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SOL
SOL
SOL - Sasol Limited - Trading Statement
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
ISIN: ZAE000006896 US8038663006
Share codes: JSE - SOL NYSE - SASOL
("Sasol" or "the Company")
TRADING STATEMENT
EXPECTED EARNINGS PER SHARE FOR THE FINANCIAL YEAR ENDING 30 JUNE 2009 TO
DECREASE BY BETWEEN 40% AND 50% COMPARED TO THE PRIOR YEAR
Introduction
At the announcement of our interim results on 9 March 2009, we 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.
Earnings outlook for full year 2009
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. Our 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 our year-end process. This may result in a change in the
estimated earnings.
Positive cash position and a strong balance sheet position the group well
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 our growth programme.
Growth plans remain unchanged keeping our shareholder value proposition intact
The overarching objective of our growth plans remains unchanged, keeping our
shareholder value proposition intact: to ensure prudent management of our
resources while pursuing those projects and programmes that are in the best
interests of our shareholders and other valued stakeholders. Therefore we have
reprioritised our 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.
Johannesburg
19 June 2009
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Sasol may, in this document, make statements that are not historical facts and
relate to analyses and other information based on forecasts of future results
and estimates of amounts not yet determinable. These are forward-looking
statements as defined in the U.S. Private Securities Litigation Reform Act of
1995. Words such as "believe", "anticipate", "expect", "intend", "seek", "will",
"plan", "could", "may", "endeavour" and "project" and similar expressions are
intended to identify such forward-looking statements, but are not the exclusive
means of identifying such statements.
By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and there are risks that predictions,
forecasts, projections and other forward-looking statements will not be
achieved. If one or more of these risks materialize, or should underlying
assumptions prove incorrect, actual results may be very different from those
anticipated. The factors that could cause our actual results to differ
materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements are discussed more fully in our
registration statement under the Securities Exchange Act of 1934 on Form 20-F
filed on October 7, 2008 and in other filings with the United States Securities
and Exchange Commission. Forward-looking statements apply only as of the date on
which they are made, and we do not undertake any obligation to update or revise
any of them, whether as a result of new information, future events or otherwise.
Date: 19/06/2009 08:55:30 Produced by the JSE SENS Department.
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