Sasol Limited (SSL) 6-K 25 Feb 19 2019 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Dec. 31, 2018
Document and Entity Information
Entity Registrant Name	SASOL LTD
Entity Central Index Key	314,590
Document Type	6-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2

Income Statement

Income Statement - ZAR (R) R in Millions		6 Months Ended		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Income Statement
Turnover		R 102,944	R 88,153	R 181,461
Materials, energy and consumables used		(45,960)	(35,887)	(76,606)
Selling and distribution costs		(3,794)	(3,388)	(7,060)
Maintenance expenditure		(4,676)	(4,424)	(9,163)
Employee-related expenditure		(14,789)	(13,574)	(27,468)
Exploration expenditure and feasibility costs		(167)	(213)	(352)
Depreciation and amortisation		(8,392)	(8,301)	(16,425)
Other expenses and income		(5,850)	(7,102)	(15,316)
Translation gains/(losses)		454	(1,190)	(11)
Other operating expenses and income		(6,304)	(5,912)	(15,305)
Equity accounted profits, net of tax		876	766	1,443
Operating profit before remeasurement items and once-off Sasol Khanyisa share-based payment		20,192	16,030	30,514
Remeasurement items		599	(4,244)	(9,901)
Sasol Khanyisa once-off share-based payment				(2,866)
Earnings before interest and tax (EBIT)		20,791	11,786	17,747
Finance income	[1]	420	1,192	1,716
Finance costs	[2]	(252)	(1,689)	(3,759)
Earnings before tax		20,959	11,289	15,704
Taxation		(5,057)	(3,562)	(5,558)
Earnings for the period		15,902	7,727	10,146
Attributable to
Owners of Sasol Limited		14,740	6,901	8,729
Non-controlling interests in subsidiaries		1,162	826	1,417
Earnings for the period		R 15,902	R 7,727	R 10,146
Per share information
Basic earnings per share (in rand per share)		R 23.92	R 11.29	R 14.26
Diluted earnings per share (in rand per share)		R 23.76	R 11.25	R 14.18
[1]	Finance income decreased due to lower dividend income. This is mainly due to the divestment from Petronas Chemicals Olefins Sdn Bhd in March 2018.
[2]	Finance costs decreased mainly due to the adoption of the amendment to IAS 23 'Borrowing Costs' on 1 July 2018, which resulted in a higher capitalisation of costs.

Statement of comprehensive inco

Statement of comprehensive income - ZAR (R) R in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Statement of comprehensive income
Earnings for the period	R 15,902	R 7,727	R 10,146
Other comprehensive income, net of tax
Items that can be subsequently reclassified to the income statement	3,817	(3,189)	6,068
Effect of translation of foreign operations	4,169	(3,348)	5,237
Effect of cash flow hedges	(452)	343	1,233
Fair value of investments available-for-sale		15	13
Tax on items that can be subsequently reclassified to the income statement	100	(199)	(415)
Items that cannot be subsequently reclassified to the income statement	56	(146)	(54)
Remeasurements on post-retirement benefit obligations	5	(204)	(80)
Fair value of investments through other comprehensive income	99
Tax on items that cannot be subsequently reclassified to the income statement	(48)	58	26
Total comprehensive income for the period	19,775	4,392	16,160
Attributable to
Owners of Sasol Limited	18,601	3,570	14,727
Non-controlling interests in subsidiaries	1,174	822	1,433
Total comprehensive income for the period	R 19,775	R 4,392	R 16,160

Statement of comprehensive in_2

Statement of comprehensive income (Parenthetical) R in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018ZAR (R)R / €	Dec. 31, 2017ZAR (R)R / €	Jun. 30, 2018ZAR (R)R / €
Statement of comprehensive income
Closing exchange rate	16.47	14.84	16.04
Loss on reclassification from cash flow hedge reserve to profit and loss	R (48)	R (189)	R (286)
Derivative gain relating to ineffective portion of hedge	R 57	R 16	R 52

Statement of financial position

Statement of financial position - ZAR (R) R in Millions	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Assets
Property, plant and equipment	R 181,552	R 167,457	R 166,331
Assets under construction	184,007	165,361	135,399
Goodwill and other intangible assets	2,792	2,687	2,355
Equity accounted investments	10,961	10,991	9,679
Post-retirement benefit assets	1,292	1,498	612
Deferred tax assets	4,302	4,096	3,414
Other long-term assets	7,223	5,888	3,857
Non-current assets	392,129	357,978	321,647
Assets in disposal groups held for sale	136	113	1,904
Short-term investments		85
Inventories	31,203	29,364	28,903
Trade and other receivables	30,515	33,031	32,996
Short-term financial assets	2,602	1,536	4,934
Cash and cash equivalents	15,876	17,128	16,493
Current assets	80,332	81,257	85,230
Total assets	472,461	439,235	406,877
Equity and liabilities
Shareholders' equity	235,997	222,985	210,950
Non-controlling interests	6,241	5,623	5,972
Total equity	242,238	228,608	216,922
Long-term debt	114,013	89,411	74,402
Finance leases	7,216	7,280	4,273
Long-term provisions	15,621	15,160	16,725
Post-retirement benefit obligations	12,141	11,900	11,374
Long-term deferred income	850	879	879
Long-term financial liabilities	433	133	475
Deferred tax liabilities	28,773	25,908	27,312
Non-current liabilities	179,047	150,671	135,440
Liabilities in disposal groups held for sale	44	36	178
Short-term debt	10,243	14,709	17,278
Short-term financial liabilities	1,264	1,926	948
Other current liabilities	39,519	43,196	35,945
Bank overdraft	106	89	166
Current liabilities	51,176	59,956	54,515
Total equity and liabilities	R 472,461	R 439,235	R 406,877

Statement of financial positi_2

Statement of financial position (Parenthetical) - Dec. 31, 2018 $ in Millions, R in Billions	USD ($)	ZAR (R)
US
Geographical areas
Investment tax credits receivable	$ 104	R 1.5

Statement of changes in equity

Statement of changes in equity - ZAR (R) R in Millions	Shareholders' equity	Share capital	Share repurchase programme	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, 2017											R 217,234
Movement in share-based payment reserve											505
Share-based payment expense											453
Deferred tax											52
Total comprehensive income for the period											4,392
Dividends paid to shareholders											(4,836)
Dividends paid to non-controlling shareholders in subsidiaries											(373)
Balance at end of period at Dec. 31, 2017	R 210,950	R 29,282	R (2,641)	R 179,306	R (12,551)	R 19,940	R (1,928)	R 45	R (503)	R 5,972	216,922
Balance at beginning of period at Jun. 30, 2017											217,234
Movement in share-based payment reserve											3,942
Share-based payment expense											823
Deferred tax											166
Sasol Khanyisa transaction											2,953
Total comprehensive income for the period											16,160
Transactions with non-controlling shareholders											(51)
Dividends paid to shareholders											(7,952)
Dividends paid to non-controlling shareholders in subsidiaries											(725)
Balance at end of period at Jun. 30, 2018	222,985	15,775		184,352	(4,021)	28,500	(1,844)	43	180	5,623	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	R 242,238

Statement of changes in equity

Statement of changes in equity (Parenthetical) - ZAR (R) R in Millions	Sep. 07, 2018	Jun. 30, 2018
Adjustment to opening shareholders' equity position		R (121)
Sasol Inzalo Public Funding (RF) (Pty) Ltd | Sasol preferred ordinary shares
Repurchase of shares	16,085,199
Share repurchase price	R 542.11

Statement of cash flows

Statement of cash flows - ZAR (R) R in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Statement of cash flows
Cash receipts from customers	R 103,145	R 86,844	R 178,672
Cash paid to suppliers and employees	(78,377)	(72,834)	(135,795)
Cash generated by operating activities	24,768	14,010	42,877
Dividends received from equity accounted investments	1,423	1,052	1,702
Finance income received	343	1,106	1,565
Finance costs paid	(2,494)	(1,864)	(4,797)
Tax paid	(1,339)	(4,070)	(7,041)
Cash available from operating activities	22,701	10,234	34,306
Dividends paid	(4,897)	(4,836)	(7,952)
Dividends paid to non-controlling shareholders in subsidiaries	(557)	(373)	(725)
Cash retained from operating activities	17,247	5,025	25,629
Total additions to non-current assets	(31,736)	(30,574)	(55,891)
Additions to non-current assets	(30,433)	(27,734)	(53,384)
Decrease in capital project related payables	(1,303)	(2,840)	(2,507)
Additional cash contributions from/(to) equity accounted investments	54	(76)	(164)
Proceeds on disposals and scrappings	53	8	2,316
Purchase of investments	(167)	(57)	(124)
Other net cash flow from investing activities	114	(37)	(116)
Cash used in investing activities	(31,682)	(30,736)	(53,979)
Final settlement to Sasol Inzalo Public Shareholders	(1,372)
Proceeds from long-term debt	20,470	18,746	24,961
Repayment of long-term debt	(12,478)	(3,151)	(9,199)
Proceeds from short-term debt	7,827	29	1,957
Repayment of short-term debt	(1,629)	(2,636)	(2,607)
Cash generated by financing activities	12,818	12,988	15,112
Translation effects on cash and cash equivalents	348	(256)	954
Decrease in cash and cash equivalents	(1,269)	(12,979)	(12,284)
Cash and cash equivalents at the beginning of the period	17,039	29,323	29,323
Reclassification to held for sale		(17)
Cash and cash equivalents at the end of the period	R 15,770	R 16,327	R 17,039

Segment report

Segment report	6 Months Ended
	Dec. 31, 2018
Segment report
Segment report	Segment report for the period ended Turnover Earnings before interest and tax Full year Half year Half year Half year Half year Full year 30 Jun 18* 31 Dec 17* 31 Dec 18 31 Dec 18 31 Dec 17* 30 Jun 18* Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed Rm Rm Rm Segment analysis Rm Rm Rm 23 995 11 973 12 584 Operating Business Units 3 425 1 561 19 797 10 015 9 906 ■ Mining 2 661 2 864 5 244 4 198 1 958 2 678 ■ Exploration and Production International (2 649) (3 683) 178 760 86 740 101 403 Strategic Business Units 16 240 12 178 22 852 69 773 32 746 43 623 ■ Energy 9 565 5 748 14 081 43 979 22 017 23 011 ■ Base Chemicals 3 076 2 541 65 008 31 977 34 769 ■ Performance Chemicals 3 599 3 889 7 853 ■ Group Functions 1 126 (6 666) 202 807 98 720 114 013 Group performance 20 791 11 786 17 747 (21 346) (10 567) (11 069) Intersegmental turnover 181 461 88 153 102 944 External turnover * Restated for the transfer of the Phenolics, Ammonia and Specialty Gases businesses from Performance Chemicals to Base Chemicals.

Turnover

Turnover	6 Months Ended
	Dec. 31, 2018
Turnover
Turnover	Revenue by major product line Half year Half year Full year 31 Dec 18 31 Dec 17 30 Jun 18 Reviewed Reviewed Reviewed Rm Rm Rm Base Chemicals 22 668 21 634 43 239 Polymers 12 346 11 254 22 679 Solvents 6 441 6 583 13 172 Fertilisers and explosives 2 333 2 164 4 129 Other base chemicals 1 548 1 633 3 259 Performance Chemicals 34 349 31 504 64 016 Organics 26 193 24 091 49 001 Waxes 4 387 4 450 8 462 Advanced materials 3 769 2 963 6 553 Upstream, Energy and Other Coal 1 826 1 878 3 446 Liquid fuels and crude oil 39 633 28 960 62 555 Gas (methane rich and natural gas) and condensate 2 991 2 762 5 412 Other (IP, refinery services) 1 815 Revenue from contracts with customers 102 458 87 674 180 483 Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage) Total external turnover 102 944 88 153 181 461

Salient features

Salient features	6 Months Ended
	Dec. 31, 2018
Salient features
Salient features	Salient features for the period ended Half year Half Full 31 Dec 18 31 Dec 30 Jun Selected ratios Earnings before interest and tax margin % Finance costs cover times Net borrowings to shareholders’ equity (gearing) % Net debt to EBITDA (annualised) times Dividend cover¹ times Share statistics Total shares in issue million Sasol ordinary shares in issue million Sasol BEE ordinary shares in issue million Sasol preferred ordinary shares in issue million – Treasury shares (share repurchase programme) million – – Weighted average number of shares million Diluted weighted average number of shares million Share price (closing) Rand Market capitalisation - Sasol ordinary shares Rm 265 455 279 602 313 323 Market capitalisation - Sasol BEE ordinary shares Rm 1 302 1 107 1 918 Net asset value per share Rand Dividend per share Rand - interim Rand - final Rand – – 1 With effect from 23 February 2018, the Board approved a change in the base of the dividend policy from HEPS to CHEPS. Half year Half Full 31 Dec 18 31 Dec 30 Jun Other financial information Total debt (including bank overdraft) Rm 131 578 96 119 111 489 - interest-bearing Rm 130 800 94 952 110 052 - non-interest-bearing Rm 1 167 1 437 Finance expense capitalised 1 Rm 3 440 1 634 3 568 Capital commitments (subsidiaries and joint operations) Rm 58 640 69 813 63 276 - authorised and contracted Rm 187 515 150 520 179 172 - authorised, not yet contracted Rm 40 555 46 322 40 687 - less expenditure to date Rm (169 430) (127 029) (156 583) Capital commitments (equity accounted investments) Rm 1 018 - authorised and contracted Rm - authorised, not yet contracted Rm - less expenditure to date Rm Guarantees (excluding treasury facilities) - maximum potential exposure Rm 77 469 75 528 80 260 - related debt recognised on the balance sheet Rm 74 328 70 676 76 199 Effective tax rate % Adjusted effective tax rate 2 % Number of employees 3 number 31 430 31 000 31 270 Average crude oil price - dated Brent US$/barrel Average rand/US$ exchange rate 1US$ = Rand Closing rand/US$ exchange rate 1US$ = Rand 1 Finance expense capitalised increased due to the adoption of the amendment to IAS 23 ‘Borrowing Costs’ on 1 July 2018. 2 Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items. 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. Reviewed Review Audited Half year Half Full 31 Dec 18 31 Dec 30 Jun Rm Rm Rm Reconciliation of headline earnings Earnings attributable to owners of Sasol Limited 14 740 6 901 8 729 Effect of remeasurement items for subsidiaries and joint operations¹ 4 244 9 901 Impairment of property, plant and equipment 2 715 7 623 Impairment of assets under construction – 1 492 Impairment of other assets – – Reversal of impairment² (Profit)/loss on disposal of non-current assets Loss/(profit) on disposal of investment in businesses – Scrapping of non-current assets 1 453 1 654 Write-off of unsuccessful exploration wells Realisation of foreign currency translation reserve – – Tax effects and non-controlling interests (1 843) Effect of remeasurement items for equity accounted investments Headline earnings 14 324 10 805 16 798 Headline earnings adjustments by segment ■ Mining ■ Exploration and Production International 2 835 4 241 ■ Energy 1 249 ■ Base Chemicals 4 499 ■ Performance Chemicals ■ Group Functions – Remeasurement items 4 244 9 901 Headline earnings per share Rand Diluted headline earnings per share Rand 1 Included in the prior period is the scrapping of our US gas-to-liquids (GTL) project amounting to R1,1 billion (US$83 million) and a partial impairment of our Canadian shale gas assets of R2,8 billion (CAD281 million). 2 Includes the impact of the partial reversal of the previous impairment of the Chlor Vinyls cash generating unit as a result of the Sasolburg useful life structural change in the integrated ethylene value chain. The performance of this CGU is highly sensitive to the rand/US dollar exchange rate and US$ product prices. Macroeconomic factors are outside of the control of management and as such we continue to monitor these assets. The reader is referred to the definitions contained in the 2018 Sasol Limited financial statements.

Basis of preparation

Basis of preparation	6 Months Ended
	Dec. 31, 2018
Basis of preparation
Basis of preparation	Basis of preparation The condensed consolidated interim financial statements for the six months ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards, 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 2018, except for the adoption of IFRS 9 ‘Financial Instruments’, IFRS 15 ‘Revenue from Contracts with Customers’ and an amendment to IAS 23 ‘Borrowing Costs’ with effect from 1 July 2018. Both IFRS 9 and IFRS 15 were adopted using the modified transition approach, where the comparative financial information is not restated as permitted by the standard. The amendment to IAS 23 is applied prospectively. 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, Brenda Baijnath CA(SA). New International Financial Reporting Standards adopted IFRS 9 ‘Financial Instruments’ IFRS 9 provides a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. The group’s financial assets are classified as measured at amortised cost, fair value through profit or loss, or fair value through other comprehensive income. The group elected to recognise the fair value gains and losses on its current unlisted equity investments through other comprehensive income. Due to the limited unlisted investments held, this change in measurement basis from amortised cost to fair value had an insignificant effect on Sasol’s accounting, and therefore no transition adjustment is presented. For financial liabilities the existing classification and measurement requirements of IAS 39 will remain the same. Under IFRS 9, impairments of financial assets classified as measured at amortised cost are recognised on an expected loss basis which incorporates forward-looking information when assessing credit risk, with the expected losses recognised in profit or loss. The effect of the change was inconsequential on Sasol’s accounting as the expected loss basis is not significantly different from the stringent debtor management policies currently applied by Sasol, and therefore no transition adjustment is presented. The adoption of IFRS 9 did not have a significant impact on the group’s accounting policies relating to financial assets and financial liabilities. The IFRS 9 hedge accounting requirements are not effective for the group until the International Accounting Standards Board’s macro hedging project is finalised. IFRS 15 ‘Revenue from Contracts with Customers’ Under IFRS 15, revenue from contracts with customers is recognised when a performance obligation is satisfied by transferring a promised good or service to a customer. A good or service is transferred when the customer obtains control of that good or service. The transfer of control of Sasol’s energy and chemical products usually coincides with title passing to the customer and the customer taking physical possession, with the group’s performance obligations primarily satisfied at a point in time. Amounts of revenue recognised relating to performance obligations over time are not significant. The accounting for revenue under IFRS 15 therefore represents an inconsequential change from the group’s previous practice for recognising revenue from sales with customers, and therefore no transition adjustment is presented. An analysis of revenue from contracts with customers by product is presented on page 18. Amounts presented for comparative periods include revenues determined in accordance with the group’s previous accounting policies, but the differences are inconsequential. Amendment to IAS 23 ‘Borrowing Costs’ The amendment to IAS 23 clarifies that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. Previously, if any specific borrowing remained outstanding after the related asset was ready for its intended use or sale, Sasol recognised the finance costs related to this borrowing in profit and loss. The adoption of the amendment has been applied prospectively from 1 July 2018 and had a material impact on the group’s earnings for the period as Sasol has a large number of projects to which borrowing costs are capitalised. The impact of applying the amendment for the period ended 31 December 2018 is: Half year Half year 31 Dec 18 31 Dec 18 (pro forma Adjustment Half year Rm Rm Rm Non-current assets Property, plant, equipment and assets under construction 364 610 365 559 Income statement Finance costs (1 201) IFRS 16 ‘Leases’ (Effective for the group from 1 July 2019) IFRS 16 will be applied by the group from 1 July 2019. Under the new standard, all lease contracts, with limited exceptions, will require a lessee 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. The adoption of the standard will have a material effect on the group’s financial statements, significantly increasing the group’s recognised assets and liabilities. We expect an increase in the depreciation expense and also in cash flows from operating activities as the lease payments will be reflected as financing outflows. The group will apply the full retrospective approach permitted by the standard, which requires restatement of the comparative period’s financial information. Based on the group’s current assessment, the impact is expected to be between R9 billion – R12 billion of additional liabilities that will be recognised on the statement of financial position with a corresponding lease asset. The additional lease liability will add between 3,8% - 5,1% on gearing. Pro forma financial information Core headline earnings, Normalised EBIT, EBITDA and US dollar convenience translations included in this announcement constitutes pro forma financial information. The pro forma financial information is the responsibility of the board of directors and is presented for illustrative purposes only. Because of its nature, the pro forma financial information may not fairly present Sasol’s financial position, changes in equity, results of operations or cash flows. The underlying information, used in the preparation of the pro forma financial information, has been prepared using accounting policies which comply with IFRS and are consistent with those applied in the published group consolidated annual financial statements for the year ended 30 June 2018. This pro forma information has not been reported on by the group’s auditors, being PricewaterhouseCoopers Inc.

Related party transactions

Related party transactions	6 Months Ended
	Dec. 31, 2018
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 2018	6 Months Ended
	Dec. 31, 2018
Significant events and transactions since 30 June 2018
Significant events and transactions since 30 June 2018	Significant events and transactions since 30 June 2018 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

Independent review by the audit

Independent review by the auditors	6 Months Ended
	Dec. 31, 2018
Independent review by the auditors
Independent review by the auditors	Independent review by the auditors These condensed consolidated interim financial statements, including the segment report for the six months ended 31 December 2018 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified conclusion thereon. The individual auditor assigned to perform the review is Johan Potgieter. The auditor’s report does not necessarily report on all of the information contained in this announcement of interim financial results.

Financial instruments

Financial instruments	6 Months Ended
	Dec. 31, 2018
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 2018. This includes the US dollar bonds, interest rate swap, crude oil put options 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 and the fact that these instruments are traded in an active market. 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. Instrument IFRS 13 Carrying Fair Valuation method Significant inputs Listed long-term debt Level 1 (47 027) (46 155) Fair value Quoted market price for the same or similar instruments Derivative financial assets and liabilities Level 2 Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate Foreign exchange rates, market commodity prices, US$ swap curve, as appropriate For all other financial instruments, fair value approximates carrying value.

Significant accounting policies

Significant accounting policies (Policies)	6 Months Ended
	Dec. 31, 2018
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 2018, except for the adoption of IFRS 9 ‘Financial Instruments’, IFRS 15 ‘Revenue from Contracts with Customers’ and an amendment to IAS 23 ‘Borrowing Costs’ with effect from 1 July 2018. Both IFRS 9 and IFRS 15 were adopted using the modified transition approach, where the comparative financial information is not restated as permitted by the standard. The amendment to IAS 23 is applied prospectively.

Segment report (Tables)

Segment report (Tables)	6 Months Ended
	Dec. 31, 2018
Segment report
Schedule of segment information	Turnover Earnings before interest and tax Full year Half year Half year Half year Half year Full year 30 Jun 18* 31 Dec 17* 31 Dec 18 31 Dec 18 31 Dec 17* 30 Jun 18* Reviewed Reviewed Reviewed Reviewed Reviewed Reviewed Rm Rm Rm Segment analysis Rm Rm Rm 23 995 11 973 12 584 Operating Business Units 3 425 1 561 19 797 10 015 9 906 ■ Mining 2 661 2 864 5 244 4 198 1 958 2 678 ■ Exploration and Production International (2 649) (3 683) 178 760 86 740 101 403 Strategic Business Units 16 240 12 178 22 852 69 773 32 746 43 623 ■ Energy 9 565 5 748 14 081 43 979 22 017 23 011 ■ Base Chemicals 3 076 2 541 65 008 31 977 34 769 ■ Performance Chemicals 3 599 3 889 7 853 ■ Group Functions 1 126 (6 666) 202 807 98 720 114 013 Group performance 20 791 11 786 17 747 (21 346) (10 567) (11 069) Intersegmental turnover 181 461 88 153 102 944 External turnover * Restated for the transfer of the Phenolics, Ammonia and Specialty Gases businesses from Performance Chemicals to Base Chemicals.

Turnover (Tables)

Turnover (Tables)	6 Months Ended
	Dec. 31, 2018
Turnover
Schedule of revenue by major product line	Revenue by major product line Half year Half year Full year 31 Dec 18 31 Dec 17 30 Jun 18 Reviewed Reviewed Reviewed Rm Rm Rm Base Chemicals 22 668 21 634 43 239 Polymers 12 346 11 254 22 679 Solvents 6 441 6 583 13 172 Fertilisers and explosives 2 333 2 164 4 129 Other base chemicals 1 548 1 633 3 259 Performance Chemicals 34 349 31 504 64 016 Organics 26 193 24 091 49 001 Waxes 4 387 4 450 8 462 Advanced materials 3 769 2 963 6 553 Upstream, Energy and Other Coal 1 826 1 878 3 446 Liquid fuels and crude oil 39 633 28 960 62 555 Gas (methane rich and natural gas) and condensate 2 991 2 762 5 412 Other (IP, refinery services) 1 815 Revenue from contracts with customers 102 458 87 674 180 483 Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage) Total external turnover 102 944 88 153 181 461

Salient features (Tables)

Salient features (Tables)	6 Months Ended
	Dec. 31, 2018
Salient features
Summary of selected ratios and share statistics	Half year Half Full 31 Dec 18 31 Dec 30 Jun Selected ratios Earnings before interest and tax margin % Finance costs cover times Net borrowings to shareholders’ equity (gearing) % Net debt to EBITDA (annualised) times Dividend cover¹ times Share statistics Total shares in issue million Sasol ordinary shares in issue million Sasol BEE ordinary shares in issue million Sasol preferred ordinary shares in issue million – Treasury shares (share repurchase programme) million – – Weighted average number of shares million Diluted weighted average number of shares million Share price (closing) Rand Market capitalisation - Sasol ordinary shares Rm 265 455 279 602 313 323 Market capitalisation - Sasol BEE ordinary shares Rm 1 302 1 107 1 918 Net asset value per share Rand Dividend per share Rand - interim Rand - final Rand – – 1 With effect from 23 February 2018, the Board approved a change in the base of the dividend policy from HEPS to CHEPS.
Summary of other financial information	Half year Half Full 31 Dec 18 31 Dec 30 Jun Other financial information Total debt (including bank overdraft) Rm 131 578 96 119 111 489 - interest-bearing Rm 130 800 94 952 110 052 - non-interest-bearing Rm 1 167 1 437 Finance expense capitalised 1 Rm 3 440 1 634 3 568 Capital commitments (subsidiaries and joint operations) Rm 58 640 69 813 63 276 - authorised and contracted Rm 187 515 150 520 179 172 - authorised, not yet contracted Rm 40 555 46 322 40 687 - less expenditure to date Rm (169 430) (127 029) (156 583) Capital commitments (equity accounted investments) Rm 1 018 - authorised and contracted Rm - authorised, not yet contracted Rm - less expenditure to date Rm Guarantees (excluding treasury facilities) - maximum potential exposure Rm 77 469 75 528 80 260 - related debt recognised on the balance sheet Rm 74 328 70 676 76 199 Effective tax rate % Adjusted effective tax rate 2 % Number of employees 3 number 31 430 31 000 31 270 Average crude oil price - dated Brent US$/barrel Average rand/US$ exchange rate 1US$ = Rand Closing rand/US$ exchange rate 1US$ = Rand 1 Finance expense capitalised increased due to the adoption of the amendment to IAS 23 ‘Borrowing Costs’ on 1 July 2018. 2 Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items. 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	Reviewed Review Audited Half year Half Full 31 Dec 18 31 Dec 30 Jun Rm Rm Rm Reconciliation of headline earnings Earnings attributable to owners of Sasol Limited 14 740 6 901 8 729 Effect of remeasurement items for subsidiaries and joint operations¹ 4 244 9 901 Impairment of property, plant and equipment 2 715 7 623 Impairment of assets under construction – 1 492 Impairment of other assets – – Reversal of impairment² (Profit)/loss on disposal of non-current assets Loss/(profit) on disposal of investment in businesses – Scrapping of non-current assets 1 453 1 654 Write-off of unsuccessful exploration wells Realisation of foreign currency translation reserve – – Tax effects and non-controlling interests (1 843) Effect of remeasurement items for equity accounted investments Headline earnings 14 324 10 805 16 798 Headline earnings adjustments by segment ■ Mining ■ Exploration and Production International 2 835 4 241 ■ Energy 1 249 ■ Base Chemicals 4 499 ■ Performance Chemicals ■ Group Functions – Remeasurement items 4 244 9 901 Headline earnings per share Rand Diluted headline earnings per share Rand 1 Included in the prior period is the scrapping of our US gas-to-liquids (GTL) project amounting to R1,1 billion (US$83 million) and a partial impairment of our Canadian shale gas assets of R2,8 billion (CAD281 million). 2 Includes the impact of the partial reversal of the previous impairment of the Chlor Vinyls cash generating unit as a result of the Sasolburg useful life structural change in the integrated ethylene value chain. The performance of this CGU is highly sensitive to the rand/US dollar exchange rate and US$ product prices. Macroeconomic factors are outside of the control of management and as such we continue to monitor these assets. The reader is referred to the definitions contained in the 2018 Sasol Limited financial statements.

Basis of preparation (Tables)

Basis of preparation (Tables)	6 Months Ended
	Dec. 31, 2018
Basis of preparation
Summary of impact of applying amendments to IAS 23	Half year Half year 31 Dec 18 31 Dec 18 (pro forma Adjustment Half year Rm Rm Rm Non-current assets Property, plant, equipment and assets under construction 364 610 365 559 Income statement Finance costs (1 201)

Financial instruments (Tables)

Financial instruments (Tables)	6 Months Ended
	Dec. 31, 2018
Financial instruments
Schedule of financial instruments classified into the hierarchical levels in line with IFRS 13	Instrument IFRS 13 Carrying Fair Valuation method Significant inputs Listed long-term debt Level 1 (47 027) (46 155) Fair value Quoted market price for the same or similar instruments Derivative financial assets and liabilities Level 2 Forward rate interpolator model, discounted expected cash flows, numerical approximation, as appropriate Foreign exchange rates, market commodity prices, US$ swap curve, as appropriate

Segment report - Segment inform

Segment report - Segment information (Details) - ZAR (R) R in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Income Statement
Turnover	R 102,944	R 88,153	R 181,461
Earnings before interest and tax (EBIT)	20,791	11,786	17,747
Operating Business Units
Income Statement
Earnings before interest and tax (EBIT)	3,425	215	1,561
Mining
Income Statement
Earnings before interest and tax (EBIT)	2,661	2,864	5,244
Exploration And Production International
Income Statement
Earnings before interest and tax (EBIT)	764	(2,649)	(3,683)
Strategic Business Units
Income Statement
Earnings before interest and tax (EBIT)	16,240	12,178	22,852
Energy
Income Statement
Earnings before interest and tax (EBIT)	9,565	5,748	14,081
Base Chemicals
Income Statement
Earnings before interest and tax (EBIT)	3,076	2,541	918
Performance Chemicals
Income Statement
Earnings before interest and tax (EBIT)	3,599	3,889	7,853
Group Functions
Income Statement
Earnings before interest and tax (EBIT)	1,126	(607)	(6,666)
Group performance
Income Statement
Turnover	114,013	98,720	202,807
Group performance | Operating Business Units
Income Statement
Turnover	12,584	11,973	23,995
Group performance | Mining
Income Statement
Turnover	9,906	10,015	19,797
Group performance | Exploration And Production International
Income Statement
Turnover	2,678	1,958	4,198
Group performance | Strategic Business Units
Income Statement
Turnover	101,403	86,740	178,760
Group performance | Energy
Income Statement
Turnover	43,623	32,746	69,773
Group performance | Base Chemicals
Income Statement
Turnover	23,011	22,017	43,979
Group performance | Performance Chemicals
Income Statement
Turnover	34,769	31,977	65,008
Group performance | Group Functions
Income Statement
Turnover	26	7	52
Intersegmental turnover
Income Statement
Turnover	R (11,069)	R (10,567)	R (21,346)

Turnover - Revenue by major pro

Turnover - Revenue by major product lines (Details) - ZAR (R) R in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Income Statement
Revenue from contracts with customers	R 102,458	R 87,674	R 180,483
Revenue from other contracts (franchise rentals, use of fuel tanks and fuel storage)	486	479	978
Total turnover	102,944	88,153	181,461
Base Chemicals
Income Statement
Revenue from contracts with customers	22,668	21,634	43,239
Polymers
Income Statement
Revenue from contracts with customers	12,346	11,254	22,679
Solvents
Income Statement
Revenue from contracts with customers	6,441	6,583	13,172
Fertilisers and explosives
Income Statement
Revenue from contracts with customers	2,333	2,164	4,129
Other base chemicals
Income Statement
Revenue from contracts with customers	1,548	1,633	3,259
Performance Chemicals
Income Statement
Revenue from contracts with customers	34,349	31,504	64,016
Organics
Income Statement
Revenue from contracts with customers	26,193	24,091	49,001
Waxes
Income Statement
Revenue from contracts with customers	4,387	4,450	8,462
Advanced materials
Income Statement
Revenue from contracts with customers	3,769	2,963	6,553
Coal
Income Statement
Revenue from contracts with customers	1,826	1,878	3,446
Liquid fuels and crude oil
Income Statement
Revenue from contracts with customers	39,633	28,960	62,555
Gas (methane rich and natural gas) and condensate
Income Statement
Revenue from contracts with customers	2,991	2,762	5,412
Other (IP, refinery services)
Income Statement
Revenue from contracts with customers	R 991	R 936	R 1,815

Salient features - Selected rat

Salient features - Selected ratios and Share statistics (Details) R / shares in Units, shares in Millions, R in Millions		6 Months Ended		12 Months Ended
		Dec. 31, 2018ZAR (R)R / sharesshares	Dec. 31, 2017ZAR (R)R / sharesshares	Jun. 30, 2018ZAR (R)R / sharesshares
Selected ratios
Earnings before interest and tax margin		20.20%	13.40%	9.80%
Finance costs cover		8.5	7	4.1
Net borrowings to shareholders' equity (gearing)		48.90%	38.00%	42.40%
Net debt to EBITDA (annualised)		2.2	1.7	1.8
Dividend cover	[1]	3.6	3.6	2.8
Share statistics
Shares in issue		630.9	681.4	645.6
Treasury shares (share repurchase programme)			8.8
Weighted average number of shares		616.2	611.5	612.2
Diluted weighted average number of shares		620.5	613.8	615.9
Share price (closing) | R / shares		R 425	R 428.18	R 502.86
Net asset value per share | R / shares		379.70	346.10	359.60
Dividends per share | R / shares		5.90	5	12.90
Dividends per share - interim | R / shares		R 5.90	R 5	5
Dividends per share- final | R / shares				R 7.90
Sasol ordinary shares
Share statistics
Shares in issue		624.6	653	623.1
Market capitalisation | R		R 265,455	R 279,602	R 313,323
Sasol BEE ordinary shares
Share statistics
Shares in issue		6.3	2.8	6.4
Market capitalisation | R		R 1,302	R 1,107	R 1,918
Sasol preferred ordinary shares
Share statistics
Shares in issue			25.6	16.1
[1]	With effect from 23 February 2018, the Board approved a change in the base of the dividend policy from HEPS to CHEPS.

Salient features - Other financ

Salient features - Other financial information (Details) R in Millions		6 Months Ended		12 Months Ended
		Dec. 31, 2018ZAR (R)$ / bblemployeeR / $	Dec. 31, 2017ZAR (R)$ / bblemployeeR / $	Jun. 30, 2018ZAR (R)$ / bblemployeeR / $	Dec. 31, 2018R / €	Dec. 31, 2018R / $	Dec. 31, 2018ZAR (R)	Jun. 30, 2018R / €	Jun. 30, 2018R / $	Jun. 30, 2018ZAR (R)	Dec. 31, 2017R / €	Dec. 31, 2017R / $	Dec. 31, 2017ZAR (R)
Other financial information
Total debt (including bank overdraft)							R 131,578			R 111,489			R 96,119
Interest-bearing debt							130,800			110,052			94,952
Non-interest-bearing debt							778			1,437			1,167
Finance expense capitalised	[1]	R 3,440	R 1,634	R 3,568
Guarantees (excluding treasury facilities)
maximum potential exposure							77,469			80,260			75,528
related debt recognised on the balance sheet							74,328			76,199			70,676
Effective tax rate		24.10%	31.60%	35.40%
Adjusted effective tax rate	[2]	29.00%	26.40%	27.30%
Number of employees | employee	[3]	31,430	31,000	31,270
Average crude oil price - dated Brent | $ / bbl		71.33	56.74	63.62
Average foreign exchange rate | R / $		14.20	13.40	12.85
Closing foreign exchange rate					16.47	14.36		16.04	13.73		14.84	12.37
Subsidiaries and joint operations
Other financial information
Total capital commitments							58,640			63,276			69,813
Authorised and contracted							187,515			179,172			150,520
Authorised, not yet contracted							40,555			40,687			46,322
less expenditure to date							(169,430)			(156,583)			(127,029)
Equity accounted investments
Other financial information
Total capital commitments							1,018			893			717
Authorised and contracted							618			536			404
Authorised, not yet contracted							620			623			652
less expenditure to date							R (220)			R (266)			R (339)
[1]	Finance expense capitalised increased due to the adoption of the amendment to IAS 23 'Borrowing Costs' on 1 July 2018.
[2]	Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.
[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.

Salient features - Reconciliati

Salient features - Reconciliation of headline earnings (Details) R / shares in Units, R in Millions, $ in Millions, $ in Millions		6 Months Ended		12 Months Ended
		Dec. 31, 2018ZAR (R)R / shares	Dec. 31, 2017ZAR (R)R / shares	Jun. 30, 2018USD ($)	Jun. 30, 2018CAD ($)	Jun. 30, 2018ZAR (R)R / shares
Salient features
Earnings attributable to owners of Sasol Limited		R 14,740	R 6,901			R 8,729
Effect of remeasurement items for subsidiaries and joint operations	[1]	(599)	4,244			9,901
Reversal of impairment	[2]	(957)	(69)			(354)
(Profit)/loss on disposal of non-current assets		(27)	(36)			7
Loss/(profit) on disposal of investment in businesses			83			(833)
Scrapping of non-current assets		376	1,453			1,654
Write-off of unsuccessful exploration wells		7	36			312
Realisation of foreign currency translation reserve			(3)
Tax effect and non-controlling interest		168	(339)			(1,843)
Effect of remeasurement items for equity accounted investments		15	(1)			11
Headline earnings		R 14,324	R 10,805			R 16,798
Headline earnings per share (HEPS)
Headline earnings per share | R / shares		R 23.25	R 17.67			R 27.44
Diluted headline earnings per share | R / shares		R 23.08	R 17.60			R 27.27
Canadian shale gas asset
Salient features
Impairment loss					$ 281	R 2,800
US Gas-To-Liquids (GTL)
Headline earnings per share (HEPS)
Scrapping of assets				$ 83		1,100
Mining
Salient features
Effect of remeasurement items for subsidiaries and joint operations		R 7	R (7)			34
Exploration And Production International
Salient features
Effect of remeasurement items for subsidiaries and joint operations		7	2,835			4,241
Energy
Salient features
Effect of remeasurement items for subsidiaries and joint operations		122	1,249			971
Base Chemicals
Salient features
Effect of remeasurement items for subsidiaries and joint operations		(820)	148			4,499
Performance Chemicals
Salient features
Effect of remeasurement items for subsidiaries and joint operations		85	1			116
Group Functions
Salient features
Effect of remeasurement items for subsidiaries and joint operations			18			40
Property, plant and equipment
Salient features
Impairment loss		R 2	2,715			7,623
Assets under construction
Salient features
Impairment loss			50			R 1,492
Other assets
Salient features
Impairment loss			R 15
[1]	Included in the prior period is the scrapping of our US gas-to-liquids (GTL) project amounting to R1.1 billion (US$83 million) and a partial impairment of our Canadian shale gas assets of R2.8 billion (CAD281 million).
[2]	Includes the impact of the partial reversal of the previous impairment of the Chlor Vinyls cash generating unit as a result of the Sasolburg useful life structural change in the integrated ethylene value chain. The performance of this CGU is highly sensitive to the rand/US dollar exchange rate and US$ product prices. Macroeconomic factors are outside of the control of management and as such we continue to monitor these assets.

Basis of preparation - Standard

Basis of preparation - Standards applied (Details) - ZAR (R) R in Millions		6 Months Ended		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Disclosure of initial application of standards or interpretations
Property, plant and equipment and assets under construction		R 365,559
Finance costs	[1]	(252)	R (1,689)	R (3,759)
Pro forma results before amendment
Disclosure of initial application of standards or interpretations
Property, plant and equipment and assets under construction		364,610
Finance costs		(1,201)
Adjustment on adoption of IAS 23 amendment
Disclosure of initial application of standards or interpretations
Property, plant and equipment and assets under construction		949
Finance costs		R 949
[1]	Finance costs decreased mainly due to the adoption of the amendment to IAS 23 'Borrowing Costs' on 1 July 2018, which resulted in a higher capitalisation of costs.

Basis of preparation - Standa_2

Basis of preparation - Standards not yet applied (Details) - ZAR (R) R in Billions	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Disclosure of expected impact of initial application of new standards or interpretations
Gearing ratio		48.90%	42.40%	38.00%
Minimum | Increase (decrease) due to application of IFRS 16 | Forecast
Disclosure of expected impact of initial application of new standards or interpretations
Liabilities	R 9
Lease asset	R 9
Gearing ratio	3.80%
Maximum | Increase (decrease) due to application of IFRS 16 | Forecast
Disclosure of expected impact of initial application of new standards or interpretations
Liabilities	R 12
Lease asset	R 12
Gearing ratio	5.10%

Financial instruments (Details)

Financial instruments (Details) R in Millions	Dec. 31, 2018ZAR (R)
Level 1 | Listed long-term debt
Disclosure Of Financial Instruments
Financial liabilities - carrying value	R (47,027)
Financial liabilities - fair value	(46,155)
Level 2 | Derivatives
Disclosure Of Financial Instruments
Derivative financial assets and liabilities - carrying value	933
Derivative financial assets and liabilities - fair value	R 933