalents | 132 | 348 | 162 | ||
Decrease in cash and cash equivalents | (3,160) | (1,269) | (1,176) | ||
Cash and cash equivalents at the beginning of the period | 15,819 | [7] | 17,039 | 17,039 | |
Reclassification to disposal groups held for sale | 11 | (44) | |||
Cash and cash equivalents at the end of the period | [7] | R 12,670 | R 15,770 | R 15,819 | |
[1] | Cash generated by operating activities decreased by 21% to R19.6 billion compared to R24.8 billion in the prior period. This was largely due to the softer macroeconomics and losses attributable to the LCCP. The decrease was partially negated by another strong working capital and cost performance from the foundation business. Working capital decreased by R433 million during the period mainly as a result of focused management actions. | ||||
[2] | Included in finance costs paid are amounts capitalised to assets under construction of R1 974 million. | ||||
[3] | The movement is mainly as a result of the LCCP nearing completion | ||||
[4] | Includes proceeds from the disposal of our investment in Sasol Huntsman GmbH & co KG of EUR91 million (R1 506 million). | ||||
[5] | Includes additional bilateral facilities of US$250 million (R3.7 billion) and R2.2 billion in the local debt market issued under the Domestic Medium Term Note programme offset by net repayment of RCF (US$671 million/R9.9 billion). | ||||
[6] | Short-term debt includes the US$1 billion (R14 billion) syndicated loan facility raised in November 2019. | ||||
[7] | Includes bank overdraft. |
Statement of cash flows (Parent
Statement of cash flows (Parenthetical) € in Millions, R in Millions, $ in Millions | 6 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) | ||
Statement | ||||
Increase (decrease) in cash generated by operating activities (as a percent) | (21.00%) | (21.00%) | (21.00%) | |
Cash generated by operating activities | R 19,633 | [1] | ||
Increase (decrease) in working capital | (433) | |||
Amounts capitalised to assets under construction | 1,974 | |||
Proceeds on disposals and scrappings | 2,032 | [2] | ||
Proceeds from long-term debt | 18,504 | [3] | ||
Repayment of long-term debt | 23,987 | [3] | ||
Proceeds from short-term debt | 15,136 | [4] | ||
Additional bilateral facility, one | ||||
Statement | ||||
Proceeds from long-term debt | $ 250 | 3,700 | ||
Additional bilateral facility, two | ||||
Statement | ||||
Proceeds from long-term debt | 2,200 | |||
Revolving credit facilities | ||||
Statement | ||||
Repayment of long-term debt | 671 | 9,900 | ||
Syndicated loan facility | ||||
Statement | ||||
Proceeds from short-term debt | $ 1,000 | 14,000 | ||
Sasol Huntsman GmbH & co KG | ||||
Statement | ||||
Proceeds on disposals and scrappings | € 91 | R 1,506 | ||
[1] | Cash generated by operating activities decreased by 21% to R19.6 billion compared to R24.8 billion in the prior period. This was largely due to the softer macroeconomics and losses attributable to the LCCP. The decrease was partially negated by another strong working capital and cost performance from the foundation business. Working capital decreased by R433 million during the period mainly as a result of focused management actions. | |||
[2] | Includes proceeds from the disposal of our investment in Sasol Huntsman GmbH & co KG of EUR91 million (R1 506 million). | |||
[3] | Includes additional bilateral facilities of US$250 million (R3.7 billion) and R2.2 billion in the local debt market issued under the Domestic Medium Term Note programme offset by net repayment of RCF (US$671 million/R9.9 billion). | |||
[4] | Short-term debt includes the US$1 billion (R14 billion) syndicated loan facility raised in November 2019. |
Segment report
Segment report | 6 Months Ended |
Dec. 31, 2019 | |
Segment report | |
Segment report | Segment report for the period ended Turnover Earnings before interest and tax (EBIT) Full year Half year Half year Half year Half year Full year 30 Jun 19 31 Dec 18 31 Dec 19 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Segment analysis Rm Rm Rm 26 060 12 584 12 983 Operating Business Units 2 397 3 425 3 812 20 876 9 906 10 348 Mining 1 374 2 661 4 701 5 184 2 678 2 635 Exploration and Production International 1 023 764 (889) 200 912 101 403 98 781 Strategic Business Units 6 549 16 240 8 095 83 803 43 623 41 206 Energy 6 743 9 565 16 566 48 813 23 011 24 642 Base Chemicals (1 488) 3 076 (1 431) 68 296 34 769 32 933 Performance Chemicals 1 294 3 599 (7 040) 78 26 – Group Functions 907 1 126 (2 210) 227 050 114 013 111 764 Group performance 9 853 20 791 9 697 (23 474) (11 069) (12 594) Intersegmental turnover 203 576 102 944 99 170 External turnover Revenue by major product line Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Base Chemicals 24 183 22 668 48 113 Polymers 13 974 12 346 25 864 Solvents 5 965 6 441 13 178 Fertilisers and explosives 2 240 2 333 4 718 Other base chemicals 2 004 1 548 4 353 Performance Chemicals 32 452 34 349 67 228 Organics 24 790 26 193 51 405 Waxes 3 927 4 387 8 474 Advanced materials 3 735 3 769 7 349 Upstream, Energy and Other Coal 906 1 826 3 222 Liquid fuels and crude oil 36 884 39 633 75 819 Gas (methane rich and natural gas) and condensate 3 134 2 991 5 986 Other (Technology, refinery services) 1 148 991 2 308 Revenue from contracts with customers 98 707 102 458 202 676 Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage) 463 486 900 Total external turnover 99 170 102 944 203 576 Segmental earnings performance i,ii,iii Mining – striving towards zero harm, productivity a key focus Mining productivity disappointingly decreased by 7% as a result of increasing geological complexities necessitating additional roof support requirements to ensure safe operations. In addition, unplanned infrastructure challenges coupled with two tragic fatalities at our Thubelisha Colliery led to further downtime. The external contracted coal supply from the Isibonelo Colliery was also severely disrupted due to flooding following above average rainfall in the Secunda area. As a result of the lower production, our inventory levels reduced below target levels necessitating external coal purchases in order to sustain our integrated Secunda value chain. We remain focused on improving productivity to targeted levels. However, we expect further external coal purchases of approximately 1,3 to 1,6 million tons during the second half of FY20 in order to sustain liquid fuels production and enable recovery to targeted stock pile levels. As a result, EBIT decreased by 48% to R1,4 billion compared to the prior period. This was partially negated by increased sales volumes in order to meet internal customer demand. External sales volumes were 19% lower compared to the prior period as we diverted export quality coal to the Secunda Synfuels Operations (SSO) value chain. Our normalised unit cost increased by 15% to R343/ton due to lower overall production levels and cash fixed cost increased above inflation mainly due to higher labour cost. We expect our normalised mining unit cost to be approximately R330 to R350/ton for the full year. Exploration and Production International (E&PI) – consistent operational performance in Mozambique, adversely impacted by lower sales prices EBIT increased by 34% to R1,0 billion compared to the prior period due to a consistent operational performance in Mozambique. Our Mozambican producing operations recorded an EBIT of R1,4 billion, a 12% increase compared to the prior period mainly due to the impact of a favourable Rand/US dollar exchange rate offset by lower sales prices. We expect gas production volumes from the Petroleum Production Agreement in Mozambique to be 114 to 118 bscf, in line with previous market guidance. Gabon achieved an EBIT of R113 million, a 66% decrease compared to the prior period mainly due to lower oil prices and lower volumes negated by lower operating costs. Our Canadian shale gas asset in Montney generated an operating loss of R142 million compared to a loss of R366 million in the prior period as we seek to optimise our drilling activities. We remain committed to divest from this asset as part of our strategic portfolio optimisation. Energy – strong liquid fuels volume performance, with lower refining margins Total liquid fuels sales volumes increased marginally due to higher sales volumes in the wholesale channel, enabled by increased production at SSO and lower reliance on external white product purchases. SSO continues to run stably with refined production volumes up by 5% following the successful completion of a phase shutdown compared to a total West factory shutdown during FY19. Natref production was 8% lower compared to the prior period, mainly as a result of the impact of the planned shutdown during November 2019. External natural gas sales volumes decreased by 2% due to lower market demand in the South African economy. The weaker macroeconomic environment, with lower international oil prices and lower refining margins negatively impacted EBIT which decreased by 30% to R6,7 billion compared to the prior period. This was offset by higher liquid fuels sales volumes and a weaker average Rand/US dollar exchange rate. Cash fixed cost increased by 9% mainly due to higher than expected inflationary increases in electricity costs and equipment service charges. We continue with the execution of our retail expansion strategy and have opened three new retail convenience centres (RCCs) during the period. We are targeting ten new RCCs for the full year. ORYX GTL achieved a utilisation rate of 98% during the period and contributed R701 million to EBIT, a decrease of R255 million compared to the prior period. The decrease was mainly due to lower international oil prices and a 1% decrease in production volumes. We expect to achieve a utilisation rate of 55% to 60% for the full year due to an extended planned shutdown during the second half of the year. Escravos GTL production volumes were lower as both trains were in a planned shutdown from August 2019. Both trains returned to operation during December 2019. Performance Chemicals – challenging macroeconomic environment weighing on performance Total sales volumes increased by 6% compared to the prior period as the LCCP EO/EG plant continues to produce as planned. Excluding LCCP volumes, total sales volumes decreased by 5%, with our organics business recording a 3% decrease in sales volumes. This volume performance was due to a generally softer macroeconomic environment in Europe and Asia, on the back of US/China trade disputes, specifically visible in the automotive market segment. Despite these economic headwinds, our advanced materials portfolio margins remained robust during the period. Our organics portfolio sales price was negatively impacted by the higher share of MEG and lower oleochemicals pricing. EBIT decreased by 64% to R1,3 billion compared to the prior period mainly as a result of the softer macroeconomic environment and R1,6 billion of losses attributable to the LCCP while in the ramp-up phase. The LCCP EO/EG plant realised sales volumes of 144kt (70kt during the first quarter and 74kt during the second quarter of FY20) of MEG during the period compared to 37kt during the last quarter of FY19. The EO/EG plant together with the ETO unit, which reached beneficial operation on 30 January 2020 and the Guerbet and Ziegler units which are anticipated to reach beneficial operation during the last quarter of FY20, are expected to sustainably increase the EBIT from the Performance Chemicals business going forward. Base Chemicals – higher volumes offset by further softening of chemical prices Softer commodity chemical prices were experienced across most of our sales regions and products, largely attributable to weaker global demand and increased global capacity. Our foundation business sales volumes (excluding Polymers US products) were 1% higher compared to the prior period as a result of a phase shutdown during the period versus a total West factory shutdown at SSO during the prior period. Total sales volumes increased by 21% compared to the prior period. Our Base Chemicals average sales basket price decreased by 15% compared to the prior period. As a result of this and losses of R1,2 billion attributable to the LCCP while in the ramp-up phase, EBIT decreased from R3,1 billion in the prior period to a loss of R1,5 billion. The softening of chemical sales prices also resulted in a R464 million further impairment of the Blends and Mining Chemicals and Methyl Isobutyl Ketone (MIBK) cash generating units. The decrease in EBIT was negated by a R936 million profit in relation to the disposal of our 50% equity interest in the Sasol Huntsman maleic anhydride joint venture as we continue to execute on our asset optimisation programme. Polymers US sales volumes increased to 469kt from 116kt during the prior period mainly due to the ethylene cracker startup and the LLDPE plant achieving beneficial operation which is ramping up as planned. Our polymers US average sales basket price decreased by 40% compared to the prior period due to changes in product mix with us re-entering the merchant ethylene market following the new ethylene cracker startup as well as lower global polymer prices. The High-density polyethylene (HDPE) plant continues to produce above expectation. Heightened geopolitical risks, especially in the Middle East, the recent outbreak of COVID-19 and the ongoing trade discussions between China and the US are likely to impact sales prices and volumes for the remainder of FY20. i Forward-looking statements are the responsibility of the Directors and in accordance with standard practice, it is noted that this statement has not been reviewed and reported on by the Company’s auditors. ii All comparisons to the prior period refer to the six months ended 31 December 2018. All numbers are quoted on a pre-tax basis, except for earnings attributable to shareholders. iii All other operational and financial measures (such as cash fixed cost) have not been reviewed and reported on by the Company’s auditors. |
Salient features
Salient features | 6 Months Ended |
Dec. 31, 2019 | |
Salient features | |
Salient features | Salient features for the period ended Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Other financial information Total debt (including bank overdraft) Rm 155 610 131 578 138 636 interest-bearing Rm 155 546 130 800 137 691 non-interest-bearing Rm 64 778 945 Finance expense capitalised Rm 1 974 3 440 6 942 Capital commitments (subsidiaries and joint operations)¹ Rm 49 394 71 248 60 095 authorised and contracted Rm 217 047 187 515 212 848 authorised, not yet contracted Rm 37 827 53 163 43 097 less expenditure to date Rm (205 480) (169 430) (195 850) Capital commitments (equity accounted investments) Rm 1 957 1 018 1 283 authorised and contracted Rm 641 618 715 authorised, not yet contracted Rm 1 912 620 1 100 less expenditure to date Rm (596) (220) (532) Effective tax rate² % 40,7 24,1 34,2 Number of employees³ number 31 363 31 430 31 429 1 During FY19 a misstatement was identified in the calculation of the LCCP capital cost estimate that was included in the capital commitment disclosure as at 31 December 2018 and 30 June 2018. The misstatement related to the inaccurate estimation of the cost still to be incurred on the project. Accordingly, the capital commitments disclosure as at 31 December 2018 that were originally presented as R58 640 million has been revised by R12 608 million (US$878 million) to R71 248 million. Management concluded that the revision is not material to interim financial results. 2 Our effective corporate tax rate increased from 24,1% to 40,7%. The effective corporate tax rate is 12,7% higher than the South African corporate income tax rate of 28%, mainly due to non-deductible finance costs as a result of increased funding required for the LCCP and the increase in US tax losses at a lower US corporate income tax rate. The positive benefit of the lower US corporate income tax rate will dilute our effective corporate tax rate as soon as the LCCP is generating taxable profits. 3 The total number of employees includes permanent and non-permanent employees and the group’s share of employees within joint operations, but excludes contractors and equity accounted investments’ employees. Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Reconciliation of headline earnings Earnings attributable to owners of Sasol Limited 4 053 14 740 4 298 Effect of remeasurement items for subsidiaries and joint operations (169) (599) 18 645 Impairment of property, plant and equipment 464 2 14 161 Impairment of assets under construction – – 4 272 Impairment of goodwill and other intangible assets – – 18 Impairment of other assets 3 – – Reversal of impairment – (957) (949) Profit on disposal of business¹ (983) – (267) Profit on disposal of non-current assets (61) (27) (32) Scrapping of non-current assets 426 376 1 408 Write-off of unsuccessful exploration wells (18) 7 34 Tax effects and non-controlling interests (214) 168 (4 017) Effect of remeasurement items for equity accounted investments – 15 15 Headline earnings 3 670 14 324 18 941 Headline earnings adjustments by segment Mining 106 7 45 Exploration and Production International (18) 7 1 976 Energy (27) 122 247 Base Chemicals (352) (820) 3 190 Performance Chemicals 118 85 13 182 Group Functions 4 – 5 Remeasurement items (169) (599) 18 645 Headline earnings per share² Rand 5,94 23,25 30,72 Diluted headline earnings per share Rand 5,91 23,08 30,54 1 Mainly relates to R461 million profit on the disposal of our investment in Sasol Huntsman GmbH & co KG and the corresponding R475 million release of foreign currency translation reserve. 2 Headline earnings per share refers to disclosure made in terms of the JSE Limited Listing Requirements. The reader is referred to the definitions contained in the 2019 Sasol Limited financial statements. |
Basis of preparation
Basis of preparation | 6 Months Ended |
Dec. 31, 2019 | |
Basis of preparation | |
Basis of preparation | Basis of preparation The condensed consolidated interim financial statements for the six months ended 31 December 2019 have been prepared in accordance with International Financial Reporting Standard (IFRS), IAS 34 ‘Interim Financial Reporting’, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa, 2008, as amended, and the JSE Limited Listings Requirements. The condensed consolidated interim financial statements do not include all the disclosures required for complete annual financial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board. The condensed consolidated interim financial statements are prepared on a going concern basis. The Board is satisfied that the liquidity and solvency of the Company is sufficient to support the current operations for the next 12 months. These condensed consolidated interim financial statements have been prepared in accordance with the historic cost convention except that certain items, including derivative financial instruments, liabilities for cash-settled share-based payment schemes, financial assets at fair value through profit or loss and financial assets designated at fair value through other comprehensive income, are stated at fair value. The condensed consolidated interim financial statements are presented in South African rand, which is Sasol Limited’s functional and presentation currency. The accounting policies applied in the preparation of these condensed consolidated interim financial statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial statements for the year ended 30 June 2019, except for the adoption of IFRS 16 ‘Leases’, and the Amendments to IFRS 9 ‘Financial Instruments’, IAS 39 ‘Financial Instruments: Recognition and Measurement’ and IFRS 7 ‘Financial Instruments: Disclosure’, and IFRIC 23 ‘Uncertainty Over Income Tax Treatments’ with effect from 1 July 2019. The condensed consolidated interim financial statements appearing in this announcement are the responsibility of the directors. The directors take full responsibility for the preparation of the condensed consolidated interim financial statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for this set of condensed consolidated interim financial statements and has supervised the preparation thereof in conjunction with the Senior Vice President: Financial Control Services, Moveshen Moodley CA(SA). The condensed consolidated interim financial statements were approved by the Sasol Limited Board of directors on 21 February 2020. New International Financial Reporting Standards adopted IFRS 16 ‘Leases’ IFRS 16 replaces IAS 17 ‘Leases’ as well as three Interpretations (IFRIC 4 ‘Determining whether an Arrangement contains a Lease’, SIC-15 ‘Operating Leases - Incentives’ and SIC-27 ‘Evaluating the Substance of Transactions Involving the Legal Form of a Lease’). IFRS 16 introduces a single lease accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right of use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Sasol adopted IFRS 16 with effect from 1 July 2019 using the modified retrospective approach, which allows the cumulative effect of initially applying the standard to be recognised in equity as an adjustment to the opening retained earnings at adoption date, with no restatement of comparative financial information required. The adoption of the standard has a material effect on the group’s financial statements, significantly increasing the group’s recognised assets and liabilities. IFRS 16 provides a revised definition for leases whereby contracts that convey the right to control the use of an identified asset for a period of time in exchange for consideration are accounted for as leases. Sasol reviewed contracts previously classified as leases under IAS 17 to determine whether the contract contains a lease on adoption date, and evaluated whether any significant contracts not previously accounted for as leases contained a lease under IFRS 16. At 1 July 2019, additional lease liabilities were recognised for leases previously classified as operating leases under IAS 17. These lease liabilities were measured at the present value of lease payments over the remaining reasonably certain lease period, discounted using entity-specific incremental borrowing rates as of 1 July 2019. The discount rates incorporate factors such as the lessee’s country of operation, the lease term, the nature of the asset and the commencement date of the lease. On transition, the incremental borrowing rates applied in deriving the total lease liability range from 8,2% to 11,5% (South African rand denominated leases), 0,9% to 8,1% (Eurasia) and 3,7% to 5,6% (United States). On 1 July 2019, a corresponding right of use asset was recognised for an amount equal to the aforementioned lease liability, adjusted for any prepaid or accrued lease payment on the contract as at 30 June 2019, as well as for any restoration obligation. In terms of the transition options allowed by IFRS 16, leases with a remaining contract period of less than 12 months from adoption date were not recognised on the statement of financial position but continue to be expensed through the income statement on a straight-line basis. As allowed practical expedients in IFRS 16, initial direct costs were excluded from the measurement of the right of use asset at adoption date, a single discount rate was used in certain instances for a portfolio of leases with reasonably similar characteristics, hindsight was used in the determination of the lease term in the case of renewal or termination options and relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review to determine that no onerous contracts existed at 1 July 2019. With the application of the definition of leases contained in IFRS 16, certain contracts previously accounted for as operating or finance leases under IAS 17 are no longer accounted for as leases, but rather as service agreements. This was mainly where it was determined that Sasol do not control how and for what purpose the asset is used. For leases previously classified as finance leases, the respective right of use assets and lease liabilities were measured at adoption date at the same amounts as under IAS 17 immediately preceding the adoption of IFRS 16. The impact of the adoption of IFRS 16 on the group’s statement of financial position at 1 July 2019 is as follows: 30 June IFRS 16 1 July 2019 Impact 2019 Rm Rm Rm Statement of financial position Assets Property, plant and equipment 233 549 (7 417) 226 132 Assets under construction 127 764 (71) 127 693 Right of use assets – 16 045 16 045 Goodwill and other intangible assets 3 357 – 3 357 Equity accounted investments 9 866 – 9 866 Post-retirement benefit assets 1 274 – 1 274 Deferred tax assets 8 563 – 8 563 Other long-term assets 7 580 (191) 7 389 Non-current assets 391 953 8 366 400 319 Assets in disposal groups held for sale 2 554 – 2 554 Inventories 29 646 – 29 646 Trade and other receivables 29 308 (13) 29 295 Short-term financial assets 630 – 630 Cash and cash equivalents 15 877 – 15 877 Current assets 78 015 (13) 78 002 Total assets 469 968 8 353 478 321 Equity and liabilities Shareholders’ equity 219 910 (290) 219 620 Non-controlling interests 5 885 – 5 885 Total equity 225 795 (290) 225 505 Long-term debt 127 350 (1 005) 126 345 Lease liabilities 7 445 7 933 15 378 Long-term provisions 17 622 – 17 622 Post-retirement benefit obligations 12 708 – 12 708 Long-term deferred income 924 (152) 772 Long-term financial liabilities 1 440 624 2 064 Deferred tax liabilities 27 586 (111) 27 475 Non-current liabilities 195 075 7 289 202 364 Liabilities in disposal groups held for sale 488 – 488 Short-term debt 3 783 1 383 5 166 Short-term financial liabilities 765 – 765 Other current liabilities 44 004 (29) 43 975 Bank overdraft 58 – 58 Current liabilities 49 098 1 354 50 452 Total equity and liabilities 469 968 8 353 478 321 The application of the new standard has a significant impact on the presentation and timing of expenditure. Under IFRS 16, expenses related to leases previously classified as operating leases are now recognised in the income statement over the lease term as amortisation of the right of use asset and interest expense relating to the lease liability, whereas these expenditures were previously predominantly disclosed as expenditure on ‘Selling and distribution costs’, ‘Maintenance expenditure’ and ‘Other operating expenses’ on a straight-line basis. Following the adoption of IFRS 16, payments relating to leases previously classified as operating leases are presented under cash flow from financing activities, representing the payment of principal, and as operating cash flows, representing the payment of interest. Under IAS 17, these payments were primarily reflected as cash flows from operating activities. Amendments to IFRS 9 ‘Financial Instruments’, IAS 39 ‘Financial Instruments: Recognition and Measurement’ and IFRS 7 ‘Financial Instruments: Disclosure’ These amendments provide certain reliefs in connection with interest rate benchmark (IBOR) reform. The reliefs relate to hedge accounting and have the effect that IBOR reform should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness should continue to be recorded in the income statement. The IBOR reform amendment was early adopted. The adoption of these amendments had no impact on the group’s financial statements. IFRIC 23 ‘Uncertainty Over Income Tax Treatments’ IFRIC 23 clarifies how the recognition and measurement requirements of IAS 12 ‘Income taxes’ are applied where there is uncertainty over income tax treatments. The adoption of IFRIC 23 had no impact on the group at 31 December 2019. |
Litigation and contingency
Litigation and contingency | 6 Months Ended |
Dec. 31, 2019 | |
Litigation and contingency | |
Litigation and contingency | Litigation and contingency As reported previously, the South African Revenue Services (SARS) conducted an audit over a number of years on Sasol Financing International Plc (SFI) which performs an off-shore treasury function for Sasol. The audit culminated in the issuance by SARS of revised tax assessments, based on the interpretation of the place of effective management of SFI. The potential tax exposure is R2,46 billion (including interest and penalties as at 31 December 2019), which is disclosed as a contingent liability. SFI and SARS have come to a mutual agreement that the Tax Court related processes will be held in abeyance pending the outcome of the judicial review application against the SARS decision to register SFI as a South African taxpayer. The legal process is ongoing in this regard and a court date for the hearing of the application has been requested by SFI. On 5 February 2020, a law firm based in the US filed a security class action against Sasol Limited and five of its current and former executive directors. The action alleges that Sasol intentionally misled the markets regarding cost and schedule of the LCCP. Sasol is studying the action. From time to time, Sasol companies are involved in other litigation and similar proceedings in the normal course of business. A detailed assessment is performed on each matter and a provision is recognised where appropriate. Although the outcome of these proceedings and claims cannot be |
Related party transactions
Related party transactions | 6 Months Ended |
Dec. 31, 2019 | |
Related party transactions | |
Related party transactions | Related party transactions The group, in the ordinary course of business, entered into various sale and purchase transactions on an arm’s length basis at market rates with related parties. |
Significant events and transact
Significant events and transactions since 30 June 2019 | 6 Months Ended |
Dec. 31, 2019 | |
Significant events and transactions since 30 June 2019 | |
Significant events and transactions since 30 June 2019 | Significant events and transactions since 30 June 2019 In accordance with IAS34 ‘Interim Financial Reporting’, we have included an explanation of events and transactions which are significant to obtain an understanding of the changes in our financial position and performance since 30 June 2019. A R936 million profit was recognised in relation to the disposal of our 50% equity interest in the Sasol Huntsman maleic anhydride joint venture as we continue to execute on our asset optimisation programme. |
Subsequent events
Subsequent events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | Subsequent events On 13 January 2020, an incident occurred at the LDPE unit. The investigation into the incident is complete. The root cause analysis determined that a piping support structure, within the LDPE emergency vent system, failed during commissioning causing a pipe to dislodge. No major equipment was damaged, and the incident was isolated. Remediation has commenced, however, the replacement of the high pressure piping material components have long lead times. We expect beneficial operation of the LDPE unit to be delayed to the second half of calendar year 2020. Parallel commissioning activities on the remainder of the LDPE unit continue during remediation and every effort will be made to expedite the restoration project. On 14 February 2020, we received approval from the Competition Commission of South Africa to form a new joint venture, which will be managed and operated by our world-class explosives partner and the majority shareholder, Enaex S.A. The downstream portion of our explosives business, classified as a disposal group held for sale since 30 June 2019, will be disposed to the joint venture as a going concern. The process is expected to close by the end of June 2020. |
Financial instruments
Financial instruments | 6 Months Ended |
Dec. 31, 2019 | |
Financial instruments | |
Financial instruments | Financial instruments Fair value Fair value is determined using valuation techniques as outlined unless the instrument is listed in an active market. Where possible, inputs are based on quoted prices and other market determined variables. Fair value hierarchy The table below represents significant financial instruments measured at fair value at the reporting date, or for which fair value is disclosed at 31 December 2019. This includes the US dollar bonds, interest rate swap, ethane swap, embedded derivative and zero-cost foreign exchange collars which were considered to be significant financial instruments for the group based on the amounts recognised in the statement of financial position. The calculation of fair value requires various inputs into the valuation methodologies used. The source of the inputs used affects the reliability and accuracy of the valuations. Significant inputs have been classified into the hierarchical levels in line with IFRS 13. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly). Level 3 Inputs for the asset or liability that are unobservable. IFRS 13 fair value hierarchy Carrying value Fair value Instrument Rm Rm Valuation method Significant inputs Listed long-term debt Level 1 45 829 49 001 Fair value Quoted market price for the same or similar instruments Derivative financial assets and liabilities Level 2 (537) (537) Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate Foreign exchange rates, market commodity prices, US$ swap curve, as appropriate Derivative financial assets and liabilities¹ Level 3 (674) (674) Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate US PPI and US labour index forecast, US dollar and Rand treasury curves, Rand zero swap discount rate 1 Relates to the embedded derivative contained in the Oxygen Train 17 agreement with Air Liquide, IFRS 16 adoption impact of R624 million and R50 million fair value adjustment at 31 December 2019. For all other financial instruments, fair value approximates carrying value. |
Basis of preparation (Policies)
Basis of preparation (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Accounting policies followed in interim financial statements | The accounting policies applied in the preparation of these condensed consolidated interim financial statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial statements for the year ended 30 June 2019, except for the adoption of IFRS 16 ’Leases’, and the Amendments to IFRS 9 'Financial Instruments', IAS 39 'Financial Instruments: Recognition and Measurement' and IFRS 7 'Financial Instruments: Disclosure', and IFRIC 23 'Uncertainty Over Income Tax Treatments' with effect from 1 July 2019. |
Segment report (Tables)
Segment report (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Segment report | |
Schedule of segment information | Segment report for the period ended Turnover Earnings before interest and tax (EBIT) Full year Half year Half year Half year Half year Full year 30 Jun 19 31 Dec 18 31 Dec 19 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Segment analysis Rm Rm Rm 26 060 12 584 12 983 Operating Business Units 2 397 3 425 3 812 20 876 9 906 10 348 Mining 1 374 2 661 4 701 5 184 2 678 2 635 Exploration and Production International 1 023 764 (889) 200 912 101 403 98 781 Strategic Business Units 6 549 16 240 8 095 83 803 43 623 41 206 Energy 6 743 9 565 16 566 48 813 23 011 24 642 Base Chemicals (1 488) 3 076 (1 431) 68 296 34 769 32 933 Performance Chemicals 1 294 3 599 (7 040) 78 26 – Group Functions 907 1 126 (2 210) 227 050 114 013 111 764 Group performance 9 853 20 791 9 697 (23 474) (11 069) (12 594) Intersegmental turnover 203 576 102 944 99 170 External turnover |
Schedule of revenue by major product line | Revenue by major product line Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Base Chemicals 24 183 22 668 48 113 Polymers 13 974 12 346 25 864 Solvents 5 965 6 441 13 178 Fertilisers and explosives 2 240 2 333 4 718 Other base chemicals 2 004 1 548 4 353 Performance Chemicals 32 452 34 349 67 228 Organics 24 790 26 193 51 405 Waxes 3 927 4 387 8 474 Advanced materials 3 735 3 769 7 349 Upstream, Energy and Other Coal 906 1 826 3 222 Liquid fuels and crude oil 36 884 39 633 75 819 Gas (methane rich and natural gas) and condensate 3 134 2 991 5 986 Other (Technology, refinery services) 1 148 991 2 308 Revenue from contracts with customers 98 707 102 458 202 676 Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage) 463 486 900 Total external turnover 99 170 102 944 203 576 |
Salient features (Tables)
Salient features (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Salient features | |
Summary of other financial information | Salient features for the period ended Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Other financial information Total debt (including bank overdraft) Rm 155 610 131 578 138 636 interest-bearing Rm 155 546 130 800 137 691 non-interest-bearing Rm 64 778 945 Finance expense capitalised Rm 1 974 3 440 6 942 Capital commitments (subsidiaries and joint operations)¹ Rm 49 394 71 248 60 095 authorised and contracted Rm 217 047 187 515 212 848 authorised, not yet contracted Rm 37 827 53 163 43 097 less expenditure to date Rm (205 480) (169 430) (195 850) Capital commitments (equity accounted investments) Rm 1 957 1 018 1 283 authorised and contracted Rm 641 618 715 authorised, not yet contracted Rm 1 912 620 1 100 less expenditure to date Rm (596) (220) (532) Effective tax rate² % 40,7 24,1 34,2 Number of employees³ number 31 363 31 430 31 429 1 During FY19 a misstatement was identified in the calculation of the LCCP capital cost estimate that was included in the capital commitment disclosure as at 31 December 2018 and 30 June 2018. The misstatement related to the inaccurate estimation of the cost still to be incurred on the project. Accordingly, the capital commitments disclosure as at 31 December 2018 that were originally presented as R58 640 million has been revised by R12 608 million (US$878 million) to R71 248 million. Management concluded that the revision is not material to interim financial results. 2 Our effective corporate tax rate increased from 24,1% to 40,7%. The effective corporate tax rate is 12,7% higher than the South African corporate income tax rate of 28%, mainly due to non-deductible finance costs as a result of increased funding required for the LCCP and the increase in US tax losses at a lower US corporate income tax rate. The positive benefit of the lower US corporate income tax rate will dilute our effective corporate tax rate as soon as the LCCP is generating taxable profits. 3 The total number of employees includes permanent and non-permanent employees and the group’s share of employees within joint operations, but excludes contractors and equity accounted investments’ employees. |
Summary of reconciliation of headline earnings | Half year Half year Full year 31 Dec 19 31 Dec 18 30 Jun 19 Rm Rm Rm Reconciliation of headline earnings Earnings attributable to owners of Sasol Limited 4 053 14 740 4 298 Effect of remeasurement items for subsidiaries and joint operations (169) (599) 18 645 Impairment of property, plant and equipment 464 2 14 161 Impairment of assets under construction – – 4 272 Impairment of goodwill and other intangible assets – – 18 Impairment of other assets 3 – – Reversal of impairment – (957) (949) Profit on disposal of business¹ (983) – (267) Profit on disposal of non-current assets (61) (27) (32) Scrapping of non-current assets 426 376 1 408 Write-off of unsuccessful exploration wells (18) 7 34 Tax effects and non-controlling interests (214) 168 (4 017) Effect of remeasurement items for equity accounted investments – 15 15 Headline earnings 3 670 14 324 18 941 Headline earnings adjustments by segment Mining 106 7 45 Exploration and Production International (18) 7 1 976 Energy (27) 122 247 Base Chemicals (352) (820) 3 190 Performance Chemicals 118 85 13 182 Group Functions 4 – 5 Remeasurement items (169) (599) 18 645 Headline earnings per share² Rand 5,94 23,25 30,72 Diluted headline earnings per share Rand 5,91 23,08 30,54 1 Mainly relates to R461 million profit on the disposal of our investment in Sasol Huntsman GmbH & co KG and the corresponding R475 million release of foreign currency translation reserve. 2 Headline earnings per share refers to disclosure made in terms of the JSE Limited Listing Requirements. The reader is referred to the definitions contained in the 2019 Sasol Limited financial statements. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Basis of preparation | |
Schedule of impact of adoption of IFRS 16 | 30 June IFRS 16 1 July 2019 Impact 2019 Rm Rm Rm Statement of financial position Assets Property, plant and equipment 233 549 (7 417) 226 132 Assets under construction 127 764 (71) 127 693 Right of use assets – 16 045 16 045 Goodwill and other intangible assets 3 357 – 3 357 Equity accounted investments 9 866 – 9 866 Post-retirement benefit assets 1 274 – 1 274 Deferred tax assets 8 563 – 8 563 Other long-term assets 7 580 (191) 7 389 Non-current assets 391 953 8 366 400 319 Assets in disposal groups held for sale 2 554 – 2 554 Inventories 29 646 – 29 646 Trade and other receivables 29 308 (13) 29 295 Short-term financial assets 630 – 630 Cash and cash equivalents 15 877 – 15 877 Current assets 78 015 (13) 78 002 Total assets 469 968 8 353 478 321 Equity and liabilities Shareholders’ equity 219 910 (290) 219 620 Non-controlling interests 5 885 – 5 885 Total equity 225 795 (290) 225 505 Long-term debt 127 350 (1 005) 126 345 Lease liabilities 7 445 7 933 15 378 Long-term provisions 17 622 – 17 622 Post-retirement benefit obligations 12 708 – 12 708 Long-term deferred income 924 (152) 772 Long-term financial liabilities 1 440 624 2 064 Deferred tax liabilities 27 586 (111) 27 475 Non-current liabilities 195 075 7 289 202 364 Liabilities in disposal groups held for sale 488 – 488 Short-term debt 3 783 1 383 5 166 Short-term financial liabilities 765 – 765 Other current liabilities 44 004 (29) 43 975 Bank overdraft 58 – 58 Current liabilities 49 098 1 354 50 452 Total equity and liabilities 469 968 8 353 478 321 |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Financial instruments | |
Schedule of financial instruments classified into the hierarchical levels in line with IFRS 13 | IFRS 13 fair value hierarchy Carrying value Fair value Instrument Rm Rm Valuation method Significant inputs Listed long-term debt Level 1 45 829 49 001 Fair value Quoted market price for the same or similar instruments Derivative financial assets and liabilities Level 2 (537) (537) Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate Foreign exchange rates, market commodity prices, US$ swap curve, as appropriate Derivative financial assets and liabilities¹ Level 3 (674) (674) Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate US PPI and US labour index forecast, US dollar and Rand treasury curves, Rand zero swap discount rate 1 Relates to the embedded derivative contained in the Oxygen Train 17 agreement with Air Liquide, IFRS 16 adoption impact of R624 million and R50 million fair value adjustment at 31 December 2019. For all other financial instruments, fair value approximates carrying value. |
Segment report - Segment inform
Segment report - Segment information (Details) - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income Statement | |||
Turnover | R 99,170 | R 102,944 | R 203,576 |
Earnings before interest and tax (EBIT) | 9,853 | 20,791 | 9,697 |
Operating Business Units | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 2,397 | 3,425 | 3,812 |
Mining | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 1,374 | 2,661 | 4,701 |
Exploration and Production International | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 1,023 | 764 | (889) |
Strategic Business Units | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 6,549 | 16,240 | 8,095 |
Energy | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 6,743 | 9,565 | 16,566 |
Base Chemicals | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | (1,488) | 3,076 | (1,431) |
Performance Chemicals | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 1,294 | 3,599 | (7,040) |
Group Functions | |||
Income Statement | |||
Earnings before interest and tax (EBIT) | 907 | 1,126 | (2,210) |
Group performance | |||
Income Statement | |||
Turnover | 111,764 | 114,013 | 227,050 |
Group performance | Operating Business Units | |||
Income Statement | |||
Turnover | 12,983 | 12,584 | 26,060 |
Group performance | Mining | |||
Income Statement | |||
Turnover | 10,348 | 9,906 | 20,876 |
Group performance | Exploration and Production International | |||
Income Statement | |||
Turnover | 2,635 | 2,678 | 5,184 |
Group performance | Strategic Business Units | |||
Income Statement | |||
Turnover | 98,781 | 101,403 | 200,912 |
Group performance | Energy | |||
Income Statement | |||
Turnover | 41,206 | 43,623 | 83,803 |
Group performance | Base Chemicals | |||
Income Statement | |||
Turnover | 24,642 | 23,011 | 48,813 |
Group performance | Performance Chemicals | |||
Income Statement | |||
Turnover | 32,933 | 34,769 | 68,296 |
Group performance | Group Functions | |||
Income Statement | |||
Turnover | 26 | 78 | |
Intersegmental turnover | |||
Income Statement | |||
Turnover | R (12,594) | R (11,069) | R (23,474) |
Segment report - Revenue by maj
Segment report - Revenue by major product line (Details) - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income Statement | |||
Revenue from contracts with customers | R 98,707 | R 102,458 | R 202,676 |
Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage) | 463 | 486 | 900 |
Total external turnover | 99,170 | 102,944 | 203,576 |
Base Chemicals | |||
Income Statement | |||
Revenue from contracts with customers | 24,183 | 22,668 | 48,113 |
Polymers | |||
Income Statement | |||
Revenue from contracts with customers | 13,974 | 12,346 | 25,864 |
Solvents | |||
Income Statement | |||
Revenue from contracts with customers | 5,965 | 6,441 | 13,178 |
Fertilisers and explosives | |||
Income Statement | |||
Revenue from contracts with customers | 2,240 | 2,333 | 4,718 |
Other base chemicals | |||
Income Statement | |||
Revenue from contracts with customers | 2,004 | 1,548 | 4,353 |
Performance Chemicals | |||
Income Statement | |||
Revenue from contracts with customers | 32,452 | 34,349 | 67,228 |
Organics | |||
Income Statement | |||
Revenue from contracts with customers | 24,790 | 26,193 | 51,405 |
Waxes | |||
Income Statement | |||
Revenue from contracts with customers | 3,927 | 4,387 | 8,474 |
Advanced materials | |||
Income Statement | |||
Revenue from contracts with customers | 3,735 | 3,769 | 7,349 |
Coal | |||
Income Statement | |||
Revenue from contracts with customers | 906 | 1,826 | 3,222 |
Liquid fuels and crude oil | |||
Income Statement | |||
Revenue from contracts with customers | 36,884 | 39,633 | 75,819 |
Gas (methane rich and natural gas) and condensate | |||
Income Statement | |||
Revenue from contracts with customers | 3,134 | 2,991 | 5,986 |
Other (Technology, refinery services) | |||
Income Statement | |||
Revenue from contracts with customers | R 1,148 | R 991 | R 2,308 |
Segment report - Mining Segment
Segment report - Mining Segment (Details) R in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020MT | Dec. 31, 2019ZAR (R)itemR / T | Dec. 31, 2018ZAR (R) | Jun. 30, 2020R / T | Jun. 30, 2019ZAR (R) | |
Disclosure of operating segments | |||||
EBIT | R | R 9,853 | R 20,791 | R 9,697 | ||
Mining | |||||
Disclosure of operating segments | |||||
Increase (decrease) in productivity (as a percent) | (7.00%) | ||||
Number of fatalities at Thubelisha Colliery | item | 2 | ||||
Increase (decrease) in EBIT (as a percent) | (48.00%) | ||||
EBIT | R | R 1,374 | R 2,661 | R 4,701 | ||
Increase (decrease) in external sales volume (as a percent) | (19.00%) | ||||
Increase (decrease) in normalised unit cost (as a percent) | 15.00% | ||||
Normalised unit cost | 343 | ||||
Mining | Forecast | Minimum | |||||
Disclosure of operating segments | |||||
External coal purchases | MT | 1.3 | ||||
Normalised unit cost | 330 | ||||
Mining | Forecast | Maximum | |||||
Disclosure of operating segments | |||||
External coal purchases | MT | 1.6 | ||||
Normalised unit cost | 350 |
Segment report - Exploration an
Segment report - Exploration and Production International Segment (Details) R in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019ZAR (R) | Dec. 31, 2018ZAR (R) | Jun. 30, 2020Bcf | Jun. 30, 2019ZAR (R) | |
Disclosure of operating segments | ||||
EBIT | R 9,853 | R 20,791 | R 9,697 | |
Exploration and Production International | ||||
Disclosure of operating segments | ||||
Increase (decrease) in EBIT (as a percent) | 34.00% | |||
EBIT | R 1,023 | 764 | R (889) | |
Exploration and Production International | Mozambique | ||||
Disclosure of operating segments | ||||
Increase (decrease) in EBIT (as a percent) | 12.00% | |||
EBIT | R 1,400 | |||
Exploration and Production International | Mozambique | Forecast | Minimum | ||||
Disclosure of operating segments | ||||
Gas production volumes | Bcf | 114 | |||
Exploration and Production International | Mozambique | Forecast | Maximum | ||||
Disclosure of operating segments | ||||
Gas production volumes | Bcf | 118 | |||
Exploration and Production International | Gabon | ||||
Disclosure of operating segments | ||||
Increase (decrease) in EBIT (as a percent) | (66.00%) | |||
EBIT | R 113 | |||
Exploration and Production International | Canada | ||||
Disclosure of operating segments | ||||
EBIT | R (142) | R (366) |
Segment report - Energy Segment
Segment report - Energy Segment (Details) R in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019ZAR (R)item | Dec. 31, 2018ZAR (R) | Jun. 30, 2020item | Jun. 30, 2019ZAR (R) | |
Disclosure of operating segments | ||||
EBIT | R 9,853 | R 20,791 | R 9,697 | |
Energy | ||||
Disclosure of operating segments | ||||
Increase (decrease) in EBIT (as a percent) | (30.00%) | |||
EBIT | R 6,743 | R 9,565 | R 16,566 | |
Increase (decrease) in cash fixed cost (as a percent) | 9.00% | |||
Number of new retail convenience centres opened | item | 3 | |||
Energy | Forecast | ||||
Disclosure of operating segments | ||||
Number of new retail convenience centres targeted | item | 10 | |||
Energy | ORYX GTL | ||||
Disclosure of operating segments | ||||
Increase (decrease) in liquid fuels production volumes (as a percent) | (1.00%) | |||
EBIT | R 701 | |||
Utilization rate (as a percent) | 98.00% | |||
Increase (decrease) in EBIT | R (255) | |||
Energy | ORYX GTL | Forecast | Minimum | ||||
Disclosure of operating segments | ||||
Utilization rate (as a percent) | 55.00% | |||
Energy | ORYX GTL | Forecast | Maximum | ||||
Disclosure of operating segments | ||||
Utilization rate (as a percent) | 60.00% | |||
Energy | Natref | ||||
Disclosure of operating segments | ||||
Increase (decrease) in liquid fuels production volumes (as a percent) | (8.00%) | |||
Energy | Natural gas | ||||
Disclosure of operating segments | ||||
Increase (decrease) in external sales volume (as a percent) | (2.00%) | |||
Energy | Secunda Synfuels Operations | ||||
Disclosure of operating segments | ||||
Increase (decrease) in liquid fuels feedstock production volumes (as a percent) | 5.00% |
Segment report - Performance ch
Segment report - Performance chemicals Segment (Details) R in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019kT | Sep. 30, 2019kT | Jun. 30, 2019kT | Dec. 31, 2019ZAR (R)kT | Dec. 31, 2018ZAR (R) | Jun. 30, 2019ZAR (R) | |
Disclosure of operating segments | ||||||
EBIT | R 9,853 | R 20,791 | R 9,697 | |||
Lake Charles Chemicals Project (LCCP) | ||||||
Disclosure of operating segments | ||||||
EBIT | R (2,800) | |||||
Performance Chemicals | ||||||
Disclosure of operating segments | ||||||
Increase (decrease) in external sales volume (as a percent) | 6.00% | |||||
Increase (decrease) in EBIT (as a percent) | (64.00%) | |||||
EBIT | R 1,294 | R 3,599 | R (7,040) | |||
Performance Chemicals | Lake Charles Chemicals Project (LCCP) | ||||||
Disclosure of operating segments | ||||||
EBIT | R 1.6 | |||||
Performance Chemicals | EO/EG value chain | ||||||
Disclosure of operating segments | ||||||
Realised sales volume | kT | 74 | 70 | 37 | 144 | ||
Performance Chemicals | Projects excluding LCCP project | ||||||
Disclosure of operating segments | ||||||
Increase (decrease) in external sales volume (as a percent) | (5.00%) | |||||
Performance Chemicals | Organics | ||||||
Disclosure of operating segments | ||||||
Increase (decrease) in external sales volume (as a percent) | (3.00%) |
Segment report - Base chemicals
Segment report - Base chemicals Segment (Details) R in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019ZAR (R)kT | Dec. 31, 2018ZAR (R)kT | Jun. 30, 2019ZAR (R) | |
Disclosure of operating segments | |||
EBIT | R 9,853 | R 20,791 | R 9,697 |
Gains (losses) on disposals of investments | 983 | 267 | |
Sasol Huntsman GmbH & co KG | |||
Disclosure of operating segments | |||
Gains (losses) on disposals of investments | R 936 | ||
Disposal of equity interest (as a percent) | 50.00% | ||
Lake Charles Chemicals Project (LCCP) | |||
Disclosure of operating segments | |||
EBIT | R (2,800) | ||
Base Chemicals | |||
Disclosure of operating segments | |||
Increase (decrease) in foundation business sales volumes (excluding Polymers US products) (as a percent) | 1.00% | ||
Increase (decrease) in external sales volume (as a percent) | 21.00% | ||
Increase (decrease) in average sales basket price | (15.00%) | ||
EBIT | R (1,488) | R 3,076 | R (1,431) |
Base Chemicals | Blends and Mining Chemicals and Methyl Isobutyl Ketone (MIBK) | |||
Disclosure of operating segments | |||
Impairment charges | R 464 | ||
Base Chemicals | Polymer US | |||
Disclosure of operating segments | |||
Increase (decrease) in average sales basket price | (40.00%) | ||
Realised sales volume | kT | 469 | 116 | |
Base Chemicals | Sasol Huntsman GmbH & co KG | |||
Disclosure of operating segments | |||
Gains (losses) on disposals of investments | R 936 | ||
Disposal of equity interest (as a percent) | 50.00% | ||
Base Chemicals | Lake Charles Chemicals Project (LCCP) | |||
Disclosure of operating segments | |||
EBIT | R (1,200) |
Salient features - Other financ
Salient features - Other financial information (Details) R in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019ZAR (R)employee | Dec. 31, 2018ZAR (R) | Jun. 30, 2019ZAR (R)employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2018ZAR (R)employee | |
Other financial information | |||||
Total debt (including bank overdraft) | R 155,610 | R 138,636 | R 131,578 | ||
interest-bearing debt | 155,546 | 137,691 | 130,800 | ||
non-interest-bearing debt | 64 | 945 | R 778 | ||
Finance expense capitalised | R 1,974 | R 3,440 | R 6,942 | ||
Effective tax rate | 40.70% | 24.10% | 34.20% | ||
Number of employees | employee | 31,363 | 31,429 | 31,430 | 31,430 | |
Difference between effective corporate tax rate and South African corporate income tax rate | 12.70% | ||||
South Africa | |||||
Other financial information | |||||
Applicable tax rate | 28.00% | ||||
Subsidiaries and joint operations | |||||
Other financial information | |||||
Total capital commitments | R 49,394 | R 60,095 | R 71,248 | ||
authorised and contracted | 217,047 | 212,848 | 187,515 | ||
authorised, not yet contracted | 37,827 | 43,097 | 53,163 | ||
less expenditure to date | (205,480) | (195,850) | (169,430) | ||
Subsidiaries and joint operations | Originally presented | |||||
Other financial information | |||||
Total capital commitments | 58,640 | ||||
Subsidiaries and joint operations | Increase due to review of forecast | |||||
Other financial information | |||||
Total capital commitments | $ 878 | 12,608 | |||
Equity accounted investments | |||||
Other financial information | |||||
Total capital commitments | 1,957 | 1,283 | 1,018 | ||
authorised and contracted | 641 | 715 | 618 | ||
authorised, not yet contracted | 1,912 | 1,100 | 620 | ||
less expenditure to date | R (596) | R (532) | R (220) |
Salient features - Reconciliati
Salient features - Reconciliation of headline earnings (Details) - ZAR (R) R / shares in Units, R in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Salient features | |||
Earnings attributable to owners of Sasol Limited | R 4,053 | R 14,740 | R 4,298 |
Effect of remeasurement items for subsidiaries and joint operations | (169) | (599) | 18,645 |
Reversal of impairment | (957) | (949) | |
Profit on disposal of business | (983) | (267) | |
Profit on disposal of non-current assets | (61) | (27) | (32) |
Scrapping of non-current assets | 426 | 376 | 1,408 |
Write-off of unsuccessful exploration wells | (18) | 7 | 34 |
Tax effects and non-controlling interests | (214) | 168 | (4,017) |
Effect of remeasurement items for equity accounted investments | 15 | 15 | |
Headline earnings | R 3,670 | R 14,324 | R 18,941 |
Headline earnings per share (HEPS) | |||
Headline earnings per share (in rand per share) | R 5.94 | R 23.25 | R 30.72 |
Diluted headline earnings per share (in rand per share) | R 5.91 | R 23.08 | R 30.54 |
Sasol Huntsman GmbH & co KG | |||
Salient features | |||
Profit on disposal of business | R (936) | ||
Headline earnings per share (HEPS) | |||
Profit on disposal of investments | 461 | ||
Release of foreign currency translation reserve | 475 | ||
Mining | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | 106 | R 7 | R 45 |
Exploration and Production International | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | (18) | 7 | 1,976 |
Energy | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | (27) | 122 | 247 |
Base Chemicals | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | (352) | (820) | 3,190 |
Base Chemicals | Sasol Huntsman GmbH & co KG | |||
Salient features | |||
Profit on disposal of business | (936) | ||
Performance Chemicals | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | 118 | 85 | 13,182 |
Group Functions | |||
Salient features | |||
Effect of remeasurement items for subsidiaries and joint operations | 4 | 5 | |
Property, plant and equipment | |||
Salient features | |||
Impairment loss | 464 | R 2 | 14,161 |
Assets under construction | |||
Salient features | |||
Impairment loss | 4,272 | ||
Goodwill and other intangible assets | |||
Salient features | |||
Impairment loss | R 18 | ||
Other assets | |||
Salient features | |||
Impairment loss | R 3 |
Basis of preparation - Leases (
Basis of preparation - Leases (Details) | Jun. 30, 2019 |
South Africa | Minimum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 8.20% |
South Africa | Maximum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 11.50% |
Eurasia | Minimum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 0.90% |
Eurasia | Maximum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 8.10% |
United States of America | Minimum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 3.70% |
United States of America | Maximum | |
Disclosure of initial application of standards or interpretations | |
Incremental borrowing rate | 5.60% |
Basis of preparation - Impact o
Basis of preparation - Impact of the adoption of IFRS 16 (Details) - ZAR (R) R in Millions | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Assets | |||||
Property, plant and equipment | [1] | R 282,349 | R 233,549 | R 181,552 | |
Assets under construction | [2] | 83,474 | 127,764 | 184,007 | |
Right of use assets | [3] | 16,475 | |||
Goodwill and other intangible assets | 3,299 | 3,357 | 2,792 | ||
Equity accounted investments | 10,276 | 9,866 | 10,961 | ||
Post-retirement benefit assets | 1,151 | 1,274 | 1,292 | ||
Deferred tax assets | [4] | 9,686 | 8,563 | 4,302 | |
Other long-term assets | 7,181 | 7,580 | 7,223 | ||
Non-current assets | 413,891 | 391,953 | 392,129 | ||
Assets in disposal groups held for sale | 1,302 | 2,554 | 136 | ||
Inventories | 30,475 | 29,646 | 31,203 | ||
Trade and other receivables | 25,724 | 29,308 | 30,515 | ||
Short-term financial assets | [5] | 2,279 | 630 | 2,602 | |
Cash and cash equivalents | 12,674 | 15,877 | 15,876 | ||
Current assets | 72,454 | 78,015 | 80,332 | ||
Total assets | 486,345 | 469,968 | 472,461 | ||
Equity and liabilities | |||||
Shareholders' equity | 222,645 | 219,910 | 235,997 | ||
Non-controlling interests | 6,001 | 5,885 | 6,241 | ||
Total equity | 228,646 | 225,795 | 242,238 | R 228,608 | |
Long-term debt | 121,287 | 127,350 | 114,013 | ||
Lease liabilities | [3] | 15,939 | 7,445 | 7,216 | |
Long-term provisions | 17,974 | 17,622 | 15,621 | ||
Post-retirement benefit obligations | 12,850 | 12,708 | 12,141 | ||
Long-term deferred income | 560 | 924 | 850 | ||
Long-term financial liabilities | [6] | 2,142 | 1,440 | 433 | |
Deferred tax liabilities | [4] | 28,791 | 27,586 | 28,773 | |
Non-current liabilities | 199,543 | 195,075 | 179,047 | ||
Liabilities in disposal groups held for sale | 411 | 488 | 44 | ||
Short-term debt | [7] | 18,380 | 3,783 | 10,243 | |
Short-term financial liabilities | 1,348 | 765 | 1,264 | ||
Other current liabilities | [8] | 38,013 | 44,004 | 39,519 | |
Bank overdraft | 4 | 58 | 106 | ||
Current liabilities | 58,156 | 49,098 | 51,176 | ||
Total equity and liabilities | R 486,345 | 469,968 | R 472,461 | ||
IFRS 16 Impact | |||||
Assets | |||||
Property, plant and equipment | (7,417) | ||||
Assets under construction | (71) | ||||
Right of use assets | 16,045 | ||||
Other long-term assets | (191) | ||||
Non-current assets | 8,366 | ||||
Trade and other receivables | (13) | ||||
Current assets | (13) | ||||
Total assets | 8,353 | ||||
Equity and liabilities | |||||
Shareholders' equity | (290) | ||||
Total equity | (290) | ||||
Long-term debt | (1,005) | ||||
Lease liabilities | 7,933 | ||||
Long-term deferred income | (152) | ||||
Long-term financial liabilities | 624 | ||||
Deferred tax liabilities | (111) | ||||
Non-current liabilities | 7,289 | ||||
Short-term debt | 1,383 | ||||
Other current liabilities | (29) | ||||
Current liabilities | 1,354 | ||||
Total equity and liabilities | 8,353 | ||||
After application of IFRS 16 | |||||
Assets | |||||
Property, plant and equipment | 226,132 | ||||
Assets under construction | 127,693 | ||||
Right of use assets | 16,045 | ||||
Goodwill and other intangible assets | 3,357 | ||||
Equity accounted investments | 9,866 | ||||
Post-retirement benefit assets | 1,274 | ||||
Deferred tax assets | 8,563 | ||||
Other long-term assets | 7,389 | ||||
Non-current assets | 400,319 | ||||
Assets in disposal groups held for sale | 2,554 | ||||
Inventories | 29,646 | ||||
Trade and other receivables | 29,295 | ||||
Short-term financial assets | 630 | ||||
Cash and cash equivalents | 15,877 | ||||
Current assets | 78,002 | ||||
Total assets | 478,321 | ||||
Equity and liabilities | |||||
Shareholders' equity | 219,620 | ||||
Non-controlling interests | 5,885 | ||||
Total equity | 225,505 | ||||
Long-term debt | 126,345 | ||||
Lease liabilities | 15,378 | ||||
Long-term provisions | 17,622 | ||||
Post-retirement benefit obligations | 12,708 | ||||
Long-term deferred income | 772 | ||||
Long-term financial liabilities | 2,064 | ||||
Deferred tax liabilities | 27,475 | ||||
Non-current liabilities | 202,364 | ||||
Liabilities in disposal groups held for sale | 488 | ||||
Short-term debt | 5,166 | ||||
Short-term financial liabilities | 765 | ||||
Other current liabilities | 43,975 | ||||
Bank overdraft | 58 | ||||
Current liabilities | 50,452 | ||||
Total equity and liabilities | R 478,321 | ||||
[1] | Includes assets under construction capitalised of R69 billion and depreciation for the period of R10 billion | ||||
[2] | Actual capital expenditure, including accruals, amounted to R21 billion. This includes R10 billion (US$0.7 billion) relating to the LCCP. R69 billion was capitalised to property, plant and equipment, including R55 billion relating to the LCCP | ||||
[3] | Refer to page 15 for the impact of the adoption of IFRS 16 ‘Leases’ | ||||
[4] | Deferred tax assets and liabilities are determined based on the tax status and rates of the underlying entities. The increase in deferred tax assets relate to our US Operations. | ||||
[5] | Fair value period end adjustments, mainly the zero-cost foreign exchange collars | ||||
[6] | Includes R674 million relating to an embedded derivative contained in the Oxygen Train 17 agreement with Air Liquide, which was recognised as a Finance Lease under IAS 17. With the adoption of IFRS 16 the agreement is recognised as a service agreement | ||||
[7] | Short-term debt includes R14 billion relating to the US$1 billion syndicated loan facility raised in November 2019. | ||||
[8] | The movement mainly relates to the R3.9 billion decrease in capital project related payables as the LCCP nears completion |
Litigation and contingency (Det
Litigation and contingency (Details) R in Millions | Feb. 05, 2020item | Dec. 31, 2019ZAR (R) |
Tax contingent liability | ||
Contingent liabilities | ||
Estimated financial effect of contingent liabilities | R | R 2,460 | |
Class action in relation to LCCP | ||
Contingent liabilities | ||
Number of current and former executive directors against whom class action filed | item | 5 |
Significant events and transa_2
Significant events and transactions since 30 June 2019 (Details) - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Significant events and transactions | ||
Gain from disposal of equity interest | R 983 | R 267 |
Sasol Huntsman GmbH & co KG | ||
Significant events and transactions | ||
Gain from disposal of equity interest | R 936 | |
Disposal of equity interest (as a percent) | 50.00% |
Financial instruments (Details)
Financial instruments (Details) - ZAR (R) R in Millions | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Air Liquide | ||
Financial instruments | ||
Loss on fair value adjustment | R 50 | |
IFRS 16 Impact | Air Liquide | ||
Financial instruments | ||
Derivative financial assets and liabilities - carrying value | R (624) | |
Derivatives | Level 2 | ||
Financial instruments | ||
Derivative financial assets and liabilities - carrying value | (537) | |
Derivative financial assets and liabilities - fair value | (537) | |
Derivatives | Level 3 | ||
Financial instruments | ||
Derivative financial assets and liabilities - carrying value | (674) | |
Derivative financial assets and liabilities - fair value | (674) | |
Listed long-term debt | Level 1 | ||
Financial instruments | ||
Financial liabilities - carrying value | 45,829 | |
Financial liabilities - fair value | R 49,001 |