• Solid operational performance across most of the value chain

  • Record production volumes at Secunda Synfuels Operations

  • Normalised sales volumes
    • Performance Chemicals up 1,8%, Base Chemicals down 2,6%
    • Liquid fuels remained flat, 2% up on market guidance
  • Business Performance Enhancement Programme delivered
    • Sustainable actual cost savings of R4,5bn
    • Updated target exit run rate of R5,4bn by 2018
  • Response Plan cash savings exceeding expectations
    R28bn cash savings delivered for the year
    R12bn above 2016 target
    • Updated sustainable savings target to R2,5bn by 2019, up R1bn
  • Lake Charles Chemicals Project 50% complete
    • Addressing challenges with project execution
    • Significantly sharpened focus on cost and schedule delivery, following the
    increase in project cost to US$11bn
  • Headline earnings per share down 17% to R41,40, despite an average 25% decline in Rand oil prices

Joint Presidents and Chief Executive Officers,
Bongani Nqwababa and Stephen Cornell say:

“We are excited to be taking over as Sasol’s Joint Presidents and Chief Executive Officers. We have been working together over the last six months to clearly define how we will lead Sasol, address the challenges the company is facing and pursue the exciting opportunities ahead.

Sasol’s global operations continue to perform well, with our Secunda Operations reporting record production volumes. Our cost reduction and cash savings initiatives are exceeding their targets, which places us on a sound footing as we gear up our balance sheet to complete the world-scale, company-changing investment in Louisiana in the US.

Although the capital expenditure for our Lake Charles Chemicals Project has increased, we remain confident that the fundamental drivers for this investment are sound. The cost and schedule review process, which was completed in August 2016, has set a solid platform for the continued execution of this project. In Mozambique, we continue to advance our growth projects to further develop our footprint in that region. We look forward to building on Sasol’s past successes, as we lead the company forward and continue to grow in both Southern Africa and North America.

In the medium-term, we will continue to focus on pursuing zero harm, building a resilient organisation for the future, nurturing our foundation businesses, delivering sustainable growth and clarifying our future investment opportunities.”

Safety Recordable Case Rate (RCR),
excluding illnesses, improved to

0,29

regrettably two fatalities*

Normalised cash fixed costs down

8,1%

in real terms

 

Liquid fuels
BEE partner,
Tshwarisano,
investment now
fully unencumbered

Direct and indirect taxes paid to South
African Government

R36,8 billion