|
Sasol Limited - Sasol announces hedging in respect of its exposure to the oil
price
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
(ISIN: ZAE000006896)
Share codes:
JSE - SOL
NYSE - SSL
(`Sasol`)
Sasol announces hedging in respect of its exposure to the oil price
Sasol announces that due to continuing volatility in oil markets and considering
its capital expenditure plans and the merits of improving the stability of its
cash flows, it has for its financial year which started 1 July 2005, entered
into hedging transactions (zero cost collars) for 45 000 barrels of oil (dated
Brent) per day (equivalent to approximately 30% of its synfuels production). In
terms of this hedge Sasol will be protected, should monthly average oil prices
decrease below $45,00 per barrel on the hedged portion of production, and
conversely Sasol will incur opportunity losses on the hedged portion of
production should monthly average oil prices exceed US$82,61 per barrel.
This follows Sasol`s announcement in May 2004 that it had embarked on a modest
hedging programme in respect of its exposure to the oil price, with the
objective of improving the stability of its cash flows in light of its capital
expenditure plans for its financial year that commenced on 1 July 2004. That
programme was concluded in May 2005. Sasol announced at the time that going
forward it intended to review the merits of hedging a portion of its synfuels
production each financial year.
Appropriate disclosure of this hedging will also be made in our 2005 annual
report and Form 20-F.
Johannesburg
7 July 2005
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. 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 annual report under the Securities Exchange Act of 1934 on Form 20-
F filed on October 29, 2004 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: 07/07/2005 04:50:25 PM
Produced by the JSE SENS Department
|
|
