Sasol’s Response to Covid-19 Lock Down in SA; Credit Rating and Oil Hedging Update, and Cautionary Statement
(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 “Company”)
SASOL’S RESPONSE TO COVID-19 LOCK DOWN IN SOUTH AFRICA;
CREDIT RATING AND OIL HEDGING UPDATE, AND CAUTIONARY
SASOL’S RESPONSE TO COVID-19 MEASURES
Sasol welcomes and fully supports the directives announced by South African
President Cyril Ramaphosa on 23 March 2020, to combat the spread of COVID-19
in South Africa, including a three-week country-wide lockdown (“the COVID-19
directives”), which effectively commenced on Friday, 27 March 2020 and will
continue until Friday, 17 April 2020.
In South Africa, Sasol’s products and services, by and large, are classified as
essential goods and services as per Annexure B of the Lockdown Regulations
issued by the Minister of Cooperative Governance and Traditional Affairs on 25
March 2020. Sasol plans to run its South African-based operations for the duration
of the lockdown, and will work with the Government to ensure business continuity
and uninterrupted supply of fuels and chemicals in South Africa during this period.
However, some plants will be required to reduce throughput, or potentially
shutdown following lower product offtake by our customers due to the lockdown.
Furthermore, some intermediate chemicals will be re-directed to the production of
products where demand is not impacted, to the extent possible. To this end, Sasol
has formulated a special blend of alcohols to address the increasing demand for
sanitizer alcohols, and will expedite the production and availability of these critical
products locally to help safeguard the health and wellbeing of South Africans.
Sasol is collaborating with the South African Department of Trade, Industry and
Competition (DTIC) and is also prioritising supply to Government entities and other
essential services to jointly combat the spread of the virus in South Africa.
The health and wellbeing of employees remains Sasol’s foremost priority and
appropriate measures have already been taken to mitigate the risk of COVID-19
infection across all of Sasol’s sites. These measures are being strictly enforced
and closely monitored to ensure the ongoing safety of employees and the public.
Outside of South Africa, most of Sasol’s operations are continuing, with no
significant impacts to North American Operations (NAO) or its supply chain, or to
the Lake Charles Chemicals Project (LCCP) construction to date. Chemical
manufacturing is defined as a critical infrastructure sector, and therefore NAO and
the LCCP is exempt from the stay-at-home order issued by the Louisiana
All European and Asian assets are currently in operation. The Central Processing
Facility (CPF) in Temane, Mozambique, which supplies natural gas to
Mozambique and South Africa is not affected. Sasol continues to work closely with
suppliers and customers to ensure uninterrupted supply, where possible.
The COVID-19 situation is highly dynamic and with infection rates continuing to
increase in many countries, there is a risk of interruptions to production,
construction and associated supply chains, along with a potential impact on
demand and product pricing in some sectors. Shareholders are therefore advised
that this could impact Sasol’s earnings for 2020 financial year (FY20). The impact
on the business, suppliers and customers is being continuously evaluated and an
update will be provided in the Q3 FY20 Business Performance Metrics report.
UPDATE ON CREDIT RATING AND OIL HEDGING
Sasol notes that the credit rating agencies, S 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.
Date: 31-03-2020 08:00:00
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