Trading statement for the financial year ended 30 June 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”)
SOL: SASOL LIMITED - Trading statement for the financial year
ended 30 June 2015
Sasol´s headline earnings per share (HEPS) for the financial
year ended 30 June 2015 is expected to decrease by between 14%
and 19% (approximating R8,42 to R11,43 per share) and earnings
per share (EPS) for the same period is expected to range
between a 3% decrease and a 2% increase (approximating a R1,46
decrease per share to a R0,97 increase per share), off a 2014
financial year base of R60,16 and R48,57 respectively. On a
normalised basis, excluding the impact of notable once-off
items, net impairment charges and the share-based payment
expense, EPS are expected to decrease by between 26% and 31%.
Sasol´s profitability for the 2015 financial year was
positively impacted by the following factors within our
control :
Another year of strong operational performance, with increases
in production and sales volumes at most of our businesses
across our integrated value chain;
Resilient gross margins achieved across our businesses as a
result of our diversified asset portfolios and the
contributions from our Response Plan initiatives; and
Normalised cash fixed costs trending well below inflation due
to exceeding the Business Performance Enhancement Programme
and Response Plan cost savings targets for the 2015 financial
year.
Profitability further benefitted from:
A 10% weaker average rand/US dollar exchange rate;
Once-off charges prompted by volatile macro-economic factors,
changes to the share price and decisive management actions:
A cash-settled share-based payment credit of R1,3 billion
compared to an expense of R5,4 billion in the prior year,
largely due to a 29% lower share price partially negated by
the increase in the number of share options exercised during
the year;
Extension of the useful life of our Southern African
operations resulting in lower depreciation and rehabilitation
charges amounting to R3,2 billion;
Reversal of a provision of R0,5 billion based on the South
African Competition Appeal Court setting aside a previous
Competition Tribunal decision relating to Sasol’s propylene
and polypropylene pricing; and
Net re-measurement items expense of R0,8 billion for the
financial year compared to a R7,6 billion expense in the
previous financial year.
Conversely, Sasol´s profitability was negatively impacted by a
33% lower average Brent crude oil price (average dated Brent
was US$73,46/barrel for the 2015 financial year compared to
US$109,40 in the prior year).
We delivered another year of strong group-wide operational
performance to enable us to mitigate the impact of the lower
oil price, with liquid fuel sales volumes at our Energy
business increasing by 5% from the prior year to a record of
61,5 million barrels, exceeding our previous guidance of 59
million barrels. Our Base Chemicals and Performance Chemicals
businesses increased their sales volumes by 2% and 3%,
respectively, on a comparable basis. In addition, our ORYX GTL
facility sustained its solid performance, with an average
utilisation rate of 90% for the year, despite a 28 day
shutdown during December 2014 and January 2015. A detailed
production summary and key business performance metrics have
been made available on our website, <a href="http://www.sasol.com" target="_blank">www.sasol.com</a>.
Our company-wide Business Performance Enhancement Programme
aimed at ensuring cost discipline and focused cost reductions
is progressing well, and we are set to exceed our sustainable
cost savings target for the 2015 financial year while
implementation costs remain within previous guidance.
Our comprehensive Response Plan to conserve cash, in reaction
to the lower-for-longer oil price environment, has already
yielded cash savings ahead of our 2015 financial year targets
with the following key deliverables:
Further cash cost savings realised ahead of our expectations;
Maximising margins within a volatile and uncertain economic
environment in line with our expectations;
Reduction of our capital portfolio spend in line with our
expectations; and
Implementation of the revised dividend policy.
The most significant re-measurement items for the financial
year include:
A full reversal of the impairment of the FT Wax Expansion
Project of R2,0 billion, of which R1,3 billion was already
recognised at 31 December 2014, mainly due to the extension of
the useful life of the asset from 2029 to 2034 and a weaker
rand/US dollar exchange rate;
A further partial impairment of our share in the Montney shale
gas assets of approximately R1,3 billion (CAD133 million) due
to poor conditions in the North American gas market which
resulted in a 19% decline in natural gas prices. This is in
addition to the impairment of R5,3 billion recognised in the
prior financial year; and
As previously communicated during our interim results
announcement, a partial impairment of our Etame assets in
Gabon of R1,3 billion at 31 December 2014 as a result of the
decrease in the oil price.
Our results for the financial year may be further affected by
any adjustments resulting from our year-end closure process.
This may result in a change in the estimated earnings noted
above.
The financial information on which this trading statement is
based has not been reviewed or reported on by the Company's
external auditors. Sasol's financial results for the financial
year ended 30 June 2015 will be announced on Monday, 7
September 2015.
7 August 2015
Johannesburg
Sponsor: Deutsche Securities (SA) Proprietary Limited
Date: 07/08/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.