At 30 June, the group’s interest in equity accounted investments and the total carrying values were:

Effective 29 June 2022 Sasol disposed of 30% of its shareholding in ROMPCO. The group retains 20% shareholding and the ability to appoint 4 of the 14 directors. Accordingly, the investment in ROMPCO is accounted for as an associate from the disposal date.

There are no significant restrictions on the ability of the joint ventures or associate to transfer funds to Sasol Limited in the form of cash dividends or repayment of loans or advances.

21	Equity accounted investments continued

Impairment testing of equity accounted investments

Based on impairment indicators at each reporting date, impairment tests in respect of investments in joint ventures and associates are performed. Refer to note 9 for more information on impairment assessments performed.

Summarised financial information for the group’s share of equity accounted investments which are not material*


	2022	2021
for the year ended 30 June	Rm	Rm
Operating profit	114	128
Profit before tax	159	140
Taxation	(50)	(45)
Profit for the year	109	95

The financial information provided represents the group’s share of the results of the equity accounted investments.


	2022	2021
Capital commitments relating to equity accounted investments	Rm	Rm
Capital commitments, excluding capitalised interest, include all projects for which specific board approval has been obtained up to the reporting date. Projects still under investigation for which specific board approvals have not yet been obtained are excluded from the following:
Authorised and contracted for	688	622
Authorised but not yet contracted for	884	713
Less: expenditure to the end of year	(562)	(348)
	1 010	987

Areas of judgement:

Joint ventures and associates are assessed for materiality in relation to the group using a number of factors such as investment value, strategic importance and monitoring by those charged with governance.

ORYX GTL and ROMPCO are considered to be material as it is closely monitored by and reported on to the decision makers and are considered to be a strategically material investments.

21	Equity accounted investments continued

Summarised financial information for the group’s material equity accounted investments

In accordance with the group’s accounting policy, the results of joint ventures and associates are equity accounted. The information provided below represents the group’s material joint venture and associate. The financial information presented includes the full financial position and results of the joint venture and includes intercompany transactions and balances.


	Joint venture
	ORYX GTL Limited
	2022		2021
for the year ended 30 June	Rm		Rm
Summarised statement of financial position
Non-current assets		13 723	13 149
Deferred tax asset		292	212
Cash and cash equivalents*		4 208	2 682
Other current assets		7 775	5 307
Total assets		25 998	21 350
Other non-current liabilities		704	742
Other current liabilities		4 594	1 178
Tax payable		2 496	391
Total liabilities		7 794	2 311
Net assets		18 204	19 039
Summarised income statement
Turnover		16 620	8 538
Depreciation and amortisation		(1 625)	(1 759)
Other operating expenses		(5 497)	(4 513)
Operating profit before interest and tax		9 498	2 266
Finance income		33	6
Finance cost		(42)	(48)
Profit before tax		9 489	2 224
Taxation		(3 329)	(758)
Profit and total comprehensive income for the year		6 160	1 466
The group’s share of profits of equity accounted investment		3 019	719
49% share of profit before tax		4 650	1 090
Taxation		(1 631)	(371)

Reconciliation of summarised financial information
Net assets at the beginning of the year		19 039	21 452
Earnings before tax for the year		9 489	2 224
Taxation		(3 329)	(758)
Foreign exchange differences		2 438	(3 879)
Dividends paid**		(9 433)	—
Net assets at the end of the year		18 204	19 039
Carrying value of equity accounted investment		8 920	9 329

*Cash and cash equivalents was disclosed separately from other current assets in the current and prior year.

**ORYX GTL Limited declared a dividend of R4,6 billion (Sasol’s share) of which R3 billion has been received at 30 June 2022. Refer to note 25.

The year-end for ORYX GTL Limited is 31 December, however the group uses the financial information at 30 June.

21	Equity accounted investments continued

The carrying value of the investment represents the group’s interest in the net assets thereof.


	Associate
	The Republic of
	Mozambique Pipeline
	Investment Company
	(Pty) Ltd (ROMPCO)
	2022	2021
for the year ended 30 June	Rm	Rm
Summarised statement of financial position
Non-current assets¹	5 770	—
Cash and cash equivalents	1 056	—
Other current assets	373	—
Total assets	7 199	—
Other non-current liabilities	812	—
Other current liabilities	125	—
Tax payable	51	—
Total liabilities	988	—
Net assets	6 211	—
Carrying value of equity accounted investment	2 753	—

1 Includes fair value adjustment on acquisition of investment.

On 29 June 2022 the group disposed of 30% of its investment in ROMPCO, retaining a 20% interest.

The carrying value of the investment represents the group’s interest in the net assets thereof.

Contingent liabilities

There were no contingent liabilities at 30 June 2022 and 30 June 2021 relating to our joint ventures or associates.

Accounting policies:

The financial results of associates and joint ventures are included in the group’s results according to the equity method from acquisition date until the disposal date. Associates and joint ventures whose financial year-ends are within three months of 30 June are included in the consolidated financial statements using their most recently audited financial results. Adjustments are made to the associates’ and joint ventures financial results for material transactions and events in the intervening period.