Trading Statement and Business Performance Metrics for the six months ended 31 December 2020
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(“Sasol” or “Company”)
TRADING STATEMENT AND BUSINESS PERFORMANCE METRICS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2020
Sasol is expected to deliver a strong set of results for the six months ended 31 December
2020 (2021 financial half year), underpinned by a strong cash cost, working capital and
capital expenditure performance despite the effects of the COVID-19 pandemic, a severe
decline in crude oil prices and softer chemical product prices. In addition, our Lake Charles
production was impacted by hurricanes experienced in the US Gulf Coast, resulting in lost
production of approximately 300kt for the 2021 financial half year.
Shareholders are advised that, for the 2021 financial half year:
- The earnings per share is expected to be between R22,76 and R24,07 compared to the
prior half year earnings per share of R6,56 (representing an increase of more than
- Headline earnings per share (HEPS) is expected to be between R18,59 and R19,78
compared to the prior half year HEPS of R5,94 (representing an increase of more than
- Core HEPS (CHEPS**) is expected to be between R6,94 and R8,79 compared to the
prior half year CHEPS of R9,25.
Sasol´s adjusted earnings before interest, tax, depreciation and amortisation (adjusted
EBITDA*) is expected to decline by between 0% and 10% from R19,8 billion in the prior
year, to between R17,9 billion and R19,8 billion. This decline results from a 23% decrease in
the rand per barrel price of Brent crude oil coupled with lower sales volumes due to softer
demand attributable to COVID-19 lockdowns and the aforementioned hurricanes impacting
our gross margins adversely. This was offset by a strong cost performance, supported by
delivery towards the US$1 billion integrated crisis response plan commitment.
Notable non-cash adjustments for the 2021 financial half year include:
- Unrealised gains of R5,4 billion on the translation of monetary assets and liabilities due
to the 15% strengthening of the closing rand/US dollar exchange rate compared to June
- Unrealised gains of R4,7 billion on the valuation of financial instruments and derivative
- R3,3 billion gain on the realisation of the foreign currency translation reserve (FCTR),
mainly on the divestment of 50% interest in the LCCP Base Chemicals Business.
The financial information on which this trading statement is based has not been reviewed
and reported on by the Company's external auditors.
Sasol will release its 2021 financial half year results on Monday, 22 February 2021. Sasol´s
President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul
Victor, will present the results. The pre-recorded presentation will be available on
22 February 2021 on the following link: presentation link
A conference call will also be hosted via webcast on 22 February 2021 at 15h00 (SA time)
with Fleetwood Grobler and Paul Victor to discuss the results and provide an update of the
business. Please confirm your participation by registering online: webcast link
Production and sales metrics for the 2021 financial half year
Sasol has published its production and sales performance metrics for the 2021 financial half
year, on the Company´s website at <a href="http://www.sasol.com" target="_blank">www.sasol.com</a>, under the Investor Centre section:
<a href="https://www.sasol.com/investor-centre/financial-reporting/business-perfo... target="_blank">https://www.sasol.com/investor-centre/financial-reporting/business-perfo...
* Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation,
share-based payments, remeasurement items, change in discount rates of our rehabilitation
provisions, all unrealised translation gains and losses, and all unrealised gains and losses
on our derivatives and hedging activities.
** Core HEPS is calculated by adjusting headline earnings with non-recurring items,
earnings losses of significant capital projects (exceeding R4 billion) which have reached
beneficial operation and are still ramping up, all translation gains and losses (realised and
unrealised), all gains and losses on our derivatives and hedging activities (realised and
unrealised), and share-based payments on implementation of Broad-Based Black Economic
Empowerment (BBBEE) transactions. Adjustments in relation to the valuation of our
derivatives at period end are to remove volatility from earnings as these instruments are
valued using forward curves and other market factors at the reporting date and could vary
from period to period. We believe core headline earnings are a useful measure of the
group´s sustainable operating performance.
Adjusted EBITDA and Core HEPS are not defined terms under IFRS and may not be
comparable with similarly titled measures reported by other companies. The aforementioned
adjustments are the responsibility of the directors of Sasol. The adjustments have been
prepared for illustrative purposes only and due to their nature, may not fairly present Sasol´s
financial position, changes in equity, results of operations or cash flows.
29 January 2021
Sponsor: Merrill Lynch South Africa Proprietary Limited
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts and relate
to analyses and other information which are based on forecasts of future results and
estimates of amounts not yet determinable. These statements may also relate to our future
prospects, expectations, developments and business strategies. Examples of such forward-
looking statements include, but are not limited to, the impact of the novel coronavirus
(COVID-19) pandemic on Sasol’s business, results of operations, financial condition and
liquidity and statements regarding the effectiveness of any actions taken by Sasol to address
or limit any impact of COVID-19 on its business; statements regarding exchange rate
fluctuations, changing crude oil prices , volume growth, increases in market share, total
shareholder return, executing our growth projects (including LCCP), oil and gas reserves,
cost reductions, our climate change strategy and business performance outlook. Words such
as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”,
“target”, “forecast” and “project” and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying such statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties,
both general and specific, and there are risks that the predictions, forecasts, projections and
other forward-looking statements will not be achieved. If one or more of these risks
materialise, or should underlying assumptions prove incorrect, our actual results may differ
materially from those anticipated. You should understand that a number of important factors
could cause actual results to differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking statements. These factors and
others are discussed more fully in our most recent annual report on Form 20-F filed on
24 August 2020 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 both these
factors and other uncertainties and events. Forward-looking statements apply only as of the
date on which they are made, and we do not undertake any obligation to update or revise
any of them, whether as a result of new information, future events or otherwise.
Date: 29-01-2021 07:05:00
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