Trading statement for the six months ended 31 December 2016
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”)
Trading statement for the six months ended 31 December 2016
Sasol´s earnings per share (EPS) for the six months ended
31 December 2016 are expected to increase by between 12% and 22%
(approximating R1,44 to R2,63 per share) compared to the 2016
financial half year (prior period) EPS of R11,97. Headline
earnings per share (HEPS) for the same period are expected to
decrease by between 34% and 44% (approximating R8,26 to R10,68
per share) from the prior period HEPS of R24,28.
Overall, Sasol delivered a strong business performance across
most of the value chain. Secunda Synfuels’ production volumes
increased by 1% and our Eurasian operations increased production
volumes by 8% on the back of stronger product demand. Natref’s
production volumes were down 7% mainly due to planned shutdowns
during the period under review. Normalised sales volumes
increased by 11% for our Base Chemicals business and 2% for our
Performance Chemicals business compared to the prior period
mainly on the back of stronger demand, higher chemical margins
and improved plant stability. Liquid fuels sales volumes
decreased by 2% due to the Natref planned shutdowns and more
volumes allocated to the higher margin yielding chemical
businesses. ORYX GTL achieved a utilization rate of 95% with the
run-rate of production in line with previous market guidance
provided. A detailed production summary and key business
performance metrics for the first half of the 2017 financial
year for all our businesses are available on our website,
<a href="http://www.sasol.com" target="_blank">www.sasol.com</a>.
We have seen a steady and continued recovery in global oil and
product prices during the period under review. Normalised cash
fixed costs continued to trend well within inflation for the
period under review. HEPS was however negatively impacted by the
following items:
* Although the average rand/US dollar exchange rate weakened by
3% to R13,99 during the period under review, the closing
rand/US dollar exchange rate, however, strengthened to R13,74
at 31 December 2016 (30 June 2016 – R14,71) resulting in
translation losses of approximately R1,3 billion on the
valuation of the balance sheet compared to translation gains
of R2,6 billion, which includes foreign exchange contracts,
recognised in the prior period. The valuation impact of the
stronger closing exchange rate for the period under review
negatively impacted earnings by approximately R1,46 per
share;
* The impact of labour actions at our Secunda mining
operations, during the six month period, resulted in a 16%
decrease in mining production volumes and significantly
higher once-off costs to ensure a continuous supply of coal
to our Secunda Synfuels Operations. The additional net cost
associated with the labour action is estimated at
approximately R1 billion or R1,06 per share; and
* Once-off items in the prior year of R2,3 billion or R3,77 per
share relating mainly to the reversal of the Escravos GTL
provision.
Our results for the first half of the 2017 financial year may be
further affected by any adjustments resulting from our half
year-end closure process. This may result in a change in the
estimated earnings noted above. This trading statement only
deals with the comparison to the first half of the 2016
financial year.
The financial information on which this trading statement is
based has not been reviewed and reported on by the Company's
external auditors. Sasol's financial results for the six months
ended 31 December 2016 will be announced on Monday,
27 February 2017.
26 January 2017
Johannesburg
Sponsor: Deutsche Securities (SA) Proprietary Limited
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 Business Performance Enhancement Programme and Response
Plan. 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 27 September 2016 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.
Date: 26/01/2017 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.