|
|
Sasol - hedging of financial risks
Sasol has a board-approved policy with respect to hedging of financial risks, which allows the company to mitigate specific risks and provide protection against unforeseen movements in interest rates, currency movements, commodity and final product prices.
During the course of the 2017 financial year, Sasol has entered into a number of hedges to mitigate specific financial risks. In particular, it has entered into hedges against the downside risk in the crude oil price to increase the stability and predictability of our cash flows.
Sasol has entered into oil put options, for the second quarter of the financial year ending 30 June 2017 (October 2016 to December 2016), which provide the company with an average Brent crude oil price floor of USD48.68 per barrel (net of costs) for approximately 7.6 million barrels. Sasol has also entered into put options for quarter three and a part of quarter four of financial year 2017 which provide the company with an average Brent crude oil price floor of USD47.06 per barrel (net of costs) for approximately 16.8 million barrels.
Sasol is currently reviewing other commodity and currency hedges and should it enter into material hedges, an appropriate announcement will be made.
|
|
Click here for original article
|
| |
| |
|
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
| |
|
|
