|
|
Sasol publishes CFO newsletter on its website
Sasol has published a newsletter from its CFO - Christine Ramon - aimed at the investment community, on its website. The newsletter includes a brief project update to the market following on the trading statement issued on 19 June 2009.
|
|
Click here for original article
|
| |
Sasol -- trading statement
At the announcement of the group's interim results on 9 March 2009, management expected a reduction in earnings for the full 2009 financial year compared to the 2008 financial year. It was clear at that stage that the considerably lower prices would far outweigh the positive effects of production volume increases and the crude oil hedge. At the time the volatility and uncertainty of global markets made it difficult to be more precise in this interim results outlook statement.
Sasol's attributable earnings per share and headline earnings per share for the year ending 30 June 2009 are estimated to decrease by between 40% and 50% compared to the prior year. The expected decrease in earnings is mainly due to the lower crude oil and chemical prices referred to above, together with a considerable reduction in refining margins and a further deterioration in chemical markets. This earnings guidance includes the impact of the non-cash charges relating to the Sasol Inzalo BEE transaction and the administrative penalties paid to the European Commission and the South African Competition Commission. Overall group production volumes are up mainly due to increased production volumes at the Oryx GTL plant and the additional production volumes at the Arya Sasol Polymers plant. The Synfuels operations in Secunda, South Africa, are expecting production volumes to be about 4% lower than last year. The overall deterioration in market conditions will also result in negative stock effects, net realisable value stock write-downs and impairments. Several assumptions have been made in estimating the expected earnings for the full financial year 2009. These assumptions are based on the best information currently available. Sasol's results may be further impacted by changes in the oil and product prices, the impact of a much stronger rand on closing financial assets and liabilities, additional impairments as well as any adjustments resulting from the group's year-end process. This may result in a change in the estimated earnings.
Sasol has a positive cash position and a strong balance sheet. The cash conservation approach has ensured that Sasol continues to generate considerable cash flows, which keep the group well-positioned in the current economic climate, and fund its growth programme.
The overarching objective of Sasol's growth plans remains unchanged, keeping the group's shareholder value proposition intact to ensure prudent management of the group's resources while pursuing those projects and programmes that are in the best interests of shareholders and other valued stakeholders. Therefore management have reprioritised the group's planned capital expenditure to R16 billion for 2009 in light of the changed market conditions, including assessing the opportunities that the current environment presents. Sasol's financial results for the year ending 30 June 2009 will be announced on Monday, 14 September 2009. The above information has not been reviewed or reported on by the company's auditors.
|
|
Click here for original article
|
| |
Changing Sasol's business culture will not be easy
With the plethora of fines that Sasol has had to face since 2008, the Financial Mail says it will not be easy to change Sasol's business culture. I response to the R3.7 billion fine that was placed on it by the European Commission for price fixing by its German wax business and the R250 million fine that was levied in May 2009 by the South African competition tribunal, CEO Pat Davies, has initiated an extensive review of Sasol's businesses in an attempt to expunge bad practices. Davies still insists that he had no idea of the irregularities for which Sasol has been fined for and that "there was no hint that bending laws was OK". The CEO also thinks that the company has already made some progress on improving it business culture, but some have already questioned whether he is the right man to tackle these issues since he has been with the company since 1975, and may be too embedded in Sasol's culture, despite never been involved in the sales side where the problems seem to be.
|
| |
| |
|
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
| |
|
|
