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SOL
SOL
SOL - Sasol - Expected Earnings for the Six Months Ending 31 December 2009
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/03)
ISIN: ZAE000006896 US8038663006
Share codes: JSE - SOL NYSE - SSL
("Sasol" or "the Company")
Sasol Limited: Expected Earnings for the Six Months Ending 31 December 2009
1. Introduction
Sasol`s financial results for the year ended 30 June 2009 were characterised
by the dramatic decline and volatility in oil and commodity prices. Headline
earnings per share for the first half of the 2009 financial year were at a
record high of R21,92 while the second six months realised only R3,50. Oil
prices and commodity prices experienced in the 2010 financial year to date are
much lower than the peak prices achieved in the prior year comparable period
and the earnings decline was further exacerbated by the negative impact of a
significantly stronger rand.
2. Expected earnings for the six months ending 31 December 2009
Sasol`s earnings per share and headline earnings per share for the six months
ending 31 December 2009 are estimated to decrease by at least 45% compared to
the prior year comparable reporting period. In terms of the JSE Limited
Listings Requirements, a trading statement is necessitated when there is
reasonable certainty that earnings will differ by at least twenty percent from
the prior comparable period. Due to continued volatility, Sasol is unable at
this time to give a more precise indication of how much this decrease will be,
but a more accurate estimate will be given once the half year has closed and
we have greater certainty. The expected decrease in earnings is mainly due to
the significant strengthening of the rand against the US dollar and a decrease
in average crude oil and product prices compared to the corresponding six
months of the previous reporting period.
In addition, our results may be impacted by further changes in the oil and
product prices, volume variances, the impact of a stronger rand on closing
financial assets and liabilities as well as any adjustments resulting from our
half year-end process. This may result in a change in the estimated earnings.
It is emphasised that this trading update deals only with the first half of
the 2009 financial year comparison. The very low earnings base of the second
half of the 2009 financial year will strongly influence a comparison of the
full 2010 financial year`s results with 2009 and guidance in this regard will
be given in due course.
3. Maintaining a strong cash position
Due to the cash conservation mode adopted by management during the volatile
economic climate, Sasol still has a positive cash position and a strong
balance sheet. Sasol continues to generate considerable cash flows, which keep
the group well-positioned in the current economic climate as well as meeting
all existing debt service requirements. Our focus remains on sustainable cost
containment and improving business operational efficiencies.
The overarching objective of our growth plans remains unchanged: 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.
4. CFO letter
On 3 December 2009, Sasol will post an update of its major capital projects,
as well as an operational review of Sasol Synfuels, through an update from the
Chief Financial Officer letter on its website (www.sasol.com).
Sasol`s financial results for the six months ending 31 December 2009 will be
announced on Monday, 8 March 2010.
The above information has not been reviewed or reported on by the Company`s
external auditors.
Johannesburg
3 December 2009
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Forward looking statements
We 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. There 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 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 annual report under
the Securities Exchange Act of 1934 on Form 20-F filed on 9 October 2009 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 Sasol does not undertake any obligation to update or revise any of them,
whether as a result of new information, future events or otherwise.
Date: 03/12/2009 13:00:03 Produced by the JSE SENS Department.
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