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Sasol -- hedges 16.425m barrels of oil
Sasol has entered into hedging transactions (zero cost collars) for 16.425 million barrels of oil (equivalent to about 30% of its planned South African synfuels production) for the remainder of the 2009 financial year. The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below USD90/ bbl (put level) on the hedged portion of synfuels production. Conversely, Sasol will incur opportunity losses on the hedged portion of production should monthly average oil prices exceed a volume weighted average USD228/bbl (call level). The hedge has been executed over a four week period (commencing at the beginning of the new financial year, 1 July 2008) and due to the volatility of the oil price, call levels between USD195/bbl and USD253/bbl were attained.
Similar to the synfuels hedge Sasol also entered into zero cost collars for 550 000 barrels of oil for its Sasol Petroleum International`s West African crude oil output (representing about 30% of planned net output for financial year 2009). The levels attained were a put level of USD90/bbl and a call level of USD240/bbl.
Sasol considers oil price hedging on an annual basis as part of its risk management activity. In the light of very volatile oil prices, Sasol believes that the hedge that has been entered into will mitigate the risk of any substantial fall in oil prices.
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Sasol -- change to the board
Sasol announces the resignation of its non-executive director, Mr Sam Montsi with effect from 1 August 2008.
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