Sasol Limited - Updated Trading Announcement Release Date: 08/08/2003 16:40:39 Code(s): SOL
Sasol Limited - Updated Trading Announcement
Share code: SOL
In its Interim Profit Announcement published on 11 March 2003, Sasol advised it
was likely that attributable earnings for the full financial year ending 30 June
2003 would be less than those of the previous financial year. Reference was made
to wide-spread uncertainty in global markets and the slowing down of the world"s
major economies, as well as the unexpected further strengthening of the Rand.
With respect to its chemicals portfolio, Sasol referred to some of these
businesses being exposed to serious margin pressures because of intense
competition and higher energy-related feedstock costs.
In subsequent months and contrary to in-house expectations and those of many
economists and financial institutions, the Rand continued to strengthen with a
corresponding adverse impact on trading revenues and translation effects.
Furthermore, chemical margins particularly in Europe and North America were
burdened by intensified pressure and reduced to very low levels and, in some
cases, losses. Consequently, on 6 June 2003, Sasol issued a trading announcement
cautioning that on the basis of prevailing assumptions it anticipated its
attributable earnings for the financial year ending 30 June 2003 to be of the
order of 22% below those of the previous financial year.
At the end of June, the closing Rand/US$ exchange rate of R7,50 : US$1,00 was
significantly stronger than an expected rate of R8,28 : US$1,00 that was used
when the trading announcement was made earlier in June. This has resulted in
further adverse currency effects of some hundreds of millions of Rands. Because
of these effects, and consistent with the earlier announcements that earnings
for the full financial year will be less than those of the previous year, Sasol
currently anticipates its attributable earnings on a comparable basis to be
approximately 26% lower for the financial year that ended on 30 June 2003.
This estimate has been calculated using the same International Accounting
Standards (IAS) used in the financial year preceding the financial year that
ended on 30 June 2003.
However, standardizing the accounting treatment of borrowing costs under
International Accounting Standards (IAS) and United States Generally Accepted
Accounting Principles (US GAAP), will result in a positive effect on
attributable earnings, resulting in attributable earnings calculated on a
comparable basis being about 22% lower than the previous reporting period.
The Independent Accountants Report on the profit estimate is available for
inspection at the offices of Sasol Limited.
It is still anticipated that the total dividend for the year ending 30 June 2003
will be the same as in the previous financial year, which will be within the
Group"s targeted dividend cover range of 2,5 to 3,5.
Forward-looking statements disclaimer
In this announcement we have made certain statements that are not historical
facts and relate to analyses and other information based on forecasts of future
results and estimates of amounts not yet determinable. These are forward-
looking statements as defined in the U.S. Private Securities Litigation Reform
Act of 1995. Words such as "believe", "expect", "will" 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 predictions,
forecasts, projections and other forward-looking statements will not be
achieved. If one or more of these risks materialize, or should underlying
assumptions prove incorrect, actual results may be very different from those
anticipated. The factors that could cause our actual results to differ
materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements are discussed more fully in our
registration statement under the Securities Exchange Act of 1934 on Form 20-F
filed on March 6, 2003 and in other filings with the United States Securities
and Exchange Commission. 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
Sponsor: Deutsche Securities (SA) (Pty) Ltd
Date: 08/08/2003 04:40:44 PM Supplied by www.sharenet.co.za
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