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Financial risk management and financial instruments (Tables)

12 Months Ended

Jun. 30, 2024

Financial risk management and financial instruments

Financial instruments

Carrying

Carrying

value

Fair value

value

Fair value

2024

2023

hierarchy

Financial instrument

Note

of inputs

Financial assets

At amortised cost

Long-term restricted cash⁶

1 709

1 447

Level 1¹

Long-term receivables

3 051

2 906

2 803

Level 3²

Trade and other receivables

31 272

30 915

Level 3³

Cash and cash equivalents

45 383

53 926

Level 1¹

At fair value through profit or loss

Long-term and short-term financial assets

3 978

2 225

Commodity and currency derivative assets

1 297

472

Level 2

Oxygen supply contract embedded derivative assets

508

516

Level 3

Other short-term investments

2 173

1 237

Level 1¹

Other long-term investments⁶

814

—

Level 1⁴

Designated at fair value through other comprehensive income

Investments in listed securities⁶

—

701

Level 1⁴

Investments in unlisted securities⁶

Level 3⁵

Financial liabilities

At amortised cost

Total long-term debt

117 031

113 315

124 068

116 533

Listed long-term debt (USD bonds)⁷

59 687

55 778

90 248

82 768

Level 1⁴

Listed long-term debt (ZAR bonds)⁷

4 530

4 453

2 106

2 079

Level 2⁴

Listed convertible bonds⁷

12 099

12 276

12 238

12 072

Level 3⁸

Unlisted long-term debt⁷

40 715

40 808

19 476

19 614

Level 3²

Lease liabilities⁹

17 437

16 297

Short-term debt and bank overdraft

687

238

Level 3³

Trade and other payables

32 551

35 118

Level 3³

At fair value through profit or loss

Long-term and short-term financial liabilities

619

3 397

Commodity and currency derivative liabilities

1 102

Level 2

Convertible bond embedded derivative liability

1 302

Level 3

Oxygen supply contract embedded derivative liabilities

542

993

Level 3

The carrying value of cash and other short-term investments is considered to reflect its fair value.

Determined with a discounted cash flow model using market related interest rates.

The fair value of these instruments approximates their carrying value, due to their short-term nature.

Based on quoted market price for the same instrument. The ZAR bonds have been classified as a level 2 fair value measurement due to the relatively low level of liquidity in the local debt market.

Determined using discounted cash flows modelling forecasted earnings, capital expenditure and debt cash flows of the underlying business, based on the forecasted assumptions of inflation, exchange rates, commodity prices and an appropriate WACC for the region.

Presented as part of Other long-term investments in the Statement of financial position.

Carrying value includes interest and unamortised loan costs.

The fair value of the amortised cost component of the US$ Convertible Bond is based on the quoted price of the instrument after separating the fair value of the derivative component.

Recognised under IFRS 16.

Schedule of external credit rating


	Credit rating
Agency	2024	2023
S&P	BB+ (stable)	BB+ (stable)
Moody’s	Ba1 (stable)	Ba2 (positive)

Schedule of expected credit losses recognised

12-month

Lifetime ECL

ECL

Significant

significant

increase in

Simplified

increase in

credit risk

approach

credit risk

Total

since initial

for trade

Credit-

Total lifetime

since initial

expected

recognition

receivables

impaired

ECL

recognition

credit loss

2024

Long-term receivables

—

132

156

Trade receivables

—

184

116

300

—

300

Other receivables

128

—

438

566

570

128

184

686

998

1 026


					12-month
	Lifetime ECL				ECL
					No
	Significant				significant
	increase in	Simplified			increase in
	credit risk	approach			credit risk	Total
	since initial	for trade	Credit-	Total lifetime	since initial	expected
	recognition	receivables	impaired	ECL	recognition	credit loss
	Rm	Rm	Rm	Rm	Rm	Rm
2023
Long-term receivables	—	—	49	49	62	111
Trade receivables	—	34	227	261	—	261
Other receivables	102	—	385	487	4	491
	102	34	661	797	66	863

Schedule of credit risk profile of financial assets at amortised cost


	2024			2023
	Low risk	Medium risk	High risk	Low risk	Medium risk	High risk
			CCC+ and			CCC+ and
	AAA to A-	BBB+ to B-	below	AAA to A-	BBB+ to B-	below
	%	%	%	%	%	%
Long-term receivables	19	77	4	29	59	12
Trade receivables	81	15	4	77	18	5
Other receivables	50	34	15	82	15	3
Cash and cash equivalents*	17	81	2	20	78	2

Includes long-term restricted cash.

Maturity profile of the undiscounted cash flows of derivative and non-derivative financial instruments

The maturity profile of the undiscounted contractual cash flows of financial instruments at 30 June were as follows:

Carrying

Contractual

Within one

One to

Three to

More than

amount

cash flows*

year

three years

five years

Note

2024

Financial assets

Non-derivative instruments

Long-term receivables

3 051

3 283

1 630

588

975

Trade and other receivables

31 272

—

Cash and cash equivalents

45 383

—

Investments through other comprehensive income

—

Long-term and short-term investments through profit or loss

2 987

—

Long-term restricted cash

1 709

—

1 709

84 411

84 643

79 741

1 630

588

2 684

Derivative instruments

Forward exchange contracts

711

22 090

—

Crude oil put options

279

—

Foreign exchange zero cost collars

302

—

Other commodity derivatives

—

Oxygen supply contract embedded derivative

508

822

138

477

86 216

108 141

102 486

1 768

726

3 161

Financial liabilities

Non-derivative instruments

Long-term debt**

(117 031)

(153 995)

(7 805)

(28 914)

(99 312)

(17 964)

Lease liabilities

(17 437)

(37 769)

(3 718)

(5 595)

(4 289)

(24 167)

Short-term debt

(566)

—

Trade and other payables

(32 551)

—

Bank overdraft

(121)

—

(167 706)

(225 002)

(44 761)

(34 509)

(103 601)

(42 131)

Derivative instruments

Forward exchange contracts

(11)

(21 390)

—

Other commodity derivatives

(7)

—

Oxygen supply contract embedded derivative

(542)

(3 654)

(34)

(35)

(3 599)

(168 266)

(250 053)

(66 192)

(34 544)

(103 587)

(45 730)

Contractual cash flows include interest payments.

The repayment of the notional amount of the convertible bonds is included in the one to three years category, in line with the contractual maturity date, based on obtaining the requisite shareholder approval for the convertible bonds to be settled in Sasol ordinary shares.


		Carrying	Contractual	Within one	One to	Three to	More than
		amount	cash flows*	year	three years	five years	five years
	Note	Rm	Rm	Rm	Rm	Rm	Rm
2023
Financial assets
Non-derivative instruments
Long-term receivables	17	2 803	3 105	—	1 119	273	1 713
Trade and other receivables	22	30 915	30 915	30 915	—	—	—
Cash and cash equivalents	25	53 926	53 926	53 926	—	—	—
Investments through other comprehensive income		713	713	713	—	—	—
Investments through profit or loss		1 237	1 237	1 237	—	—	—
Long-term restricted cash		1 447	1 447	—	—	—	1 447
		91 041	91 343	86 791	1 119	273	3 160
Derivative instruments
Forward exchange contracts		133	17 866	17 866	—	—	—
Crude oil put options		253	253	253	—	—	—
Foreign exchange zero cost collars		76	76	76	—	—	—
Other commodity derivatives		10	10	10	—	—	—
Oxygen supply contract embedded derivative		516	891	69	138	138	546
		92 029	110 439	105 065	1 257	411	3 706
Financial liabilities
Non-derivative instruments
Long-term debt**	13	(124 068)	(152 653)	(44 932)	(11 970)	(41 366)	(54 385)
Lease liabilities	14	(16 297)	(34 111)	(3 261)	(5 364)	(3 559)	(21 927)
Short-term debt	15	(79)	(79)	(79)	—	—	—
Trade and other payables	23	(35 118)	(35 118)	(35 118)	—	—	—
Bank overdraft	25	(159)	(159)	(159)	—	—	—
		(175 721)	(222 120)	(83 549)	(17 334)	(44 925)	(76 312)
Derivative instruments
Forward exchange contracts		(353)	(18 086)	(18 086)	—	—	—
Foreign exchange zero cost collars		(579)	(579)	(579)	—	—	—
Crude oil futures		(12)	(12)	(12)	—	—	—
Ethane swap options		(158)	(158)	(158)	—	—	—
Oxygen supply contract embedded derivative		(993)	(3 606)	(64)	(109)	(101)	(3 332)
		(177 816)	(244 561)	(102 448)	(17 443)	(45 026)	(79 644)

Contractual cash flows include interest payments.

The Long-term debt maturity analysis was revised to allocate the US$750 million convertible bond contractual cash flows to the earliest maturity period presented to reflect the counterparty call option which is exercisable at any time. Refer to note 1.1. An amount of R9,4 billion is included in the Contractual cash flows and within one year categories above. The prevailing conversion price at 1 July 2023, the date of the presumed conversion, was US$19,8595. Bondholders would realise a loss when exercising their conversion rights at this date given that the average share price traded significantly lower than the conversion price, and conversion at this date is therefore considered unlikely. Previously, the maturity analysis was presented on the basis that the convertible bond is repaid in accordance with its maturity date of November 2027. The amounts previously included in the maturity analysis relating to the convertible bond were as follows: R17,0 billion under Contractual cash flows, R0,6 billion under Within one year, R1,3 billion under One to three years and R15,1 billion under Three to five years.

Schedule of derivative transactions


	Financial	Financial	Financial	Financial
	asset	liability	asset	liability	Income statement gain/(loss)
	2024	2024	2023	2023	2024	2023	2022
	Rm	Rm	Rm	Rm	Rm	Rm	Rm
Commodity and currency derivatives
Interest rate swap options	—	—	—	—	—	—	1 029
Crude oil put options	279	—	253	—	(953)	(507)	—
Crude oil zero cost collars	—	—	—	—	—	3 953	(11 349)
Crude oil swap options	—	—	—	—	—	—	(5 140)
Crude oil futures	—	—	—	(12)	(180)	401	(1 049)
Ethane swap options	—	—	—	(158)	(17)	(272)	279
Coal swap options	—	—	—	—	—	1 099	691
Other commodity derivatives	5	(7)	10	—	(62)	180	(593)
Forward exchange contracts	711	(11)	133	(353)	1 091	(1 339)	(677)
Foreign exchange zero cost collars	302	—	76	(579)	810	(301)	(1 580)
Embedded derivatives
Convertible bond embedded derivative	—	(59)	—	(1 302)	1 233	867	—
Oxygen supply contract embedded derivatives*	508	(542)	516	(993)	442	(794)	64
Non-derivative financial instruments
Investments at fair value through profit or loss**	2 173	—	1 237	—	—	—	—
	3 978	(619)	2 225	(3 397)	2 364	3 287	(18 325)

Relates to a US dollar derivative that is embedded in long-term oxygen supply contracts to our SO.

Fair value gains and losses are presented in other operating income and expenses, separately from derivative gains and losses.


		Contract/Notional amount*					Average price
		Open	Settled	Open	Settled		Open	Open
		2024	2024	2023	2023		2024	2023
		Million	Million	Million	Million
Fair value hedges
Crude oil put options purchased**	barrels	16,8	18,0	16,3	—	US$/bbl	58,7	49,4
Crude oil zero cost collars	barrels	—	—	—	29,0	US$/bbl	—	—
Crude oil futures	US$	—	2	2	21	US$/bbl	—	75,0
Ethane swap options	barrels	—	3,6	3,6	1,3	US$ c/gal	—	30,1
Coal swaps	ton	—	—	—	0,9	US$/ton	—	—
Forward exchange contracts	US$	1 080	—	836	—	R/US$	18,90	18,61
Forward exchange contracts	EUR	43	—	30	—	US$/EUR	1,08	1,10
Foreign exchange zero cost collars	US$	1 530	—	2 760	4 400	R/US$ Floor	17,53	16,72
						R/US$ Cap	22,65	20,70

The notional amount is the sum of the absolute value of all contracts for both derivative assets and liabilities.

Total premium paid for contracts entered into in the year US$94,8 million (2023: US$42,0 million).

Oxygen supply contract embedded derivative assets and liabilities

Financial risk management and financial instruments

Summary of reconciliation of opening and closing balance of embedded derivative


	2024	2023
for the year ended 30 June	Rm	Rm
Balance at the beginning of the year	(477)	339
Amounts settled during the year	1	(22)
Unrealised fair value loss recognised in other operating expenses and income	442	(794)
Balance at the end of the year	(34)	(477)

Summary of sensitivities


			Increase/(decrease) in profit or
			loss and equity
	Inputs	Change	2024	2023
Input	applied	in input	Rm	Rm
Rand/US$ Spot price	R18,19/US$	+R1/US$	(478)	(478)
	(2023: R18,76/US$)	-R1/US$	478	478
US$ Swap curve	3,63% - 5,06%	+10bps	81	87
	(2023: 3,30% – 5,60%)	-10bps	(82)	(89)
Rand Swap curve	7,76% - 10,35%	+100bps	(688)	(734)
	(2023: 8,36% – 10,41%)	-100bps	784	848

Convertible bond embedded derivative liability

Financial risk management and financial instruments

Summary of reconciliation of opening and closing balance of embedded derivative


	2024	2023
for the year ended 30 June	Rm	Rm
Balance at the beginning of the year	1 302	—
Recognition of embedded derivative upon issue of bond	—	2 089
Unrealised fair value loss recognised in other operating expenses and income	(1 233)	(867)
Translation of foreign operations	(10)	80
Balance at the end of the year	59	1 302

Summary of sensitivities


				Increase/(decrease) in profit or
				loss and equity
	Inputs	Change		2024	2023
Input	applied	in input		Rm	Rm
Credit spread	372bps	+100bps		(364)	(433)
	(2023: 460bps)	-100bps*		59	455
Calibrated volatility	21,39%	+5	%	(81)	(377)
	(2023: 27,84%)	-5	%	45	364

Exchange rate

Financial risk management and financial instruments

Summary of sensitivities


	2024		2023
	Euro	US dollar	Euro	US dollar
	Rm	Rm	Rm	Rm
Equity	171	2 740	75	1 209
Income statement	171	2 740	75	1 209

Schedule of foreign exchange rates


	Average rate		Closing rate
	2024	2023	2024	2023
	Rand	Rand	Rand	Rand
Rand/Euro	20,24	18,62	19,49	20,55
Rand/US$	18,71	17,77	18,19	18,83

Schedules of information related to foreign currency risk and commodity price risk


	2024		2023
	Euro	US dollar	Euro	US dollar
	Rm	Rm	Rm	Rm
Long-term receivables	67	745	—	339
Trade and other receivables	564	2 595	544	3 520
Cash and cash equivalents	3 319	1 241	2 835	1 872
Net exposure on assets	3 950	4 581	3 379	5 731
Trade and other payables	(227)	(2 949)	(302)	(2 129)
Net exposure on liabilities	(227)	(2 949)	(302)	(2 129)
Exposure on external balances	3 723	1 632	3 077	3 602
Net exposure on balances between Group companies¹	(2 014)	25 769	(2 323)	8 484
Total net exposure	1 709	27 401	754	12 086

The US$ exposure relates to cash deposits made by Sasol Financing Limited to Sasol Financing International Limited.

Interest rate risk

Financial risk management and financial instruments

Summary of sensitivities


	Income statement — 1% increase
			United States
	South Africa	Europe	of America	Other
	Rm	Rm	Rm	Rm
30 June 2024	250	32	(328)	21
30 June 2023	300	28	(63)	26

Summary of interest rate profile of interest-bearing financial instruments including the effect of the interest rate swap


	Carrying value
	2024	2023
	Rm	Rm
Variable rate instruments
Financial assets	42 053	50 123
Financial liabilities¹	(44 471)	(20 911)
	(2 418)	29 212
Fixed rate instruments
Financial assets	7 046	7 005
Financial liabilities²	(72 680)	(103 317)
	(65 634)	(96 312)
Interest profile (variable: fixed rate as a percentage of total financial assets)	86:14	88:12
Interest profile (variable: fixed rate as a percentage of total financial liabilities)	38:62	17:83

The increase in variable exposure is mainly due to the draw down on the RCF. Refer to note 13.

The decrease in fixed exposure is mainly due to the repayment of a US$1,5 billion fixed-rate bond during the period.

Commodity price risk - crude oil

Financial risk management and financial instruments

Schedules of information related to foreign currency risk and commodity price risk


	Dated Brent Crude
	2024	2023
	US$	US$
High	97,92	124,79
Average	84,74	87,34
Low	73,56	71,70