Reviewed interim financial results for the six months ended 31 December 2015
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
("Sasol" or "the Company")
MAINTAINING MOMENTUM
Reviewed interim financial results for the six months ended 31 December 2015
Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of
our 30 400 people working in 36 countries. We develop and commercialise technologies, and build and operate
world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals
and low-carbon electricity.
Salient features
- Strong operational performance across most of the value chain
- Secunda Synfuels Operations production volumes up 3%
- 4% increase in total liquid fuels production volumes in our Energy Business
- Normalised cash fixed costs down 8,4% in real terms
- Headline earnings per share down 24% to R24,28 despite a 47% decline in oil price
- Business Performance Enhancement Programme delivered sustainable actual cost savings of R3,1bn and updated
target exit run rate of R5bn by end of financial year 2017
- Response Plan savings of R10,8bn delivered for half year. Target increased to deliver cash savings of between
R65bn and R75bn by financial year 2018, given current market volatility
- Lake Charles Chemicals Project progressing. Reviewing execution to support Response Plan efforts
- Safety Recordable Case Rate (RCR), excluding illnesses, remained stable at 0,32
Segment report
for the period ended
Turnover Profit/(loss) from operations
R million R million
Full year Half year Half year Half year Half year Full year
30 Jun 15 31 Dec 14 31 Dec 15 31 Dec 15 31 Dec 14 30 Jun 15
Audited Reviewed Reviewed Segment analysis Reviewed Reviewed Audited
20 859 10 623 10 625 Operating Business Units (5 930) 493 1 173
15 687 7 817 8 351 Mining 2 359 2 241 4 343
5 172 2 806 2 274 Exploration and Production (8 289) (1 748) (3 170)
International
187 312 101 211 84 507 Strategic Business Units 18 600 28 001 45 448
75 800 41 860 32 991 Energy 10 261 14 818 22 526
39 728 21 387 16 938 Base Chemicals 3 178 5 818 10 208
71 784 37 964 34 578 Performance Chemicals 5 161 7 365 12 714
221 176 49 Group Functions 2 246 1 540 (72)
208 392 112 010 95 181 14 916 30 034 46 549
(23 126) (12 173) (10 706) Intersegmental turnover
185 266 99 837 84 475
Overview*
Steering through volatile markets
We continued to maintain momentum by focusing on factors within our control, and delivered a strong set of
production volumes across most of the value chain, despite the turbulent macroeconomic environment.
The first half of the 2016 financial year was characterised by a further steep decline in international oil
and commodity chemical prices, driven mainly by global economic uncertainty in certain key markets and
softer demand. Oil prices decreased by 47%, given oil supply concerns and a lack of clear signals from the
Organisation of the Petroleum Exporting Countries in rebalancing the global oil market. Commodity chemical
prices were also lower due to depressed oil prices and poor demand in some key markets. The average
basket of commodity chemical prices, however, only decreased by 23% in comparison to the 47% decrease
in oil prices. Margins for speciality chemicals remained resilient, despite ongoing market volatility. The rand/
US dollar exchange rate, on the other hand, weakened by 24% due to negative market sentiment over the
South African economy and dollar strength compared to most emerging market currencies. The weaker rand
provided a partial buffer against lower oil and commodity chemical prices.
Importantly, we also achieved much higher sustainable cost savings than forecasted from our Business Performance
Enhancement Programme (BPEP). Our low oil price Response Plan (RP) achieved actual cash conservation
benefits ahead of our internal targets. We have updated the scope and extended our RP targets through to the
2018 financial year in anticipation of a lower oil price environment.
Maintaining momentum
President and Chief Executive Officer, David E. Constable says:
"The decisive actions taken to reposition Sasol through our Business Performance Enhancement Programme,
and our low oil price Response Plan, place the organisation in a good position to maintain a strong
operational performance, despite the challenging and volatile energy landscape. Given a 'lower-for-much-
longer' oil price scenario, we have intensified and extended the scope of our Response Plan, by derisking and
rephasing certain projects, while prioritising capital for the advancement of our growth projects in Southern
Africa and the United States (US).
Over the next three months, my successors and I will continue to work through a detailed handover plan to
ensure a smooth leadership transition. I would like to extend my sincere appreciation to my Sasol colleagues,
the members of the Sasol Limited Board and our business partners who, through their performance,
dedication and commitment, have ensured that we continue to deliver shareholder value for the benefit of all
our stakeholders."
Financial results overview
Earnings attributable to shareholders for the six months ended 31 December 2015 decreased by 63% to
R7,3 billion from R19,5 billion in the prior period. Headline earnings per share (HEPS) decreased by 24% to
R24,28, and earnings per share (EPS) decreased by 63% to R11,97 compared to the prior period.
Profit from operations of R14,9 billion decreased by 50%, compared to the prior period on the back of
challenging and highly volatile global markets. Average Brent crude oil prices moved dramatically lower
by 47% compared to the prior period (average dated Brent was US$47 per barrel (/b) for the six months
ended 31 December 2015 compared to US$89/b in the prior period). Furthermore, the price of our basket
of commodity chemical prices declined by 23% compared to the prior period. The impact of lower oil
and commodity chemical prices was partly offset by a 24% weaker average rand/US dollar exchange rate
(R13,62/US$ for the six months ended 31 December 2015 compared with R10,99/US$ in the prior period).
The average margin for our speciality chemicals remained resilient compared to the prior period.
Despite the challenging macroeconomic environment, we continued to deliver a strong operational
performance, with increased production volumes and cost increases contained to well below inflation.
The highlights of our operational performance can be summarised as follows:
- Secunda Synfuels Operations (SSO) production volumes increased by 3% (1 million barrels) compared to
the prior period;
- Total liquid fuels production for the Energy Business increased by 4% (1,1 million barrels) compared to the
prior period, as a result of a higher portion of SSO's volumes being utilised by the Energy Business;
- The ORYX GTL facility continued to deliver a solid performance, with an average utilisation rate of 90% for
the period;
- Secunda Chemicals and Sasolburg Operations' production volumes remained in line with the prior period.
The increase in volumes from our Fischer-Tropsch Wax Expansion Project (FTWEP) was offset by lower
polypropylene (C3) volumes, due to planned commissioning activities associated with the C3 Expansion
Project;
- Sales volumes for the Base Chemicals Business decreased by 13%, given lower C3 volumes available as
a result of the commissioning of the C3 Expansion Project and softer demand for certain commodity
chemical products; and
- Sales volumes from our Performance Chemicals Business, normalised for the planned shutdown at our
ethylene plant in North America, remained consistent with the prior period.
In addition, Sasol's profitability was further impacted by the following notable once-off and significant items:
- net remeasurement items expense of R7,6 billion compared to a R0,2 billion expense in the prior
period. These items relate mainly to a partial impairment of our share in the Montney shale gas asset
of R7,4 billion (CAD665 million), due to a further deterioration of conditions in the North American gas
market resulting in a 16% decline in forecasted natural gas prices. The impairment reduces the carrying
value of the asset to approximately CAD559 million. This asset remains highly sensitive to changes in
the gas price and accordingly, we estimate that a 5% change in the gas price may result in a change of
CAD255 million (approximately R2,9 billion) in the recoverable amount of the asset;
- a cash-settled share-based payment charge to the income statement of R0,4 billion compared to a credit
of R2,9 billion in the prior period; and
- the reversal of a provision of R2,3 billion (US$166 million) based on a favourable ruling received from the
Tax Appeal Tribunal in Nigeria relating to the Escravos Gas-to-Liquids (EGTL) investment. The Nigerian
Federal Inland Revenue Service has appealed the decision. The outcome of the appeal process is uncertain,
and a possible obligation may arise as a result of any future proceedings. At this time, the value of any
potential future obligation cannot be reasonably estimated.
We continued to drive our cost containment programme and reduced our cash fixed costs by 4,5% in nominal
terms compared to the prior period. Excluding the impact of inflation, exchange rates and once-off costs, our
cash fixed costs reduced by an exceptional 8,4%. This was achieved by an accelerated sustainable delivery of
our BPEP and RP programmes.
Our company-wide BPEP, which is aimed at delivering sustainable cost savings of R4,3 billion by the end of the
2016 financial year, is nearing its completion. We delivered actual cost savings up to 31 December 2015
of R3,1 billion, which are on track to meet our savings target forecast of R4,0 billion, at an annual
exit run rate of R4,3 billion by the end of financial year 2016. Implementation costs amounted to R132 million
for the period compared to R1,9 billion for the 2015 financial year. Given an ongoing low oil price
environment, we have revised our BPEP savings target to achieve sustainable savings at an exit run rate of
R5 billion by the end of the 2017 financial year. Cost trends are still forecast to track SA PPI from the
2017 financial year.
Our comprehensive RP, focusing on cash conservation to counter the lower-for-longer oil price environment,
has continued to yield positive cash savings in line with our 2016 financial year targets, despite margin
contraction and difficulties in placing product in the market. The RP realised R10,8 billion in cash savings for
the period, and we anticipate achieving the upper end of our 2016 financial year guided range of R10 billion
to R16 billion. The RP places Sasol in a strong position to operate profitably within a US$45-50/b oil price
environment. However, against the backdrop of a US$30/b oil price, we updated and extended the scope
of the RP to run through at least to the end of the 2018 financial year, ensuring continued balance sheet
strength and earnings resilience at notably lower oil price scenarios. We also increased the cash savings
target range from R30 billion to R50 billion to between R65 billion and R75 billion. Most of the benefits will
be delivered from the existing RP work streams. In addition, we expect our sustainable cash cost savings to
increase to R1,5 billion by the 2019 financial year, up R500 million from the previous guidance.
Our full time equivalent sustainable headcount reduction as a result of the BPEP amounts to approximately 9,2%
or 3 092 employees through voluntary separations, voluntary early retirements and natural attrition, and nearly
23% or 13 000 service provider employees. Implementation of the RP has also resulted in headcount reductions,
not all of which will be sustainable in the longer term, from organisational structure refinements and the freezing
of non-critical vacancies. These reductions amount to approximately an additional 5,3% or 1 798 employees,
which amounts to a total headcount reduction of 14,3% or 4 900 full time equivalents.
The increase in the effective corporate tax rate from 31,8% to 43,1% was mainly as a result of the R7,4 billion
(CAD665 million) partial impairment of our Canadian shale gas assets, partly offset by the reversal of a
provision of R2,3 billion (US$166 million) based on a favourable ruling received from the Tax Appeal Tribunal in
Nigeria relating to the EGTL Project. The normalised effective tax rate of 32,9% increased by 0,3% compared
to the prior period. The approval of the Production Sharing Agreement (PSA) in Mozambique will have a
positive impact on our effective tax rate; however, the amount will be dependent on the gas price. A lower
gas price will result in fewer reserves being recognised and a decrease in future taxable income. The impact of
the PSA Project will be confirmed in our year-end results, since the approval was only granted after the half
year-end close.
Cash generated by operating activities decreased by 21% to R26,7 billion compared with R34,0 billion in the prior
period. Despite reduced cash flows, our balance sheet has the capacity to lever up as we continue to execute our
growth plans and return value to shareholders. To manage the volatility and a 'lower-for-much-longer' oil price
environment, the Sasol Limited board of directors (Board) temporarily lifted our internal gearing ceiling to 44%
until the end of the 2018 financial year.
Our assets and liabilities were significantly impacted by the weaker average rand/US dollar exchange rate, resulting
in higher than expected translation differences. Actual capital expenditure during the period amounted to R33,6 billion.
Loans raised during the period amounted to R19,2 billion, mainly for the funding of the Lake Charles Chemicals Project.
Our net cash position increased by 15%, from R53 billion in June 2015 to R61 billion as at 31 December 2015, driven
largely by our cash conservation initiatives and the favourable impact of the rand/US dollar translation effects.
Our dividend policy is a dividend cover range based on HEPS. Taking into account the current volatile
macroeconomic environment, capital investment plans, our cash conservation initiative, the current strength
of our balance sheet, and the dividend cover range, the Board has declared an interim dividend of R5,70 per
share (18,6% lower compared to the prior period). The interim dividend cover was 4,3 times at 31 December 2015
(31 December 2014: 4,6 times).
* All comparisons refer to the prior period for the six months ended 31 December 2014. Except for earnings
attributable to shareholders and the RP cash conservation measures, all numbers are quoted on a pre-tax basis.
Strong operational performance supported by continued effective cost management
Operating Business Units
Mining – stable operations with cash unit costs below inflation
Profit from operations increased by 5% to R2 359 million compared to the prior period, mainly as a result of
meaningful contributions from the BPEP and RP levers, and stable mining operations. Normalised mining unit
costs of production were contained to 4% below inflation. Export coal volumes remained flat and this market
continued to benefit from the weaker rand/US dollar exchange rate, which was partially negated by lower
dollar-based coal prices.
Exploration and Production International – negatively impacted by low oil and gas prices
Exploration and Production International (E&PI) recorded a loss from operations of R8 289 million compared
to a loss from operations of R1 748 million in the prior period. Excluding the partial impairment of our
Canadian shale gas operations of R7 436 million (CAD665 million), our E&PI businesses recorded a loss of
R853 million.
Our Mozambican operations recorded a profit of R437 million compared to R930 million in the prior
period. The decrease mainly relates to translation losses of R608 million. Production volumes increased by
8% as a result of our efforts to debottleneck the production facility, coupled with a full volume offtake by our
joint electricity operations in Mozambique. The lower oil price had a significant impact on our Gabon assets
resulting in a loss of R512 million compared to R1 144 million in the prior period, which included the partial
impairment of the asset of R1 331 million. Oil production in Gabon was 26% higher than the prior period and
averaged 19 100 barrels of oil per day.
Our Canadian shale gas assets generated a loss from operations of R7 769 million, including an impairment
of R7 436 million. Excluding the effect of the impairment, the loss decreased to R333 million compared to
R584 million in the prior period, mainly due to a lower depreciation rate. Our Canadian gas volumes were
lower compared to the prior period due to reduced development activities, driven by lower oil and gas prices.
Despite the impact of lower gas prices and weaker oil prices affecting the profitability of the business, E&PI
were able to contribute more than R2,7 billion to Sasol's cash conservation initiatives during the current
period through reduced capital cash flow, a cutback in exploration activities and increased cash fixed cost
savings. As a result of the 'lower-for-much-longer' oil and gas prices, further cash conservation initiatives are
being considered and will be communicated to the market once confirmed.
Strategic Business Units
Energy – record production volumes and solid cost performance while margins under some pressure
Profit from operations of R10 261 million decreased by R4 557 million or 31% compared to the prior
period despite a 47% decrease in oil prices. Operating margins held firm at 31%, mainly as a result of record
production levels, favourable product differentials and contributions from the BPEP and RP initiatives.
Normalised cash fixed costs remained flat in nominal terms.
In Southern Africa, our Energy Strategic Business Unit's (SBU) profitability was enhanced by a 6% increase
in refined product volumes from SSO and a 1% increase in production volumes from our Natref operations
compared with the prior period. A weaker rand/US dollar exchange rate and higher refining margins further
mitigated the impact of the 47% decrease in oil prices for the period under review. Sales volumes, on the
other hand, decreased by 1% on the back of difficult market and trading conditions experienced in December
2015, driven by lower demand for liquid fuels in Southern Africa. Lower working capital levels are forecast by
the end of the 2016 financial year.
Gas sales were 3% higher compared to the prior period, mainly due to higher methane-rich gas sales to
commercial customers. Our share of the Central Térmica de Ressano Garcia joint operation in Mozambique
delivered 327 858 megawatt-hours of electricity.
The Energy SBU's share of profit from equity accounted investments of R409 million was R887 million
or 68% lower than in the prior period. This was primarily due to lower oil prices for the period. The ORYX
GTL plant achieved an average utilisation rate of 90%, while maintaining a world class safety RCR of 0,0.
In Nigeria, the EGTL plant continues to steadily ramp up towards design capacity.
In light of the current economic environment, in February 2016, we decided to review our long-term strategic
interest in the Uzbekistan GTL investment. The review is expected to be completed in the second half
of the 2016 financial year.
Base Chemicals – margin pressure partly relieved by a solid cost performance
Profit from operations decreased by 45% to R3 178 million compared to the prior period and the operating
margin decreased by 8% to 19%. Sales volumes were down by 13% as a result of an extended planned
shutdown to enable commissioning activities associated with the C3 Expansion Project, as well as softer
demand for certain commodity chemical products. A 23% decrease in our basket of commodity chemical
prices was partly negated by the weaker rand/US dollar exchange rate. Cash fixed costs decreased by 11%
in nominal terms, mainly as a result of significant benefits achieved from the BPEP and RP initiatives and a
refinement of our cost transfer allocation methodology between SBUs.
Performance Chemicals – normalised sales volumes flat coupled with resilient average gross margins
Profit from operations of R5 161 million decreased by 30% compared to the prior period mainly as a result of
the R1 336 million FTWEP impairment reversal in the prior period. Our operating margin was under pressure
due to depreciation being recognised on FTWEP for the full period, while the project is still ramping up to
full production. Profit from operations on a normalised basis decreased by 15%. This decrease is largely as
a result of lower US ethylene prices which negatively impacted the profitability of our assets in the US. Our
margins in the surfactant and alcohol business, however, remained very resilient when compared to the crude
oil price over the same period. Production volumes in our Eurasian Operations increased by 5% while our US
Operations reported a 12% decrease in production as a result of a planned shutdown. Total sales volumes
decreased marginally by 1% compared to the prior period, as a result of reduced demand for oilfield chemicals
and the planned shutdown at our ethylene plant in North America. Normalised cash fixed costs were
maintained well below inflation as a result of BPEP and RP activities.
Advancing projects to enable future growth
We are encouraged by the headway we are making in delivering on our project pipeline:
- Focusing on our Operating Business Units (OBUs) which secure our feedstock supply:
– The establishment of the Impumelelo and Shondoni collieries, which are part of our Mining OBU's
R14,0 billion mine replacement programme, will ensure uninterrupted coal supply to SSO. The
Impumelelo colliery achieved beneficial operation (BO) during October 2015, within budget, despite
various project delays. The development of the Shondoni colliery continues to progress steadily and
we expect to achieve BO, within budget, during the first half of the 2016 calendar year.
– In January 2016, we obtained approval from the Mozambique Council of Ministers for a Field
Development Plan that will see further hydrocarbon resources developed to support our Southern
Africa growth drivers. The first phase of the PSA licence area development proposes an integrated
oil, liquefied petroleum gas (LPG) and gas project adjacent to the Petroleum Production Agreement
area. To expand our operations in Mozambique, we also received approval from the Government of
Mozambique, in January 2016, to develop a fifth train at the Central Processing Facility to process
additional gas from the PSA licence area. The total project cost for tranche one of the first phase of the
PSA licence area and the fifth train is estimated at US$1,4 billion.
- Progressing our growth projects within our Strategic Business Units (SBUs):
Expanding our asset base in South Africa
– The R14,2 billion Secunda growth programme is nearing completion with 17 of the 19 projects achieving
BO. The completed projects ensured the full realisation of the envisaged volume and electricity
benefits. The remaining two projects are smaller environmental enablers and are expected to reach BO
during the first half of the 2016 calendar year.
– The expansion of our wax facility in Sasolburg is progressing well, with phase one achieving BO during
May 2015. BO for phase two is on track to take place during the first half of the 2017 calendar year. The
total project cost for both phases remains unchanged at R13,6 billion.
Growing our interest in Mozambique
– The final investment decision was taken to progress with the R2,7 billion Loop Line 2 Project on the
Mozambique to Secunda pipeline, during August 2015. This will increase gas transportation capacity
from 169,4 bscf to 191 bscf. BO is expected to be reached during the second half of the 2016 calendar
year.
Growing our footprint in North America
– The Lake Charles Chemicals Project (LCCP) is progressing. The engineering and procurement are at an advanced stage
and site construction, mostly civil related, has fully commenced. We had some initial challenges associated with
ground work due to the very heavy rainfall in 2015 and the regulatory need to relocate a small waterway. Cost control
remains a primary focus for the team. Given the uncertain economic environment, we have taken a decision to pace the
execution of the LCCP to support the Response Plan. This shift in schedule will also give us the opportunity to further
optimise field efficiency. Our current view is that BO of some smaller derivative units will move into calendar year 2019
and the overall end-of-job project cost estimate will remain under pressure. A detailed review of the project cost and
schedule is underway and likely to be completed by mid-calendar year 2016.
– Construction of our 50% joint venture high-density polyethylene plant with Ineos Olefins &
Polymers USA continues to make good progress, and is on track for completion in the second half of the 2016
calendar year. Upon completion, the plant will be the largest HDPE manufacturing facility in the US and
is expected to produce 470 kilotons annually. We continue to work with our joint venture partner to
manage cost pressures as our initial estimates indicate a possible 5% to 10% increase to the original
end-of-job cost.
– In response to the lower gas market price, we have agreed with our partner, Progress Energy, to reduce
drilling activities and capital expenditure in Canada. In terms of the annual work programme, we
expect to spend CAD382 million in the next calendar year, of which CAD161 million relates to the carry
obligation. Further evaluation is currently underway with the optimisation of the capital spend being
considered.
Maintaining our focus on sustainable value creation
We continued to deliver on our broader sustainability and community contributions during the period:
- Safety remains a top priority for Sasol. Our operations continue to make steady progress in the reduction
of process safety incidents. The safety incident RCR for employees and service providers globally,
excluding illnesses, remained stable at 0,32 for the first six months of the year when compared to the
previous year (0,32 as at 30 June 2015). As at 31 December 2015, our workforce worked 15 months without
a fatality.
- For the six months ended 31 December 2015, we paid R18,1 billion in direct and indirect taxes to the South
African government. Sasol remains one of the largest corporate taxpayers in the country, contributing
significantly to the local economy.
- During the period, we invested R394 million in skills development and socio-economic development,
which includes investments in our Ikusasa programme, bursaries, learnerships and artisan training
programmes. As part of our commitment to the communities in which we operate, our Ikusasa
programme focuses on education, health and wellbeing, infrastructure and safety and security in the
Secunda and Sasolburg regions.
- While we support the transition to a lower carbon economy, we are concerned that the proposed
carbon tax does not address the structural issues that lie at the heart of the country's greenhouse
gas intensity. The proposed design of the carbon tax creates substantial regulatory and investment
uncertainty as there is insufficient clarity relating to the phases of the tax proposed in the draft carbon
tax bill, especially post 2020. In our view, South Africa needs appropriate incentives to invest in new, more
energy efficient processes and projects that will improve our energy security and maintain our global
competitiveness. Sasol continues to engage with the South African Government on the carbon tax issue.
- To ensure our ongoing compliance with new air quality regulations in South Africa, Sasol applied for
certain postponements to manage our short-term challenges relating to the compliance timeframes. We
have received decisions on our postponement applications from the National Air Quality Officer, which,
while aligned with our requests, imposed stretched targets in terms of our atmospheric emission licences.
Our R2,8 billion abatement programme remains on track to achieve our targeted reductions of volatile
organic compound emissions by 2020.
- We continue to measure our comprehensive climate change response through our key performance
indicators. For our South African operations, we are in the final stages of concluding carbon budgets
which we will be required to support for the next five years. We continue to investigate and implement
actions to further reduce our emissions.
- Following the excellent utility energy efficiency improvement for our operations in South Africa in 2015,
we have set the objective to sustain the same level of performance for the 2016 financial year, using the
2015 financial year performance as the new baseline. The Energy Intensity Index for our South African
operations is slightly above target for the six months ended 31 December 2015, following the September
2015 planned shutdowns. Notwithstanding, we are confident that we will meet our 2016 target.
- We view broad-based black economic empowerment (BBBEE) in South Africa as a business imperative
and our commitment to transformation has seen us record strong BBBEE contributor status ratings.
Our level 4 BBBEE contributor status is currently being evaluated and we expect this to decline after the
Department of Trade and Industry's revised Codes of Good Practice came into effect during the 2015
financial year. We have embarked on a project to re-assess our BBBEE strategies and adhere to the new
requirements.
- In February 2016, we declared an interim dividend of R356 million to our BEE partner, Tshwarisano LFB
Investment (Pty) Ltd, which holds a 25% shareholding in Sasol Oil (Pty) Ltd. We are proud to announce
that, based on the attractive returns generated by Sasol Oil (Pty) Ltd, the debt relating to our BEE
partner's equity shareholding has been settled. We remain committed to deliver sustainable returns to all
our stakeholders.
Competition law compliance
On 5 June 2014, the South African Competition Tribunal (the Tribunal) released its decision relating to Sasol
Polymers' pricing of propylene and polypropylene. In its decision, the Tribunal found against Sasol Polymers
in relation to the pricing of both propylene and polypropylene, for the period in question. Sasol appealed the
Tribunal's ruling to the Competition Appeal Court (CAC). On 17 June 2015, the CAC upheld Sasol's appeal and
set aside the decision of the Tribunal. The Competition Commission sought leave to appeal the matter to the
Constitutional Court, however, on 17 November 2015 the Constitutional Court refused such leave to appeal,
bringing this matter to an end.
Separately, the Competition Commission is conducting investigations into some of the industries in
which Sasol operates, including the petroleum and polymer industries, and has initiated a market inquiry
in the South African LPG market. We continue to cooperate with the Competition Commission in these
investigations. To the extent appropriate, further announcements will be made in future.
Profit outlook* – solid production performance and cost reductions to continue
The current economic environment remains volatile and very uncertain. Our expectation is for ongoing
moderate global growth, where growth in advanced economies mitigates the negative growth impact of
some emerging markets and commodity exporting nations. Oil prices are currently subject to sentiment
driven volatility and while some fundamentals indicate that the oil industry cycle is poised to turn, it remains
difficult to determine when this will happen. The rand continues to face a number of depreciation risks,
including a relatively strong US dollar, weak domestic growth prospects, negative emerging market sentiment
and policy uncertainty. As oil price and foreign exchange movements are outside our control, our focus
remains firmly on managing factors within our control, including volume growth, cost optimisation, effective
capital allocation and cash conservation.
We expect an overall strong production performance for the 2016 financial year, with:
- Liquid fuels product volumes for the Energy SBU in Southern Africa to be approximately 60 million barrels;
- Base Chemicals sales volumes to be lower than the prior year, with margins remaining under pressure;
- Performance Chemicals sales volumes to be slightly lower than the prior year, with average margins for
the business remaining resilient;
- A lower average utilisation rate at ORYX GTL in Qatar of approximately 80% of nameplate capacity due to
an extended statutory shutdown;
- A higher average utilisation rate at EGTL in Nigeria due to a steady ramp up;
- Normalised cash fixed costs to continue to trend below SA PPI;
- The RP cash flow contribution to range between R10 billion and R16 billion;
- BPEP cash cost savings to achieve an annual run rate of R4,3 billion by the end of the current financial
year;
- Capital expenditure of R74 billion for 2016 and R73 billion in 2017 as we progress with the execution of our
growth plan and strategy. Capital estimates may change as a result of exchange rate volatility;
- Our balance sheet gearing up to a level of between 20% and 30%;
- Average Brent crude oil prices to remain between US$25 and US$40; and
- Ongoing rand/US dollar volatility due to various factors, including the pending outcome of the credit
review of the South African sovereign credit rating.
* The financial information contained in this profit outlook is the responsibility of the directors and in
accordance with standard practice, it is noted that this information has not been reviewed and reported
on by the Company's auditors.
Appointment of Joint-Chief Executive Officers and change in directors
As previously announced, Mr David E. Constable will step down as President and Chief Executive Officer
on 30 June 2016. On 11 December 2015, Sasol announced the appointment of Mr Bongani Nqwababa and
Mr Stephen Cornell as Joint-Chief Executive Officers of the Company, and Mr Paul Victor as Chief Financial
Officer and Executive Director, with effect from 1 July 2016. On 4 December 2015, Prof Jürgen Schrempp retired
as a Director and Mr Henk Dijkgraaf was appointed as Lead Independent Director.
Declaration of cash dividend number 73
An interim gross cash dividend of South African 570,00 cents per ordinary share (31 December 2014 – 700,00
cents per ordinary share) has been declared for the six months ended 31 December 2015. The interim cash
dividend is payable on the ordinary shares and the Sasol BEE ordinary shares. The Board is satisfied that the
liquidity and solvency of the Company, as well as capital remaining after payment of the interim cash dividend
is sufficient to support the current operations. The dividend has been declared out of retained earnings
(income reserves). The South African dividend withholding tax rate is 15%. At the declaration date, there are
651 389 516 ordinary (including 8 809 886 treasury shares), 25 547 081 Sasol preferred ordinary and 2 838 565
Sasol BEE ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from
the dividend withholding tax, is 484,50 cents per share, while the dividend amount payable to shareholders who
are exempt from dividend withholding tax is 570,00 cents per share.
The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:
Declaration date Monday, 7 March 2016
Last day for trading to qualify for and participate in the final dividend (cum dividend) Friday, 1 April 2016
Trading ex dividend commences Monday, 4 April 2016
Record date Friday, 8 April 2016
Dividend payment date Monday, 11 April 2016
The salient dates for holders of our American Depository Receipts are(1):
Ex dividend on New York Stock Exchange (NYSE) Wednesday, 6 April 2016
Record date Friday, 8 April 2016
Approximate date for currency conversion Tuesday, 12 April 2016
Approximate dividend payment date Thursday, 21 April 2016
1. All dates are approximate as the NYSE sets the record date after receipt of the dividend declaration.
On Monday, 11 April 2016, dividends due to certificated shareholders on the South African registry will either
be electronically transferred to shareholders' bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders. Shareholders who hold dematerialised shares will have their
accounts held by their CSDP or broker credited on Monday, 11 April 2016.
Share certificates may not be dematerialised or re-materialised between Monday, 4 April and 8 April 2016,
both days inclusive.
On behalf of the board
Mandla SV Gantsho David E Constable Bongani Nqwababa
Chairman President and Chief Financial Officer
Chief Executive Officer
Sasol Limited
7 March 2016
The interim financial statements are presented on a condensed consolidated basis.
Statement of financial position
at
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Reviewed Reviewed Audited
Rm Rm Rm
Assets
Property, plant and equipment(1) 146 039 124 476 135 822
Assets under construction(1) 88 751 55 273 61 977
Goodwill 511 575 590
Other intangible assets 2 434 1 669 1 703
Investments in joint ventures and associates 15 088 11 492 11 870
Post-retirement benefit assets 638 568 590
Deferred tax assets 2 308 1 932 1 752
Other long-term assets 3 193 3 021 2 617
Non-current assets 258 962 199 006 216 921
Assets in disposal groups held for sale 273 426 89
Inventories 24 667 24 389 23 141
Trade and other receivables 31 659 26 560 29 973
Short-term financial assets 1 083 863 124
Cash and cash equivalents(2) 61 581 49 452 53 351
Current assets 119 263 101 690 106 678
Total assets 378 225 300 696 323 599
Equity and liabilities
Shareholders' equity 211 341 183 988 191 610
Non-controlling interests 5 167 4 176 4 873
Total equity 216 508 188 164 196 483
Long-term debt(1) 66 343 32 386 39 269
Long-term financial liabilities 977 11 8
Long-term provisions 15 951 11 686 13 431
Post-retirement benefit obligations 11 114 10 577 10 071
Long-term deferred income 517 317 425
Deferred tax liabilities 26 372 21 900 22 570
Non-current liabilities 121 274 76 877 85 774
Liabilities in disposal groups held for sale 48 32 15
Short-term debt 2 435 2 922 3 331
Short-term financial liabilities 243 164 198
Other current liabilities 37 098 32 006 37 479
Bank overdraft 619 531 319
Current liabilities 40 443 35 655 41 342
Total equity and liabilities 378 225 300 696 323 599
(1) The increase since 30 June 2015 is mainly due to translation and capital expenditure incurred on the construction of the
Lake Charles Chemicals Project. This was partly funded by the increase in long-term debt.
(2) Includes cash restricted for use of R5,4 billion (December 2014 - R4,9 billion; June 2015 - R5,0 billion).
Income statement
for the period ended
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Reviewed Reviewed Audited
Rm Rm Rm
Turnover 84 475 99 837 185 266
Materials, energy and consumables used (35 361) (44 770) (80 169)
Selling and distribution costs (3 718) (3 019) (6 041)
Maintenance expenditure (3 878) (3 832) (7 628)
Employee-related expenditure (11 816) (8 184) (22 096)
Exploration expenditure and feasibility costs (142) (268) (554)
Depreciation and amortisation (8 006) (6 561) (13 567)
Other income/(expenses) 307 (4 673) (9 912)
Translation gains/(losses) 2 582 (416) (1 115)
Other operating expenses (2 275) (4 257) (8 797)
Operating profit before remeasurement items 21 861 28 530 45 299
Remeasurement items (7 586) (169) (807)
Operating profit after remeasurement items 14 275 28 361 44 492
Share of profits of joint ventures and associates,
net of tax 641 1 673 2 057
Profit from operations 14 916 30 034 46 549
Net finance costs (361) (466) (956)
Finance income 719 594 1 274
Finance costs (1 080) (1 060) (2 230)
Profit before tax 14 555 29 568 45 593
Taxation (6 277) (9 406) (14 431)
Profit after tax 8 278 20 162 31 162
Attributable to
Owners of Sasol Limited 7 312 19 545 29 716
Non-controlling interests in subsidiaries 966 617 1 446
8 278 20 162 31 162
Earnings per share Rand Rand Rand
Basic earnings per share 11,97 32,04 48,71
Diluted earnings per share 11,97 31,95 48,70
Statement of comprehensive income
for the period ended
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Reviewed Reviewed Audited
Rm Rm Rm
Profit after tax 8 278 20 162 31 162
Other comprehensive income, net of tax
Items that can be subsequently reclassified
to the income statement 18 995 2 241 3 604
Effect of translation of foreign operations(1) 19 422 2 235 3 590
Effect of cash flow hedges (558) 1 –
Fair value of investments available-for-sale (17) 6 16
Tax on items that can be subsequently reclassified 148 (1) (2)
to the income statement
Items that cannot be subsequently reclassified
to the income statement 555 (856) (593)
Remeasurements on post-retirement benefit obligations 740 (1 238) (847)
Tax on items that cannot be subsequently reclassified (185) 382 254
to the income statement
Total comprehensive income for the period 27 828 21 547 34 173
Attributable to
Owners of Sasol Limited 26 753 20 926 32 727
Non-controlling interests in subsidiaries 1 075 621 1 446
27 828 21 547 34 173
(1) The increase in translation of foreign operations results mainly from the weaker average rand/US dollar exchange rate.
Statement of changes in equity
for the period ended
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Reviewed Reviewed Audited
Rm Rm Rm
Balance at beginning of period 196 483 174 769 174 769
Shares issued on implementation of share options 54 74 144
Share-based payment expense 64 387 501
Total comprehensive income for the period 27 828 21 547 34 173
Dividends paid to shareholders (7 140) (8 376) (12 739)
Dividends paid to non-controlling shareholders in (781) (237) (365)
subsidiaries
Balance at end of period 216 508 188 164 196 483
Comprising
Share capital 29 282 29 158 29 228
Share repurchase programme (2 641) (2 641) (2 641)
Sasol Inzalo share transaction (22 054) (22 054) (22 054)
Retained earnings 162 546 155 295 161 078
Share-based payment reserve 8 412 9 537 9 651
Foreign currency translation reserve 37 605 16 932 18 289
Remeasurements on post-retirement benefit obligations (1 419) (2 265) (1 976)
Investment fair value reserve 15 32 42
Cash flow hedge accounting reserve (405) (6) (7)
Shareholders' equity 211 341 183 988 191 610
Non-controlling interests in subsidiaries 5 167 4 176 4 873
Total equity 216 508 188 164 196 483
Statement of cash flows
for the period ended
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Reviewed Reviewed Audited
Rm Rm Rm
Cash receipts from customers 87 885 103 188 186 839
Cash paid to suppliers and employees (61 205) (69 224) (125 056)
Cash generated by operating activities 26 680 33 964 61 783
Cash flow from operations 27 473 32 158 56 344
(Increase)/decrease in working capital (793) 1 806 5 439
Finance income received 1 432 2 775 4 046
Finance costs paid (955) (190) (2 097)
Tax paid (5 195) (4 729) (10 057)
Dividends paid (7 140) (8 376) (12 739)
Cash retained from operating activities 14 822 23 444 40 936
Additions to non-current assets (33 559) (21 345) (45 106)
Increase in capital project related payables(1) 2 223 – 2 461
Additional investment in joint ventures and associates (251) (331) (588)
Disposal of businesses 25 715 738
Other net cash flow from investing activities (433) 218 410
Cash used in investing activities (31 995) (20 743) (42 085)
Share capital issued on implementation of share options 54 74 144
Dividends paid to non-controlling shareholders in (781) (237) (365)
subsidiaries
Proceeds from long-term debt 19 025 8 023 14 543
Repayments of long-term debt (2 070) (1 576) (1 663)
Proceeds from short-term debt 1 918 1 974 2 686
Repayments of short-term debt (2 328) (1 657) (2 280)
Cash generated by financing activities 15 818 6 601 13 065
Translation effects on cash and cash equivalents 9 285 1 598 3 095
Increase in cash and cash equivalents 7 930 10 900 15 011
Cash and cash equivalents at beginning of year 53 032 38 021 38 021
Cash and cash equivalents at end of year 60 962 48 921 53 032
(1) The movement in capital project related payables was not significant for the half year ended 31 December 2014.
Salient features
for the period ended
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Selected ratios
Return on equity % 7,4* 22,8* 16,4
Return on total assets % 9,2* 22,0* 15,8
Profit from operations margin % 17,7 30,1 25,1
Finance costs cover times 16,4 161,2 22,8
Dividend cover – Attributable basic earnings times 2,1 4,6 2,6
per share
Dividend cover – Headline earnings per share times 4,3 4,6 2,7
Share statistics
Total shares in issue million 679,8 679,3 679,5
Sasol ordinary shares in issue million 651,4 650,9 651,1
Treasury shares (share repurchase programme) million 8,8 8,8 8,8
Weighted average number of shares million 610,6 610,1 610,1
Diluted weighted average number of shares million 610,6 617,5 610,2
Share price (closing) Rand 419,40 431,01 450,00
Market capitalisation – Sasol ordinary shares Rm 273 197 280 533 292 995
Market capitalisation – Sasol BEE ordinary shares Rm 778 1 011 994
Net asset value per share Rand 347,66 302,91 315,36
Dividend per share Rand 5,70 7,00 18,50
– interim Rand 5,70 7,00 7,00
– final Rand – – 11,50
Other financial information
Total debt (including bank overdraft) Rm 69 397 35 839 42 919
– interest bearing Rm 69 192 35 239 42 187
– non-interest bearing Rm 205 600 732
Finance expense capitalised Rm 1 127 399 1 118
Capital commitments (subsidiaries and
joint operations) Rm 119 302 128 913 116 236
– authorised and contracted Rm 147 992 86 163 109 448
– authorised, not yet contracted Rm 58 261 96 808 66 266
– less expenditure to date Rm (86 951) (54 058) (59 478)
Capital commitments (equity accounted
joint ventures) Rm 765 991 648
– authorised and contracted Rm 1 175 1 126 716
– authorised, not yet contracted Rm 672 496 691
– less expenditure to date Rm (1 082) (631) (759)
Other financial information
Significant items in profit from operations
– Restructuring costs related to our business
performance enhancement programme(1) Rm 96 1 365 1 682
Retrenchment packages provided for Rm 19 612 165
Retrenchment packages settled during the year Rm 28 205 1 002
Accelerated share-based payments Rm (41) 395 157
Consultancy costs Rm 35 144 328
System implementation costs Rm 55 9 30
– Share-based payment expenses Rm 482 (2 523) (881)
Sasol share incentive schemes Rm 418 (2 910) (1 382)
Sasol Inzalo share transaction(2) Rm 64 387 501
Effective tax rate(3) % 43,1 31,8 31,7
Number of employees(4) number 30 369 32 495 30 919
Average crude oil price – dated Brent US$/barrel 46,97 89,00 73,46
Average rand/US$ exchange rate 1US$ = Rand 13,62 10,99 11,45
Closing rand/US$ exchange rate 1US$ = Rand 15,48 11,57 12,17
* Annualised
(1) In addition to these costs, an additional R36 million (December 2014 – R108 million; June 2015 – R224 million) of internal
resources was allocated to the project, bringing the total spend for the period to R132 million (December 2014 –
R1 473 million; June 2015 – R1 906 million).
(2) December 2014 and June 2015 includes a share-based payment expense of R280 million relating to the partial refinancing
of the Sasol Inzalo transaction.
(3) The increase in the effective tax rate was mainly due to the impairment of our Canadian shale gas assets (R7,4 billion),
partially offset by the reversal of the provision of R2,3 billion in respect of EGTL.
(4) The total number of employees includes permanent and non-permanent employees and the group's share of employees
within joint operations, but excludes contractors, equity accounted joint ventures' and associates' employees.
Half year Half year Full year
31 Dec 15 31 Dec 14 30 Jun 15
Rm Rm Rm
Reconciliation of headline earnings
Earnings attributable to owners of Sasol Limited 7 312 19 545 29 716
Effect of remeasurement items for subsidiaries and
joint operations 7 586 169 807
Impairment of property, plant and equipment 5 470 456 294
Impairment of assets under construction 1 988 1 093 2 555
Impairment of other intangible assets – 3 3
Impairment of goodwill and other smaller assets 207 – 1
Reversal of impairment – (1 353) (2 036)
Loss/(profit) on disposal of non-current assets 21 (81) (93)
(Profit)/loss on disposal of investment in (51) 483 410
businesses
Scrapping of non-current assets 230 120 549
Write-off of unsuccessful exploration wells (3) (5) –
Realisation of foreign currency translation reserve (276) (547) (876)
Tax effects and non-controlling interests (79) (195) (165)
Effect of remeasurement items for equity accounted
joint ventures and associates
Gross remeasurement items 8 2 (1)
Tax effects (1) – –
Headline earnings 14 826 19 521 30 357
Headline earnings adjustments per above
- Mining 12 8 31
- Exploration and Production International 7 450 1 825 3 126
- Energy 10 (48) (104)
- Base Chemicals 54 252 92
- Performance Chemicals 271 (1 318) (1 804)
- Group Functions (203) (548) (535)
Remeasurement items 7 594 171 806
Headline earnings per share Rand 24,28 32,00 49,76
Diluted headline earnings per share Rand 24,28 31,92 49,75
The reader is referred to the definitions contained in the 2015 Sasol Limited financial statements.
Basis of preparation
The condensed consolidated interim financial statements for the six months ended 31 December 2015
have been prepared in accordance with International Financial Reporting Standards, IAS 34, Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements
of the Companies Act of South Africa, 2008, as amended, and the Johannesburg Stock Exchange Listings
Requirements.
The condensed consolidated interim financial statements do not include all the disclosure required for
complete annual financial statements prepared in accordance with IFRS as issued by the International
Accounting Standards Board. The condensed consolidated interim financial statements are prepared on a going
concern basis. The Board is satisfied that the liquidity and solvency of the Company is sufficient to support
the current operations for the next 12 months.
These condensed consolidated interim financial statements have been prepared in accordance with the
historic cost convention except that certain items, including derivative instruments, liabilities for cash-settled
share-based payment schemes, financial assets at fair value through profit or loss and available-for-sale
financial assets, are stated at fair value.
The condensed consolidated interim financial statements are presented in South African rand, which is
Sasol Limited's functional and presentation currency.
The condensed consolidated interim financial statements appearing in this announcement are the
responsibility of the directors. The directors take full responsibility for the preparation of the condensed
consolidated interim financial statements. Bongani Nqwababa CA(Z), Chief Financial Officer, is responsible for
this set of condensed consolidated interim financial statements.
Accounting policies
The accounting policies applied in the preparation of these summarised consolidated interim financial
statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial
statements for the year ended 30 June 2015.
Related party transactions
The group, in the ordinary course of business, entered into various sale and purchase transactions on an
arm's length basis at market rates with related parties.
Significant events and transactions since 30 June 2015
In accordance with IAS 34, Interim Financial Reporting, we have included an explanation of events and
transactions which are significant to obtain an understanding of the changes in our financial position and
performance since 30 June 2015 in the financial results overview.
Significant Financial Instruments
Fair value
Valuation techniques and assumptions utilised for the purpose of calculating fair value
Fair value is determined using valuation techniques as outlined below. Where possible, inputs are based on
quoted prices and other market determined variables.
Fair Value hierarchy
The following table is provided representing the significant financial instruments measured at fair value at
reporting date, or for which fair value is disclosed at 31 December 2015. The US$ bond and the interest rate
swap were considered to be significant financial instruments for the group based on the amounts recognised
in the statement of financial position and the fact that these instruments are traded in an active market. The
calculation of fair value requires various inputs into the valuation methodologies used. The source of the
inputs used affects the reliability and accuracy of the valuations. Significant inputs have been classified into
the hierarchical levels in line with IFRS 13, as shown below:
Level 1 Quoted prices in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).
IFRS 13 fair Carrying value Fair value Valuation
Instrument value hierarchy Rm Rm method Significant inputs
Listed Level 1 15 396 14 324 Fair value Quoted market
long-term price for the same
debt or similar
instruments
Derivative Level 2 1 179 1 179 Net present Market interest
liabilities value rates
– interest
rate swap
For all other financial instruments, fair value approximates carrying value.
Independent review by the auditors
These condensed consolidated interim financial statements, including the segment report for the six months ended
31 December 2015 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified conclusion thereon.
The individual auditor assigned to perform the review is Mr PC Hough. A copy of the auditor's unmodified review
report on the condensed consolidated interim financial statements is available for inspection at the company's
registered office, together with the condensed consolidated interim financial statements identified in the auditor's
report. The auditor's report does not necessarily report on all of the information contained in this announcement of
interim financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature
of the auditor's engagement they should obtain a copy of the auditor's report together with the accompanying condensed
consolidated interim financial statements from the company's registered office.
Registered office: Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196
PO Box 5486, Johannesburg 2000, South Africa
Share registrars: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370-7700 Fax: +27 11 370-5271/2
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Directors (Non-Executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr HG Dijkgraaf (Dutch)^,
Ms NNA Matyumza*, Ms IN Mkhize*, Mr ZM Mkhize*, Mr MJN Njeke*, Mr PJ Robertson (British and
American)*, Mr S Westwell (British)*
Directors (Executive): Mr DE Constable (President and Chief Executive Officer) (Canadian), Mr B Nqwababa
(Chief Financial Officer), Ms VN Fakude
*Independent ^Lead independent director
Company Secretary: Mr VD Kahla
Company registration number: 1979/003231/06, incorporated in the Republic of South Africa
Income tax reference number: 9520/018/60/8
JSE NYSE
Ordinary shares
Share code: SOL SSL
ISIN: ZAE000006896 US8038663006
Sasol BEE Ordinary shares
Share code: SOLBE1
ISIN: ZAE000151817
American depository receipts (ADR) program:
Cusip number 803866300 ADR to ordinary share 1:1
Depositary: The Bank of New York Mellon, 22nd floor, 101 Barclay Street, New York, NY 10286,
United States of America
Disclaimer – Forward-looking statements: Sasol may, in this document, make certain statements that
are not historical facts and relate to analyses and other information which are based on forecasts
of future results and estimates of amounts not yet determinable. These statements may also relate
to our future prospects, developments and business strategies. Examples of such forward-looking
statements include, but are not limited to, statements regarding exchange rate fluctuations, volume
growth, increases in market share, total shareholder return, executing our growth projects and cost
reductions, including in connection with our BPEP and RP. Words such as "believe", "anticipate",
"expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 the predictions,
forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks
materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from
those anticipated. You should understand that a number of important factors could cause actual results
to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such
forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F
filed on 9 October 2015 and in other filings with the United States Securities and Exchange Commission.
The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make
investment decisions, you should carefully consider both these factors and other uncertainties and events.
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.
Please note: A billion is defined as one thousand million. All references to years refer to the financial year
ended 30 June. Any reference to a calendar year is prefaced by the word "calendar".
Comprehensive additional information is available on our website: <a href="http://www.sasol.com" target="_blank">www.sasol.com</a>
<a href="http://www.sasol.com" target="_blank">www.sasol.com</a>
Date: 07/03/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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