|
Trading Statement for the year ended 30 June 2025
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(Sasol, the Company, Equity issuer)
Sasol Financing Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/019838/06)
Company code: SFIE
LEI: 378900A5BC68CC18C276
(Sasol Financing, Debt issuer)
TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2025
We refer to the SENS announcement of 22 July 2025, on the release of the quarterly
production and sales metrics, where Sasol indicated that earnings per share (EPS) are
expected to increase by more than 20%.
In terms of paragraph 3.4(b)(i) of the Listing Requirement of the JSE Limited,
stakeholders are advised that, for the year ended 30 June 2025:
- Earnings per share (EPS) is expected to increase by more than 100% compared to
the prior year, to between R7,00 and R12,00 (prior year loss per share of R69,94);
and
- Headline earnings per share (HEPS) is expected to increase by between 85% and
100% compared to the prior year, to be between R33,60 and R36,30 (prior year
HEPS of R18,19); and
Adjusted earnings before interest, tax, depreciation and amortisation (adjusted
EBITDA*) is expected to decrease by between 10% and 17% compared to the prior
year, to between R50 billion and R54 billion (prior year adjusted EBITDA of
R60 billion)
The increase in earnings for the year was supported by management actions and driven
by:
- An increase in the average chemicals basket prices and strict cost control;
- Significantly lower impairments of R20,7 billion (before tax) (summary below),
compared to R74,9 billion in the prior year;
- The derecognition of deferred tax asset in the prior year of R15,3 billion, mainly
relating to an assessed loss carry forward on our Chemicals America operations
which is not anticipated to be utilised;
- Transnet SOC Limited net cash settlement of R4,3 billion (before tax); and
- Reduction in asset rehabilitation provision of R2,9 billion in the current year
compared to a reduction of R0,8 billion in the prior year;
The increase in earnings was partially offset by:
- A 15% decline in the average Rand per barrel of Brent crude oil price as well as a
significant decline in refining margins and fuel price differentials;
- A 3% decrease in sales volumes associated with lower production and/or lower
market demand as detailed in the Production and Sales Metrics published on 22 July
2025, which can be found on our website: https://www.sasol.com/index.php/investor-
centre/financial-results; and
- Lower unrealised gains of R2 billion on the translation of monetary assets and
liabilities, and valuation of financial instruments and derivative contracts compared to
unrealised gains of R4,7 billion in the prior year.
The following is a summary of significant impairments and reversal of impairment in the
current year:
- The Secunda and Sasolburg liquid fuels refinery cash generating units (CGU)
remain fully impaired. The recoverable amount improved through management
actions but was negatively impacted by lower forecast macro-economic
assumptions. Additional management initiatives need to be further progressed
before the benefits can be incorporated in the impairment calculations. Costs
capitalised during the current year of R13,1 billion have been impaired;
- Impairment of the Production Sharing Agreement (PSA) and PT5-C exploration
assets in Mozambique of R4,4 billion, driven by an increase in the weighted average
cost of capital (WACC) attributable to independently calculated higher country risk
premium. The PSA was also impacted by a marginal reduction in estimated gas
volumes, as well as lower sales prices of oil related products;
- Impairment of Italy Care Chemicals CGU of R3,2 billion, driven by lower for longer
forecast sales margins. The CGU is fully impaired; and
- Reversal of impairment of the China Care Chemicals CGU of R1 billion following a
sustained improvement in the business results.
The financial information underpinning this trading statement has not been reviewed
and reported on by the Company's external auditors.
Sasol will present its 2025 financial results on Monday, 25 August 2025 at 09h00 (SA
time). This will be followed by a market call, hosted by President and Chief Executive
Officer, Simon Baloyi, and Chief Financial Officer, Walt Bruns, to address questions.
Please connect to the call via the webcast link:
https://www.corpcam.com/Sasol25082025
or via teleconference call link:
https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumber=3
605690&linkSecurityString=89ae33f44
* 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.
Adjusted EBITDA is not a defined term under International Financial Reporting
Standards and may not be comparable with similarly titled measures reported by other
companies. The aforementioned adjustments are the responsibility of the directors of
Sasol. The adjustments have been prepared for illustrative purposes only and due to
their nature, may not fairly present Sasolīs financial position, changes in equity, results
of operations or cash flows.
12 August 2025
Johannesburg
Sponsor: Merrill Lynch South Africa Proprietary Limited t/a BofA Securities
Debt Sponsor: Absa Corporate and Investment Bank, a division of Absa Bank Limited
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts and
relate to analyses and other information which are based on forecasts of future results
and estimates of amounts not yet determinable. These statements may also relate to
our future prospects, expectations, developments, and business strategies. Examples of
such forward-looking statements include, but are not limited to, the capital cost of our
projects and the timing of project milestones; our ability to obtain financing to meet the
funding requirements of our capital investment programme, as well as to fund our
ongoing business activities and to pay dividends; statements regarding our future
results of operations and financial condition, and regarding future economic
performance including cost containment, cash conservation programmes and business
optimisation initiatives; recent and proposed accounting pronouncements and their
impact on our future results of operations and financial condition; our business strategy,
performance outlook, plans, objectives or goals; statements regarding future
competition, volume growth and changes in market share in the industries and markets
for our products; our existing or anticipated investments, acquisitions of new businesses
or the disposal of existing businesses, including estimates or projection of internal rates
of return and future profitability; our estimated oil, gas and coal reserves; the probable
future outcome of litigation, legislative, regulatory and fiscal developments, including
statements regarding our ability to comply with future laws and regulations; future
fluctuations in refining margins and crude oil, natural gas and petroleum and chemical
product prices; the demand, pricing and cyclicality of oil, gas and petrochemical product
prices; changes in the fuel and gas pricing mechanisms in South Africa and their effects
on prices, our operating results and profitability; statements regarding future fluctuations
in exchange and interest rates and changes in credit ratings; total shareholder return;
our current or future products and anticipated customer demand for these products;
assumptions relating to macroeconomics; climate change impacts and our climate
change strategies, our development of sustainability within our businesses, our energy
efficiency improvement, carbon and greenhouse gas emission reduction targets, our net
zero carbon emissions ambition and future low-carbon initiatives, including relating to
green hydrogen and sustainable aviation fuel; our estimated carbon tax liability; cyber
security; and statements of assumptions underlying such statements. Words such as
"believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may",
"endeavour", "target", "forecast" and "project" and similar expressions are intended to
identify forward-looking statements but are not the exclusive means of identifying such
statements. By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and there are risks that the predictions,
forecasts, projections, and other forward-looking statements will not be achieved. If one
or more of these risks materialise, or should underlying assumptions prove incorrect,
our actual results may differ materially from those anticipated. You should understand
that a number of important factors could cause actual results to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in such forward-
looking statements. These factors and others are discussed more fully in our most
recent annual report on Form 20-F filed on 6 September 2024 and in other filings with
the United States Securities and Exchange Commission. The list of factors discussed
therein is not exhaustive; when relying on forward-looking statements to make
investment decisions, you should carefully consider foregoing factors and other
uncertainties and events, and you should not place undue reliance on forward-looking
statements. Forward-looking statements apply only as of the date on which they are
made, and we do not undertake any obligation to update or revise any of them, whether
as a result of new information, future events or otherwise.
Date: 12-08-2025 10:46:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
