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 |