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Sasol - Interim Profit Statement And Declaration Of Dividend

Release Date: 06/03/2001 07:49:42      Code(s): SOL
Interim profit statement and declaration of dividend number 43 for the
half-year ended 25 December 2000
Delivery on strategic growth drivers
Revenue up 42%
Operating profit up 99%
Headline earnings per share up 147%
Dividend per share up 69%
All major divisions excelled
Condea acquisition, effective 1 March 2001,creates potential for growth; and
enhances global human resource base
Mozambican gas agreements signed
Sasol-Chevron global joint venture finalised
International gas-to-liquids projects sanctioned
Significant capital investment in South Africa and abroad
Exceptional performance maintained . . . . Headline earnings per share for the
first half of the 2001 financial year increased by 147% to 593 cents per share
compared with the first half-year of the 2000 financial year. The financial
results of Condea for the half-year to 25 December 2000 have not been included
in Sasol's results as the transaction only became effective on 1 March 2001.
Several factors contributed to the outstanding performance, the more notable of
which include:
the relative strength of international crude oil and chemical prices, assisted
by a further depreciation of the rand against the US dollar  and euro as
indicated below;
Key variables                         Half-year ended  Half-year ended
(averages)                            25.12.2000       25.12.1999
Derived crude oil US$/bbl             27,66            16,52
Rand:US dollar 1                      7,17             6,12
Rand:euro 1                           6,45             6,38
continuing strong growth in export volumes; the disciplined management of
operating costs, supported by concomitant initiatives to enhance productivity
and economy of scale; and organic growth from many of the Group's established
and new businesses, including key Sasol Chemical Industries (SCI) divisions.
The Group has, for the first time, prepared its interim financial results in
accordance with the accounting standards issued by the International Accounting
Standards Committee (IASC). Where applicable, the comparative figures have been
restated. The effect of the restatement on attributable and headline earnings
per share and gearing, however, has been insignificant.
Financial results
Key financial highlights
Strong growth trajectory maintained . . . . Group revenue for the half-year
increased by 42% to R17,0 billion compared with the first half of the 2000
financial year, while operating profit increased by 99% to R4,8 billion.
Headline earnings per share increased by 147% to 593 cents per share, while
attributable earnings per share increased by 122% to 500 cents per share for
the half-year compared with the first half of the 2000 financial year. (Note: 1
billion equals 1 000 million).
The Group's funding requirements during the half-year were met primarily from
its own strong cash flow, complemented by the medium-term note programme, the
first tranche of which raised R900 million. The Group's balance sheet reflects
a net gearing (after cash) of 7%.   An interim dividend of 140 cents per share
has been declared, an increase of 69% on the dividend declared for the first
half of the 2000 financial year.
Capital items
Under- and non-performing assets written off . . . . An amount of R576 million
(after tax) was allocated during the half-year to reduce the value of certain
under- and non-performing plant and other assets. The mothballed acrylonitrile
plant at Secunda has been written off at a value of R354 million primarily
because of long-term low international acrylonitrile prices forecast and
Sasol's decision, for the foreseeable future, not to compete in the marginal
acrylonitrile market.
A further R111 million is attributable to the impairment of plant and related
assets of the Sasol Fibres factory in Durban. Continuing adverse market
conditions in the international and domestic acrylic fibre markets have been
impacting severely on Sasol Fibres' margins and have necessitated the write off
An amount of R68 million was also written off following Sasol Polymers'
decision to close down its ageing chlorine plant at Umbogintwini. R26 million
was written off relating to Marine 6 Congo's expected oil production. A further
R17 million was written off in respect of mining activities in Sasolburg, that
was earmarked to supply feedstocks to SCI.
Vision and growth drivers
Keen focus on growth maintained . . . . Underscoring Sasol's vision, notably
its globalisation drive, the half-year's outstanding results reflect the
Group's continuing ability to deliver on its strategic plan and to maintain a
sharp focus on its five primary growth drivers:
expanding and growing the Group's portfolio of higher-value chemicals;
leveraging Fischer-Tropsch and other unique technologies; sustaining growth in
established businesses; exploiting a complementary upstream thrust into
hydrocarbon exploration and production; and promoting improvement and
optimisation in all business disciplines.
Expanding the chemical portfolio
Condea will accelerate SCI's growth . . . . Sasol's globalisation drive
entails, among other opportunities, a continuing focus on strategic business
acquisitions in the South African and international fuels, chemicals and
related sectors. As announced recently, Sasol concluded a substantial asset and
share purchase agreement with RWE-DEA Aktiengesellschaft f|r Mineraloel und
Chemie (RWE-DEA) of Germany for that company's entire chemical business,
Condea, effective 1 March 2001.
   Besides having excellent geographic coverage and world-class human capital
and technology, Condea complements Sasol's strategic growth initiatives in
support of achieving further diversification and growth in the manufacturing
and marketing of higher-value chemicals. Apart from offering a strong hedge
against the vagaries of the international crude oil price and the rand, Condea
provides a springboard to unlock new synergism within some of SCI's major
growth divisions, among them the high-growth Alpha Olefins and Solvents
Condea - to be renamed in line with Sasol's brand architecture - is expected,
in ensuing financial years, to contribute significantly to Group profits.
Condea was acquired at a reasonable price and competitive financing was
successfully negotiated.
SCI has also acquired the remaining 50% of Fedmis Phalaborwa from its
joint-venture business partner, AECI Limited.
Significant capex for chemicals . . . . Various new and expanded petrochemical
plants and facilities are under construction. The most notable of these plants
the R1 billion plant at Secunda for the production of detergent-range alcohols,
which is scheduled for commissioning in 2002; Sasol Polymers' R1,2 billion
investments in two joint-venture plants in Malaysia; and the R1 billion
n-butanol plant at Sasolburg licensed by Mitsubishi Chemical Corporation, which
is scheduled for commissioning in 2003.  A number of other projects are likely
to be approved in the near future, the most notable of these plants include:
the R1,6 billion acrylic acid and acrylates plant, in partnership with
Mitsubishi Chemical Corporation at Sasolburg, which is due for completion in
2003; and the R457 million second plant at Secunda to extract and refine
additional volumes of 1-octene, which is due for completion in 2003. The four
local new projects (other than two joint-venture plants in Malaysia), will add
more than 500 000 tonnes a year to SCI's extensive product portfolio.
Significantly, more than 90% of these product volumes will be exported from
South Africa.
Leveraging unique technology
Innovation goes beyond GTL technology . . . . The leveraging of Sasol's
Fischer-Tropsch and other unique technologies at Sasolburg and Secunda
continues to sharpen the Group's competitive advantage by helping to improve
economy of scale, plant stability and both the range and quality of key
products, among other factors. The finalisation of the Sasol-Chevron global
joint-venture (GJV) company during the half-year will lead to the commissioning
of the GJV's first plant within the next four years. The first in a series of
planned new-generation gas-to-liquids (GTL) plants in Nigeria and Qatar have
been approved.
Sustained growth in established businesses
Major fuel expansion projects . . . . Organic growth from established
businesses remains a key growth driver and is exemplified by the R760 million
investment (Sasol's share) to achieve a 21% expansion of the refinery capacity
of National Petroleum Refiners of South Africa (Natref) at Sasolburg.

At Sasol Synthetic Fuels' (SSF) operations, various plant and infrastructure
expansion and upgrading projects are under construction. The most notable of
these is the R220 million project to construct the ninth Sasol Advanced Synthol
(SAS) reactor. Once commissioned later this year, it will enable SSF to
increase its production capacity and to further enhance its overall operational
integrity and economy of sale.
Upstream hydrocarbon thrust
Exploration gains impetus . . . . The Group's increasing upstream thrust into
oil and gas exploration and production is gathering impetus and will enable
Sasol - principally through the synergistic operations of Sasol Oil and Sasol
Petroleum International (SPI) - to start marketing Mozambican natural gas from
2004 onwards.
Business optimisation and sustainability
Business renewal amasses benefits . . . . The focus on identifying and pursuing
new business optimisation opportunities continues to amass benefits, as the
business renewal projects of Sasol Mining and Sasol Oil testify. In addition,
in the wake of completing its successful Vulamehlo transformation process, SSF
has initiated Project Champion as part of a concerted programme of striving to
unlock new business growth and optimisation opportunities in the ensuing decade
The Net Gain project, which positions the Group to achieve sustainable annual
cost savings of about R400 million, is likely to save the Sasol group of
companies at least R300 million during the current financial year, on top of
the R100 million saved last year.
Sasol's strategic growth plans are dynamic and far-reaching, and to this end it
is making significant investments into new energy, fuel, chemical and related
projects (as discussed under other key growth drivers above). These growth
opportunities are pursued at a time when South Africa is in dire need of new
The Group recognises that its licence to operate its diverse and growing
international exploration, manufacturing and logistical operations depends on
these activities being conducted with the necessary sensitivity and respect for
the long-term economic, social and environmental needs of present and future
generations of citizens. Sasol accepts the sustainable development principle as
the profitable integration of continual technological progress, improvement of
social structures and the more efficient and prudent use of ecological
resources in order to create sustainable stakeholder value. The Group will
later in March 2001 publish the Sasol Safety, Health and Environmental Report
2000. This report, the third of its kind, will showcase the Group's encouraging
progress in managing its impacts and risks and thereby its willingness and
ability to be a responsible and caring corporate citizen.
Divisional contribution to operating profit
                                   Half-year   Half-year   Year
                                   ended       ended       ended
                                   25.12.2000  25.12.1999  25.06.2000
                                   R million   R million   R million
                                               (restated)  (restated)
SSF                                3 607       1 310       3 999
Mines                              254         172         317
Oil                                686         337         773
SCI                                1 120       743         1 638
Other                              (120)       (52)        (89)
                                   5 547       2 510       6 638
Capital items and goodwill         (761)       (111)       (346)
                                   4 786       2 399       6 292
Divisional performance
Comparisons below are made between operating profit before the write-off of
under- and non-performing assets and goodwill for the first half-years of 2000
and 2001.
Sasol Synthetic Fuels
Good conditions spur synfuels operation . . . . The increase of 175% in Sasol
Synthetic Fuels' (SSF) operating profit was mainly due to highly favourable
trading conditions, including strong international oil prices. Revenue
increased by 61% as a result of an increase of 67% in the derived crude oil
prices, while the US dollar exchange rate has increased by an average of 17%
from the previous half-year. No tariff protection was received during the
period under review.
Sales volumes decreased slightly compared with the first half of the 2000
financial year, primarily as a result of product inventory increases and some
plant instability. Operating costs increased by 9%, before the costs of an
intensified maintenance programme, to increase plant integrity over the longer
term, is taken into account. If the intensified maintenance programme costs are
included operating costs increased by 14%.
It is expected that the operating profit for the remaining six months of the
financial year will be slightly higher than that for the first six months, in
spite of a projected decrease in crude oil prices for the period ahead. This is
mainly due to the impact of the annual factory shutdown in the first six months
not recurring, as well as a slight increase in production output and currency
Sasol Mining
Profit up despite lower production . . . . The operating profit of R254 million
is 48% higher, despite a marginal reduction in SSF's coal offtake. This
improved performance is due mainly to a recovery in the price of Sasol Mining's
export steam-grade coal, excellent cost containment at all mines and services
departments and improved productivity levels throughout the division.
The 53 % increase in export sales resulted primarily from a 13% increase in the
US dollar price of coal, as well as a 17% weakening of the exchange rate.
Notwithstanding the negative impact of the latter on costs and a 2% lower
production rate, the Secunda unit production cost increase was limited to 3%.
Both the production rate and the operating profit are expected to be slightly
higher in the second half-year.
Sasol Oil
Favourable refining margins lift profits . . . . Sasol Oil's operating profit
amounted to R686 million, which is 104% higher than that achieved for the
previous half year. The variance is due mainly to a favourable rand refining
margin. The refining margin in the second half-year is expected to be lower
than that of the first, thereby resulting in a reduced operating profit.
The execution of the plans to reposition and grow Sasol in the South African
liquid fuels industry after the expiring of the main supply agreement at the
end of 2003 is progressing well. It is Sasol's intention to fully integrate
downstream into direct fuel marketing and to control and operate more than 300
service stations across South Africa after 2003.
Sasol Chemical Industries
Mostly positive factors lift SCI to new heights . . . . In keeping with its
strong growth trend of the past five years, SCI increased its operating profit
for the half-year by 51% to R1 120 million. Overall growth in operating profit
is attributable to five main factors:
the comparatively strong international prices realised for most of SCI's
chemicals; the continuing stringent control of operating costs; the increased
production by some of the key divisions; stable plant operations; and the
increasing trend towards manufacturing and marketing higher-value chemicals
such as alpha olefins and high-purity solvents.
Sasol Alpha Olefins achieved a significant surge in profits during the
half-year. The benefit of higher selling prices, resulting from increased
American ethylene prices and higher sales volumes of 1-hexene and 1-octene were
partly offset by higher feedstock costs. The successful commissioning of the
third train for the production of hexene at Secunda in October 2000 added
substantial hexene production capacity. This capacity is expected to contribute
to a further improvement in Sasol Alpha Olefins' contribution to profits in the
second half-year.
Increased feedstock costs, triggered by higher oil prices, resulted in
commodity solvent prices remaining at the levels reached early in 2000. Sasol
Solvents' sales volumes were about 20% higher than those achieved for the first
half of the 2000 financial year. As a result, the profits of Sasol Solvents
exceeded expectations and showed a pleasing improvement.
Sound management counters cost impacts . . . . Sasol Polymers (formerly
Polifin) continued to experience unprecedented margin pressure during the
half-year, with continuing high oil prices impacting significantly on feedstock
costs. To counter this impact, the ongoing focus on productivity improvements
yielded further benefits and costs were contained to well below inflation. As a
result, operating profit was slightly higher for the half-year than that
achieved in the previous half year.
The Secunda polypropylene plant, damaged by fire in February 2000, was
reconstructed and recommissioned on schedule. In November 2000, Sasol Polymers
announced that its Umbogintwini chlorine plant will be closed down at the end
of March 2001 due to the plant's declining competitiveness. Sasol Polymers'
future chlorine production will be consolidated at Sasolburg and will be
focused strategically on meeting the requirements of the division's polyvinyl
chloride (PVC) business.   The construction of the world-scale joint-venture
ethylene and polyethylene plants, in which Sasol Polymers has invested in
Malaysia, is progressing satisfactorily and commissioning of these plants
remains on schedule for the third quarter of 2001 calendar year.
The revenue of Sasol SMX increased marginally compared with the first half of
the 2000 financial year. The substantial increases in the cost of the main
feedstocks, ammonia and fuels, could not be recovered through higher selling
prices, resulting in a disappointing profit performance for the half-year.
Furthermore, a delay occurred in the release of Sasol Mining Initiators'
new-generation electronic initiation system because of the need to further
improve its reliability for specific applications.
Nevertheless, it is pleasing that both local and international customers are
recognising the improved performance and economic value that Sasol SMX's
differentiated products and services offer. For this reason, Sasol SMX's
financial results are expected to improve during the 2002 financial year.
Continuing competition from nitrogen imports and higher ammonia prices resulted
in Sasol Agri's margins being under significant pressure during the half-year.
Modest increases in crop prices and higher input costs contributed to a further
deterioration of farmers' overall debt position, thereby lowering the volumes
of their fertiliser purchases. The profit potential for the second half-year
will be influenced significantly by high input costs and climatic vagaries and,
therefore, the farmers' ability to achieve acceptable crop returns.
Notwithstanding the adverse impact of high feedstock costs on various SCI
businesses, profits during the second half-year are expected to equal those of
the first half-year. The estimated effect on earnings per share for the 2001
financial year, relating to the Condea acquisition for the period March to June
2001, after interest, is marginally negative in line with the circular of 22
December 2000.    Sasol Synfuels International
Joint venture gears for global GTL era . . . . Sasol's global GTL joint venture
with Chevron was formed on 16 October 2000.
The Escravos venture in Nigeria will be the first GTL project supported by the
new Sasol-Chevron global joint venture. The participation of the Nigerian
National Petroleum Corporation in the Escravos GTL venture was finalised in the
second half of 2000.  It is anticipated that front-end engineering and design
(FEED) for this venture will commence during the first half of 2001 calendar
The commercial agreements for the Qatari GTL venture with Qatar Petroleum  are
being finalised and FEED work is scheduled to commence before June 2001.
Sasol Petroleum International and natural gas Mozambican advances bring gas
within reach . . . . Following the acquisition of Enron's 60% participating
interest in the Pande gas field, Pande and Temane combined will provide
sufficient gas reserves to undertake a joint development to export natural gas
to South Africa.  The Mozambican state-owned public company, CMH, (holding a 30
percent equity share) and Sasol (70 percent equity share) signed an agreement
covering the development of the Pande and Temane gas fields.
Pipeline development commences . . . . Sasol in partnership with the South
African and Mozambican Governments has entered into the basic design and
development stage of the project. This will include the engineering of field
facilities and pipeline design.  Construction of the 895km pipeline and the
development of field facilities in Temane and Pande are expected to commence in
Unfortunately, the two offshore natural gas exploration wells drilled in Sofala
Bay, Mozambique were unsuccessful.
A recent appraisal well drilled in the Etame Marine Permit, offshore Gabon, has
confirmed SPI's confidence in the presence of a commercially attractive oil
field development.
Sasol Financing
Treasury operation adds value . . . . During the half-year the division has
played a significant role in facilitating and fulfilling the Group's various
financing requirements in South Africa and offshore, including the financial
arrangements for the Condea acquisition. Through the expertise of Sasol
Financing, the Group is able to manage the strong cash flows, negotiate
favourable interest rates and contain gearing.
Share buyback programme continues . . . . For the half-year to 25 December
2000, the wholly owned subsidiary company, Sasol International Holdings (Pty)
Limited, purchased 14,3 million Sasol Limited shares at a cost of R748 million.
Sasol International Holdings' total shareholding in Sasol Limited at 25
December 2000 was 42,1 million shares, purchased at a cost of R2 billion. Since
25 December 2000, a further 765 700 Sasol Limited shares have been purchased by
Sasol International Holdings at a cost of R38 million. This brings Sasol
International Holdings' total shareholding to 6% of the issued share capital of
Sasol Limited.
Other changes in debt instruments . . . . As part of Sasol's domestic
medium-term note programme, R900 million notes were issued during June 2000.
The 2000 financial year's total dividend per share exceeded the total of
interest payable on each debenture, being 157 cents per debenture. The 56,4
million debentures were therefore converted into ordinary shares on the basis
of one ordinary share per debenture, effective 26 June 2000.
Particulars of financial results
Results reflect growth . . . . The financial results and restated comparative
figures have been reviewed by the external auditors, KPMG Inc, and their review
report is available for inspection at the registered office of the company. The
Group's unaudited consolidated results for the half-year ended 25 December 2000
are as follows:
Consolidated income statement
                        Half-year   Half-year              Year
                        ended       ended         %        ended
                        25.12.2000  25.12.1999    increase 25.06.2000
                        R million   R million              R million
                                    (restated)             (restated)
Revenue                 16 963      11 971        42       25 762
Operating profit        4 786       2 399         99       6 292
Interest received       101         66                     198
Dividends received      6           3                      5
Interest paid           (169)       (198)                  (387)
Income before taxation  4 724       2 270         108      6 108
Provision for taxation  (1 577)     (767)                  (1 989)
Income after taxation   3 147       1 503         109      4 119
Outside shareholders'
interest                (12)        (11)                   (18)
Earnings attributable
to permanent capital
holders                 3 135       1 492         110      4 101
Depreciation            978         937                    1 934
Amounts written off
fixed assets            734         106                    253
Adjustment for headline
earnings**              580         102                    306
Earnings per share
(cents)                 500         225*          122      621*
Headline earnings per
share (cents)           593         240*          147      667*
Dividend per share
- declared after period
end                     140         83            69       137
- paid during the
period                  137         86            59       169
**Fully diluted
**Write-off of under- and non-performing assets (after tax) and         goodwil
Changes in equity statement
                                    Half-year   Half-year   Year
                                    ended       ended       ended
                                    25.12.2000  25.12.1999  25.06.2000
                                    R million   R million   R million
                                                (restated)  (restated)
Share capital
Beginning of period                 1 559       1 543       1 543
Issued during the period            18          13          16
Conversion of debentures            1 028       -           -
End of period                       2 605       1 556       1 559
Unappropriated income
Beginning of period                 15 554      12 735      12 735
IAS adjustment to opening balance   -           (195)       (195)
Restated opening balance            15 554      12 540      12 540
Earnings for the period             3 135       1 492       4 101
Debenture interest                  -           (31)        (62)
Dividends paid                      (785)       (521)       (1 025)
End of period                       17 904      13 480      15 554
Translation of foreign entities
Beginning of period                 147         81          81
Movement for the period             89          16          66
End of period                       236         97          147
Foreign currency reserve
Beginning of period                 -           -           -
Movement for the period             155         -           -
End of period                       155         -           -
General reserve                     340         340         340
Equalisation reserve                432         432         432
Convertible debentures              -           1 028       1 028
Share buyback programme             (2 038)     -           (1 290)
Permanent capital holders'
interest                            19 634      16 933      17 770
Consolidated balance sheet
                                    As at       As at       As at
                                    25.12.2000  25.12.1999  25.06.2000
                                    R million   R million   R million
                                                (restated)  (restated)
Equity and liabilities
Permanent capital holders'
interest                            19 634      16 933      17 770
Outside shareholders' interest      100         103         112
Long-term liabilities               1 532       480         465
Long-term provisions                2 426       2 224       2 310
Deferred taxation                   3 316       3 441       3 474
Current liabilities                 4 691       3 001       4 381
Interest bearing short-term debt    908         2 407       1 056
Total equity and liabilities        32 607      28 589      29 568
Property, plant and equipment       19 657      19 012      19 247
Goodwill                            108         79          141
Other long-term assets              1 806       1 208       1 282
Cash funds                          1 132       797         506
Other current assets                9 904       7 493       8 392
Total assets                        32 607      28 589      29 568
Net asset value per share (cents)   3 157       2 791       3 069
Net loans to permanent capital
holders' interest (%)               6,7         12,3        5,7
Number of ordinary shares in
issue (million) 1                   622,0       606,7       579,0
Weighted average number of
ordinary shares in issue
(million) 1                         626,9       662,8 2     660,8 2
Capital expenditure for the period
(R million)                         1 880       815         1 992
Capital expenditure authorised
(R million)                         6 173       3 665       6 682
1 After share buyback programme
2 Fully diluted
Consolidated cash flow statement
                                    Half-year   Half-year   Year
                                    ended       ended       ended
                                    25.12.2000  25.12.1999  25.06.2000
                                    R million   R million   R million
Cash flow from operations           6 580       3 429       8 502
Investment income                   107         69          203
Movement in working capital         (1 040)     (562)       (870)
Cash generated by operating
activities                          5 647       2 936       7 835
Finance costs paid                  (169)       (198)       (387)
Taxation paid                       (1 608)     (555)       (1 209)
Cash available from operating
activities                          3 870       2 183       6 239
Distribution to permanent
capital holders                     (785)       (565)       (1 114)
Cash retained from operating
activities                          3 085       1 618       5 125
Acquisition of fixed assets         (1 880)     (815)       (1 992)
Acquisition of businesses           (138)       (2 735)     (2 827)
Other movements                     (513)       24          127
Increase in funding requirements    554         (1 908)     433
Share capital issued                18          13          16
Share buyback programme             (748)       -           (1 290)
Movement in:
Outside shareholders' interest      (35)        (10)        (11)
Long-term liabilities               1 021       (17)        4
Short-term loans                    (189)       1 911       546
Increase/(decrease) in cash         621         (11)        (302)
Cash funds at beginning of period   506         808         808
Translation of foreign entities     5           -           -
Cash funds at end of period         1 132       797        506
Increase/(decrease) in cash         621         (11)       (302)
Adoption of International Accounting Standards
International accounting era begins . . . . The Group adopted the International
Accounting Standards (IAS) for the first time during the half-year. The
financial statements above have been prepared as if they had always been
prepared in accordance with these standards and interpretations effective for
the period of first-time application.       Comparative figures have been
restated where appropriate. Full details of all the accounting policy changes
will be disclosed in the Group's 2001 annual financial statements.
                       The effect on earnings attributable to permanent capital
holders is insignificant. The effect is a reduction in earnings attributable of
R49 million for first half of the 2001 financial year compared to reduction of
R22 million for first half of 2000.                     Adjustments made to
comply with IAS . . . . Adjustments were made to goodwill, asset values and
depreciation in terms of the IAS statement on business combinations, which
requires that net assets are valued at fair value at acquisition.
Sasol is obliged to perform rehabilitation in certain instances. Provision for
the estimated future costs of rehabilitation have been recognised and a portion
capitalised into fixed assets.               Certain provisions in respect of
plant turnaround and irregular mine expenditure have been reversed in line with
IAS, as no legal or constructive obligation existed at balance sheet date.
Major expenditure on capital renewal is capitalised when additional future
economic benefits are created.
All post-retirement medical liabilities have been recognised in terms of the
IAS statement on provisions.
The employer's reserve in the pension fund has been recognised as an asset due
to the institution of a contribution holiday.
Open futures are marked to market and all gains and losses are recognised in
the income statement. Previously, this was not accounted for separately.
Dividends payable are recognised as a liability in the period in which they are
declared. The charge for dividends and related STC, declared after balance
sheet date, have been reversed.
Profit outlook and dividend
Strong performance expected
Good outlook for year-end profit . . . . The majority of the Group's core
operations are performing well in mostly buoyant markets. Profits for the
second half are expected to match, if not exceed that of the first half of the
2001 financial year.
These factors, that are likely to influence the results of the second half,
include: crude oil and chemical prices; continuing plant stability assisted by
certain additional gains in human and plant productivity; the introduction of
new products and expanded product volumes into the domestic and international
markets; continuation of further cost-cutting initiatives and the integration
of the Condea operations into SCI from 1 March 2001, and fluctuations in
Declaration of interim dividend No 43
The directors of Sasol Limited have declared an interim dividend of 140 cents
per share (1999: 83 cents per share) for the six months to 25 December 2000.
The dividend is declared in the currency of the Republic of South Africa and
will be payable to shareholders registered in the books of the company at the
close of business on Friday, 23 March 2001. Dividend cheques in payment of this
dividend will be posted to shareholders on or about 26 April 2001. Electronic
payment of the dividend will be undertaken simultaneously.
Notice of any change of address of shareholders must reach the transfer
secretaries, Mercantile Registrars Limited, PO Box 1053, Johannesburg 2000, on
or before 23 March 2001.
By order of the board
N L Joubert
Company secretary
7 March 2001
Sasol Limited
Company registration number: 1979/003231/06
Incorporated in the Republic of South Africa
Registered office
1 Sturdee Avenue  Rosebank
Johannesburg 2196
P O Box 5486
Johannesburg 2000
Transfer secretaries
Mercantile Registrars Limited
First National House
11 Diagonal Street
Johannesburg 2001
PO Box 1053  Johannesburg 2000
Website   http://www.sasol.com
Directors: P du P Kruger (Chairman), P V Cox (Chief executive officer and
managing director), E le R Bradley, W A M Clewlow, B P Connellan, L P A Davies
(Executive director), J H Fourie (Executive director),   R Havenstein
(Executive director), S Montsi, J E Schrempp (German)    and C B Strauss
The presentation to analysts on these results by Mr P Cox is available on the
Sasol website www.sasol.com

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