Go Back Email this Link to a friend

Sasol Limited - Audited provisional report and declaration of dividend number 48

Release Date: 30/09/2003 07:00:03      Code(s): SOL
Sasol Limited - Audited provisional report and declaration of dividend number 48
for the year ended 30 June 2003                                                 
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
Share codes:   JSE -  SOL                                                       
               NYSE - SSL                                                       
ISIN: ZAE000006896                                                              
Audited provisional report and declaration of dividend number 48 for the year   
ended 30 June 2003                                                              
Reaching new frontriers                                                         
Clear direction in stormy seas                                                  
Sasol is an integrated oil and gas company with substantial chemical interests. 
Sasol is listed on the JSE Securities Exchange South Africa and on the New York 
Stock Exchange.                                                                 
Strong rand results in adverse currency effects - R4,2 billion                  
Excluding currency effects operating profit up by 9%                            
Including currency effects operating profit and attributable earnings down by   
19% and 20%                                                                     
Severe margin pressures in chemical businesses                                  
Total dividend held at 450 cents                                                
Five year growth targets met and major capital projects on track                
A billion is defined as one thousand million.                                   
The consolidated financial statements of Sasol Limited are presented on a       
summarised basis.                                                               
Balance sheet at                                                                
30 June 2002   2003                                    2003      2002           
Restated  Restated       
US$m      US$m                                         Rm        Rm             
3 744      5 652    Property, plant and equipment      42 363   38 453          
(50)       (42)   Goodwill and negative goodwill       (314)    (518)         
  181        274    Intangible assets                   2 051    1 854          
   48         60    Retirement benefit assets             451      497          
  186        263    Other long-term assets              1 971    1 915          
4 109      6 207    Non-current assets                 46 522   42 201          
  878      1 167    Inventories                         8 748    9 013          
1 024      1 399    Trade and other receivables        10 486   10 515          
   22          2    Short-term financial assets            12      232          
367        514    Cash                                3 851    3 769          
2 291      3 082    Current assets                     23 097   23 529          
6 400      9 289    TOTAL ASSETS                       69 619   65 730          
EQUITY AND LIABILITIES                                                          
3 050      4 472    Total shareholders" equity         33 518   31 315          
   26         40    Minority interest                     300      272          
  528        611    Long-term debt                      4 581    5 427          
  282        332    Long-term provisions                2 486    2 892          
271        345    Retirement benefit obligations      2 589    2 778          
    6         13    Long-term deferred income              96       65          
  590        816    Deferred tax                        6 113    6 062          
1 677      2 117    Non-current liabilities            15 865   17 224          
338        865    Short-term debt                     6 481    3 474          
1 136      1 359    Other current liabilities          10 187   11 671          
  173        436    Bank overdraft                      3 268    1 774          
1 647      2 660    Current liabilities                19 936   16 919          
6 400      9 289    TOTAL EQUITY AND LIABILITIES       69 619   65 730          
Income statement                                                                
for the year ended 30 June                                                      
2002       2003                                        2003      2002           
Restated  Restated       
US$m      US$m                                         Rm        Rm             
 5 882    7 148     Turnover                            64 555   59 590         
                    Cost of sales and services                                  
(3 436)  (4 356)    rendered                           (39 347) (34 812)        
 2 446    2 792     Gross profit                        25 208   24 778         
   122       67     Non-trading income                     604    1 241         
                    Marketing and distribution                                  
(422)    (551)    expenditure                         (4 977)  (4 273)        
  (407)    (488)    Administrative expenditure          (4 407)  (4 125)        
  (335)    (312)    Other operating expenditure         (2 809)  (3 394)        
                    Operating profit before                                     
1 404    1 508     translation (losses)/gains          13 619   14 227         
    55     (189)    Translation (losses)/gains          (1 708)     556         
 1 459    1 319     Operating profit                    11 911   14 783         
                    Dividends and interest                                      
23       18     received                               167      230         
     3        7     Income from associates                  60       31         
   (28)     (25)    Borrowing costs                       (225)    (284)        
 1 457    1 319     Net income before tax               11 913   14 760         
(484)    (444)    Taxation                            (4 007)  (4 905)        
   973      875     Net income after tax                 7 906    9 855         
    (4)     (10)    Minority interest                      (89)     (38)        
   969      865     Attributable earnings                7 817    9 817         
Basic earnings per share (cents)                            
   158      142     - attributable earnings basis        1 283    1 603         
   158      142     - headline earnings basis            1 280    1 597         
                    Diluted earnings per share (cents)*                         
155      140     - attributable earnings basis        1 262     1 571        
   154      139     - headline earnings basis            1 259     1 565        
                    Dividends per share (cents)                                 
    20       27     - interim                              215       200        
24       31     - final**                              235       250        
    44       58                                            450       450        
                    *Taking the Sasol Share Incentive                           
                    Scheme into account.                                        
**Subject to exchange rate ruling                           
                    on payment date. The US dollar                              
                    convenience translation is                                  
                    calculated on a line-by-line basis                          
in accordance with IFRS.                                    
Cash flow statement                                                             
for the year ended 30 June                                                      
                                                 2003      2002                 
                                                 Rm        Rm                   
Cash receipts from customers                     64 696    60 049               
Cash paid to suppliers and employees            (48 699)  (40 592)              
Cash generated by operating activities           15 997    19 457               
Investment income                                   178       247               
Borrowing costs paid                             (1 286)     (863)              
Dividends paid                                   (2 835)   (2 325)              
Tax paid                                         (5 527)   (4 749)              
Cash available from operating activities          6 527    11 767               
Additions to property, plant and equipment      (10 272)   (7 945)              
Acquisition of businesses                          (155)     (565)              
Sasol Chemie purchase price reduction                 -       341               
Cash acquired on acquisition of businesses          119        35               
Other net expenditure in investing activities      (413)     (295)              
Cash utilised in investing activities           (10 721)   (8 429)              
Share capital issued                                 77        76               
Share buyback programme                            (185)   (1 020)              
Dividends paid to minority shareholders             (65)      (76)              
Increase/(decrease) in long-term debt               122    (2 457)              
Increase/(decrease) in short-term debt            3 088      (962)              
Cash effect of financing activities               3 037    (4 439)              
Decrease in cash and cash equivalents            (1 157)   (1 101)              
Cash and cash equivalents                                                       
- opening balance                                 1 995     2 370               
- arising on translation                           (255)      726               
Cash and cash equivalents at end of year            583     1 995               
- cash                                            3 851     3 769               
- bank overdraft                                 (3 268)   (1 774)              
                                                    583     1 995               
Changes in equity statement                                                     
for the year ended 30 June                                                      
                                                 2003      2002                 
                                                 Rm        Rm                   
Opening balance                                            22 217               
Effect of change in accounting policy                         920               
Restated opening balance                         31 315    23 137               
Shares issued                                        77        76               
Shares purchased                                  (185)   (1 020)               
Attributable earnings for the year               7 817     9 817                
Dividends paid                                  (2 835)   (2 325)               
(Decrease)/increase in foreign currency                                         
translation reserve                             (2 570)    1 869                
Increase in non-trading financial                                               
assets reserve                                       -         2                
Decrease in cash flow hedge accounting                                          
reserve                                          ( 101)    ( 241)               
Closing balance                                 33 518    31 315                
Share capital                                    2 783     2 706                
Share buyback programme                         (3 614)   (3 429)               
Accumulated earnings                            35 041    30 059                
Foreign currency translation reserve              (352)    2 218                
Non-trading financial assets reserve                 2         2                
Cash flow hedge accounting reserve                (342)     (241)               
Total shareholders" equity                      33 518    31 315                
Value added statement                                                           
for the year ended 30 June                                                      
2003      2002                 
                                                 Rm        Rm                   
Turnover                                         64 555    59 590               
Purchased materials and services                (39 066)  (32 820)              
Value added                                      25 489    26 770               
Investment income                                   227       261               
Wealth created                                   25 716    27 031               
Employees                                         9 055     7 921               
Providers of equity capital                       2 924     2 363               
Providers of loan capital                           225       284               
Government                                        3 651     4 669               
Reinvested in the group                           9 861    11 794               
Wealth distribution                              25 716    27 031               
Salient features                                                                
                                                 2003      2002                 
Selected ratios                                                                 
Return on equity                       %          24,1      36,1                
Return on total assets                 %          17,9      25,7                
Operating margin                       %          18,5      24,8                
Borrowing cost cover                   times       9,4      17,4                
Dividend cover   times                             2,9       3,5                
Share statistics                                                                
Total shares in issue                  million   668,8     666,9                
Treasury shares                                                                 
(share buyback programme)              million    59,7      57,9                
Weighted average number of shares     million    609,3     612,5                
Fully diluted number of shares        million    619,6     625,0                
Share price (closing)                 cents      8 355    11 000                
Market capitalisation                 Rm        55 878    73 359                
Net asset value per share             cents      5 503     5 142                
Other financial information                                                     
Total debt (including bank overdraft)                                           
-  interest bearing                    Rm        14 289    10 579               
-  non-interest bearing                Rm            41        96               
Capital commitments                                                             
-  authorised and contracted           Rm         9 562     7 430               
-  authorised, not yet contracted      Rm         8 510    16 632               
Guarantees and contingent                                                       
liabilities                           Rm        18 358    10 114                
Significant items in operating profit                                           
-  employee costs                      Rm         9 055     7 921               
-  depreciation of property, plant                                              
and equipment                         Rm         4 468     4 221                
-  operating lease charges             Rm           378       369               
Directors" remuneration               Rm            29        23                
Share options granted to directors -                                            
cumulative                            "000       1 450     1 508                
Effective tax rate                    %           33,6      33,2                
Number of employees                   number    31 150    31 100                
Average crude oil price -                                                       
Dated Brent                           US$/bbl    27,83     23,24                
Reconciliation of headline earnings                                             
Attributable earnings                            7 817     9 817                
   Impairment of assets                             83       145                
Loss on disposal of assets                       90        46                
   Scrapping of property, plant                                                 
     and equipment                                  69        52                
   Amortisation of goodwill                         42        33                
Amortisation of negative goodwill              (301)     (282)               
   Tax effect of reconciling items                  (2)      (30)               
Headline earnings                                7 798     9 781                
The reader is referred to the definitions contained in the 2002 annual report.  
Financial overview                                                              
For the 2003 financial year, operating profit before currency translation       
effects decreased by 4% from R14 227 million to R13  619 million compared to the
last financial year. After currency translation effects, operating profit       
decreased by 19% from R14  783  million to R11 911 million. Attributable        
earnings and earnings per share decreased by 20% from R9 817 million to R7  817 
million and from 1 603 cents to 1 283 cents respectively. During the year the   
group changed its accounting policy with respect to borrowing costs. Excluding  
the effect of this change, attributable earnings and earnings per share on a    
comparable basis decreased by 24% from R9 496 million to R7 174 million and from
1 550 cents to 1  177 cents respectively.                                       
International oil prices were on average 14% higher than in the previous        
financial year. The following, however, more than offset this benefit and were  
the main causes of the decrease in basic attributable earnings:                 
*    the strengthening of the rand-US$ exchange rate from an average of         
     R10,13:US$ 1 in the previous reporting period to R9,03:US$ 1 (R1,9         
billion), and from a closing rate at 30 June 2002 of R10,27:US$ 1 to       
     R7,50:US$1 (R2,3 billion) at 30 June 2003. The total adverse impact on     
     operating profit of these currency effects amounted to R4,2 billion,       
     the depressed margins of various chemicals and in particular alkylates, and
the losses arising from the extended Natref shutdown and unforeseen        
     problems and delays experienced with the refinery expansion project.       
*    Other than Sasol Olefins & Surfactants and Sasol Oil, the group performed  
     reasonably well in difficult global trading conditions that were           
exacerbated by the effects of the Middle East war and the SARS virus in    
Sasol"s plants world-wide ran well and customers" requirements were met.        
Pleasing improvements were made in safety, environmental and risk management.   
Capital expenditure incurred amounted to R11 billion. Major projects advanced or
completed during the year include:                                              
*    the pioneering gas-to-liquid (GTL) fuels projects in Qatar and Nigeria,    
*    the Mozambique gas project which will bring natural gas for the  first time
to the industrial heartland of South Africa, and                           
*    the n-butanol and acrylic acid and acrylates projects at Sasolburg.        
At 30 June 2003, gearing (total debt less cash as a percentage of  shareholders"
equity) amounted to 33% which was within the company"s targeted range of 20% to 
40%. In response to the group"s capital expansion programme and debt-funding    
requirements, the group"s gearing target-range was increased to 30% - 50% during
the year. This decision followed substantial research and stress-testing of     
Sasol"s balance sheet and business plans.                                       
The total dividend declared of R4,50 is equivalent to that of the previous      
reporting period and reflects a dividend cover of 2,9.                          
Notable achievements during the year included Sasol"s improved credit rating by 
international agency Standard and Poor"s, and the successful secondary listing  
of Sasol on the New York Stock Exchange.                                        
Sasol mining                                                                    
Lower international coal prices and the stronger rand adversely impacted on     
Sasol Mining"s export revenues resulting in operating profit decreasing by 4%   
from R1 335 million to R1 277 million.                                          
Various productivity improvements were again achieved as a continuation of Sasol
Mining"s business renewal initiatives. Machine and per-capita productivity      
improved by 9% and 3% respectively and increases in cash costs per ton were     
contained to 4%, which is within the South African Producer Price Index (PPI)   
rate of inflation.                                                              
Sasol Mining was recognised for its successes and business stature when it      
received the International Coal Company of the Year Award at the 2002           
Platts/Business Week Global Energy Awards in New York.                          
Sasol synfuels                                                                  
Sasol Synfuels advanced its business renewal initiatives launched in  the mid-  
1990s and maintained turnover at the record levels achieved in the 2002         
financial year. The benefit of higher international crude oil prices was mostly 
offset by the impact of a  stronger rand resulting in operating profit          
increasing slightly to R8  048 million.                                         
An initiative was advanced in partnership with Sasol Technology and Sasol Oil to
ensure compliance with the new fuel specifications that are expected to become  
mandatory in South Africa in 2006. It is estimated that about R7 billion will be
invested to modify the liquid fuel refining and blending operations and to      
construct new plants to increase the octane rating of Secunda"s synthetic       
This project will liberate significant further quantities of monomer feedstock  
which will enable Sasol Polymers to progress with value-adding polymer expansion
Sasol oil and gas                                                               
Operating profit reduced by 39% from R2 021 million to R1 223 million. The      
benefit of higher oil and fuel prices as well as higher gas sales was more than 
offset by the impact of a stronger rand and losses arising from the Natref      
shutdown (R200 million) and difficulties experienced with the Natref expansion  
project (R200 million). The plant has since operated satisfactorily and record  
production levels have been achieved.                                           
The introduction of the new Basic Fuel Price (BFP) mechanism in  April 2003 to  
replace the in-bond landed cost (IBLC) pricing formula had minimal effect on    
Negotiations have progressed with other oil companies to conclude new supply    
agreements to replace the Main Supply Agreement, which expires on 31 December   
Preparation for the introduction of natural gas from Mozambique into South      
African markets is progressing well.                                            
Sasol"s chemical businesses                                                     
Sasol olefins and surfactants (O&S)                                             
The depressed global economy and significant margin pressures caused by lower   
product prices and higher feedstock costs resulted in operating profit reducing 
by 95% from euro 133 million to euro 7 million. In rand terms, operating profit 
reduced from R1 207 million to R67 million.                                     
The performance of the alkylates business was particularly disappointing. Linear
alkylbenzene (LAB) selling prices came under pressure because of surplus global 
capacity. Kerosene and benzene feedstock costs increased to an all-time high.   
Low capacity utilisation at Sasol"s LAB plants led to the suspension of         
production at the Porto Torres LAB facility in Italy and a 30% reduction of the 
workforce of the LAB plant at Baltimore in the  USA.                            
While the monomers business within Sasol O & S also had disappointing results   
primarily because of low co-monomer prices, all other businesses in Sasol O & S 
achieved satisfactory performances in Euro, but in rand terms were adversely    
affected by the stronger rand.                                                  
Various businesses in the chemical portfolio are being scrutinised and reviewed 
to ensure strategic fit and the ability to meet financial performance targets on
a sustainable basis. Certain businesses and product groups are being considered 
for rationalisation, potential disposal and/or an intensified process of  cost  
reduction and productivity improvement.                                         
Sasol polymers                                                                  
Turnover increased by 12% from R5 580 million to R6 245 million. Higher         
feedstock costs and rand appreciation resulted in operating profit decreasing by
3% from R913  million to R890 million. A focus on continuous improvement was    
maintained and the business increased per capita production by 9%.              
Plant operations remained stable with some units achieving production records.  
The polyethylene plant in Malaysia overcame start-up problems experienced during
the first half of the financial year and by year-end was running at full        
Sasol Polymers Germany entered into a joint venture with the National           
Petrochemical Company of Iran to construct and operate an integrated world-scale
ethylene and polyethylene complex in Iran.                                      
Sasol solvents                                                                  
The benefits of cost-cutting initiatives and record turnover resulted in Sasol  
Solvents increasing its operating profit before translation effects by 3% from  
R704 million to R728 million. The rand"s appreciation, however, resulted in a   
45% decrease in operating profit after translation effects from R786 million to 
R436 million.                                                                   
Most business units performed to expectations and contributed satisfactorily to 
profits. Closer collaboration with Sasol O&S world-wide is yielding even more   
operational synergies which, together with the establishment of various shared  
services, will contribute to further reduce costs.                              
Sasol wax                                                                       
Sasol Wax achieved satisfactory results during the year despite aggressive      
competition and margin pressures caused by higher oil prices. Operating profit  
increased by 33% from R175 million to R233 million. Demand for Fischer-Tropsch  
waxes produced at Sasolburg was buoyant while competition from Chinese wax      
producers resulted in margins for  commodity waxes eroding in European markets. 
Sasol nitro                                                                     
In a year characterised by higher demand for fertilisers and lower demand for   
explosives, Sasol Nitro performed reasonably well. Rand appreciation and        
increased logistics costs partly offset the benefit of higher fertiliser prices 
resulting in operating profit decreasing by 23% to R414 million. Cash cost      
increases were contained to well within the PPI rate of inflation.              
During the year a decision was taken to divest from Sasol Nitro"s               
underperforming explosives businesses in the USA and Canada resulting in a      
further impairment cost of R158 million.                                        
Sasol petroleum international                                                   
The development of the Mozambique gas fields at Temane and Pande progressed     
satisfactorily during the year. It is currently estimated that Sasol has access 
to Mozambican gas reserves of about 3,2 trillion cubic feet (tcf), or more than 
500 million barrels of oil equivalent.                                          
Sasol synfuels international                                                    
Sasol"s ambition to pioneer new-generation GTL conversion technology in selected
gas-rich regions advanced during the year. Through the joint venture with Qatar 
Petroleum work commenced on the construction of the plant at Ras Laffan, Qatar. 
In November 2002, non-recourse financing amounting to US$ 700 million was       
successfully arranged for the project. The engineering, procurement and         
construction (EPC) contract was awarded in December 2002. The plant is expected 
to be ready for commissioning before the end of December 2005.                  
The Sasol Chevron joint venture (between Sasol and ChevronTexaco) made progress 
with the full-scale design of the  GTL plant to be built in Nigeria. It is      
envisaged that the EPC contract will be awarded during 2004 and commissioning of
the  plant is expected during 2007.                                             
Profit outlook                                                                  
International chemical prices are predicted to drift upwards or remain unchanged
and margins should improve because average oil prices in the 2004 financial year
are expected to be lower than in the past year. A dominating influence on       
overall financial performance is, however, expected from the rand"s             
relationships with major currencies. If the prevailing strength of the rand     
persists, it is unlikely that rand earnings in the new financial year will match
those of the 2003 financial year.                                               
Looking ahead, the group is poised to enter its next growth phase which will be 
spearheaded by the rollout of the GTL ventures over the next few years. This    
will be supported by both the harvesting of returns from our chemical           
investments and continuing major contributions from our mining, oil and gas and 
synthetic fuels businesses.                                                     
Corporate governance                                                            
Following its listing on the New York Stock Exchange (NYSE) on 9  April 2003 and
the publication of new listings requirements by the JSE Securities Exchange     
South Africa (JSE) effective from 1  September 2003, the group had the          
opportunity to review its corporate governance practices comprehensively. Sasol 
complies, to the extent required, with the new JSE Listings Requirements, as    
well as the comprehensive US governance standards recently augmented by rules   
adopted by the NYSE and the US Securities Exchange Commission in consequence of 
the Sarbanes-Oxley Act. The group subscribes to, affirms its commitment to and  
complies, in all material respects with the principles of the Code on Corporate 
Practices and Conduct as contained in the second King Report on Corporate       
Governance for South Africa. All the key principles underlying responsible and  
effective corporate governance practices and conduct are reflected in Sasol"s   
corporate governance structures and practices.                                  
Declaration of final dividend number 48                                         
The directors of Sasol Limited have declared a final dividend of 235 cents per  
share (2002: 250 cents per share) for the year to 30 June 2003. The dividend has
been declared in the currency of the Republic of South Africa.                  
Trading in the STRATE environment requires settlement within five business days.
In accordance with the settlement procedures of STRATE, the following dates will
apply to the final dividend:                                                    
Last day for trading to qualify                                                 
for and participate in the final                                                
dividend (cum dividend)                  Friday, 3 October 2003                 
Trading ex dividend commences            Monday, 6 October 2003                 
Record date                              Friday, 10 October 2003                
Dividend payment date                                                           
(electronic and certificated                                                    
register)                                Monday, 13 October 2003                
Dividend cheques in payment of this dividend to certificated shareholders will  
be posted to shareholders on or about Monday, 13 October 2003. Electronic       
payment to certificated shareholders will be undertaken simultaneously.         
Shareholders who have dematerialised their share certificates will have their   
accounts, at their Central Securities Depository Participant or Broker credited 
on Monday, 13 October 2003.                                                     
In the case of certificated shareholders, notice of any change of address of    
shareholders must reach the transfer secretaries, Computershare Limited, on or  
before Friday, 3 October 2003. Share certificates may not be dematerialised or  
rematerialised between Monday, 6  October 2003 and Friday, 10 October 2003, both
days inclusive.                                                                 
On behalf of the board                                                          
P du PKruger                                                                    
P VCox                                                                          
Deputy chairman and chief executive                                             
Sasol Limited                                                                   
5 September 2003                                                                
Report of the independent auditors                                              
To the members of Sasol Limited                                                 
The summarised consolidated financial statements of Sasol Limited have been     
derived from the audited consolidated financial statements, prepared in         
accordance with South African Statements of Generally Accepted Accounting       
Practice, International Financial Reporting Standards and in the manner required
by the Companies Act in South Africa, of the company for the year ended 30 June 
2003. We have audited the consolidated financial statements in accordance with  
statements of South African Auditing Standards. In our report dated 5 September 
2003, we expressed an unqualified opinion on the consolidated financial         
statements from which the summarised consolidated financial statements were     
Audit opinion                                                                   
In our opinion, the accompanying summarised consolidated financial statements   
are consistent, in all material respects, with the audited consolidated         
financial statements from which they were derived and are prepared in accordance
with the presentation and disclosure requirements of South African Statements of
Generally Accepted Accounting Practice, International Financial Reporting       
Standards and the requirements of the Companies Act in South Africa.            
For a better understanding of the scope of our audit and the company"s          
consolidated financial position, results of operations and cash flows, the      
summarised consolidated annual financial statements should be read in           
conjunction with our audit report included in the consolidated financial        
statements from which the summarised consolidated financial statements were     
KPMG Inc                                                                        
Registered Accountants and Auditors                                             
Chartered Accountants (SA)                                                      
5 September 2003                                                                
2002      2003                                   2003      2002                 
Restated                                                   Restated             
    Turnover                                     Operating profit               
      Rm          Business unit                         Rm                      
1 239    1 013     Sasol Mining                   1 277     1 335              
12 620   13 643     Sasol Synfuels                 8 048     8 030              
 6 414    8 507     Sasol Oil and Gas              1 223     2 021              
39 023   41 030     Sasol"s chemicals businesses   2 240     3 681              
19 129   19 543     Sasol Olefins and Surfactants     67     1 207              
 5 580   6  245     Sasol Polymers                   890       913              
 5 666    5 950     Sasol Solvents                   436       786              
 3 840    4 663     Sasol Wax                        233       175              
3 984    3 810     Sasol Nitro                      414       535              
   824      819     Other chemicals                  200        65              
   294      362     Other                           (635)      (41)             
59 590   64 555                                   12 153    15 026              
Capital items                     (242)     (243)             
59 590   64 555                                   11 911    14 783              
    Turnover        Geographic analysis             Operating profit            
26 735   31 136     South Africa                   10 896    12 115             
2 079    1 959     Rest of Africa                     15        12             
16 390   17 149     Europe                            781     1 491             
                    Middle East, India and                                      
 3 208    3 710     Far East                          453       510             
9 514    8 809     North America                    (229)      528             
   675      697     South America                       7        63             
   989    1 095     Southeast Asia                    (12)       64             
                                                   11 911    14 783             
Notes to the financial statements                                               
Basis of preparation and accounting policies                                    
The summarised consolidated financial statements have been prepared in          
compliance with the Listings Requirements of the JSE Securities Exchange South  
Africa, in accordance with International Financial Reporting Standards (IFRS)   
and the requirements of the South African Companies Act, 1973, as amended.      
The accounting policies applied in the presentation of the group"s summarised   
consolidated financial statements for the year ended 30 June 2003 are consistent
with those applied in the previous year except for the change in accounting     
policy to capitalise borrowing costs.                                           
These summarised consolidated financial statements have been prepared in        
accordance with the historic cost convention except for certain financial       
instruments which are stated at fair value.                                     
The principal reporting currency of the Sasol group is rand. This currency      
reflects the economic substance of the underlying events and circumstances of   
the group. US$ figures are presented for the balance sheet and income statement 
for convenience purposes only. Other US$ figures are not presented as they are  
not considered to be meaningful.                                                
The summarised consolidated financial statements as published on 8 September    
2003 have been amended by reclassifying R654 million out of current liabilities 
to current assets, thus reducing current liabilities and current assets by the  
same amount. This amendment had no material effect on the financial position,   
performance or cash flows.                                                      
Change in accounting policy                                                     
During the year, the group changed its accounting policy to the allowed         
alternative treatment of the IFRS standard on Borrowing Costs - IAS23. This     
treatment requires the capitalisation of borrowing costs to certain qualifying  
assets during construction. The group"s external debt has increased materially  
over the past three financial years and is used primarily to finance the group"s
capital expansion programme. It was thus considered appropriate to capitalise   
borrowing costs to certain qualifying assets rather than to expense it as       
Comparative figures have been restated as if they had always been prepared in   
accordance with this policy.                                                    
The effect of the change in accounting policy is as follows:                    
                                                     2003     2002              
Rm       Rm                
Increase in depreciation expense                      (142)    (112)            
Reduction in borrowing costs                         1 061      579             
Tax effect                                            (276)    (136)            
Minority interest                                        -      (10)            
Net increase in attributable earnings                  643      321             
Increase in opening accumulated earnings             1 241      920             
Related party transactions                                                      
During the year, the group, in the ordinary course of business, entered into    
various sale and purchase transactions with related parties. The group enters   
into these transactions on an arm"s length basis at market rates.               
Post-balance sheet events                                                       
Sasol successfully issued a R 2 000 million corporate bond on 1 September 2003. 
The maturity date of the bond is 1 September 2007. Interest is charged at 10,5% 
per annum payable 1 March and 1 September each year.                            
On 11 July 2003 Sasol Italy S.p.A. acquired the remaining 48,05% shares in G.D. 
Portbury Limited (Dubai) trading as Sasol Gulf for a cash consideration of US$  
2,65 million (R20 million).                                                     
Anglo Operations Limited and Sasol Mining (Pty) Limited entered into an         
agreement to develop the Kriel South coal reserves in Mpumalanga province, South
Africa. Anglo Operations Limited will invest R769 million (US$ 96 million) and  
Sasol R320 million (US$ 40 million) in the project.                             
This Petroleum Products Amendment Bill aims to create a legislative framework   
for the governance of the fuel industry. In issuing wholesale licenses,         
wholesalers will be required to procure products made from coal, natural gas or 
vegetable matter before buying or selling products made from other raw          
The South African government has amended the Petroleum Pipelines Bill such as to
guarantee Natref"s supply of crude oil at its current capacity. This bill is of 
an enabling nature and provides for a pipeline authority that will be empowered 
to set tariffs for petroleum pipelines. The Bill does not specifically provide  
for a continued differentiation between the pipeline tariff for the transport of
crude-oil and that of refined products. A reduction in this differential would  
have an adverse effect on the refining margins of the Natref refinery. Until    
such time as a decision on tariffs has been taken, the impact on Sasol"s share  
in Natref cannot be ascertained.                                                
Principle foreign currency conversion rates                                     
One unit of foreign currency equals                    2003    2002             
Rand/US$ (closing)                                     7,50    10,27            
Rand/US$ (average)                                     9,03    10,13            
Rand/euro (closing)                                    8,63    10,19            
Rand/euro (average)                                    9,41     9,08            
Annual report: the annual report will be posted to shareholders and will be     
available on Sasol"s website on or about 20 October 2003.                       
In this report we make 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, relating, amother other things,  
to volume growth, increases in market share, total shareholder return and cost  
reductions. These are forward-looking statements as defined in the U.S. Private 
Securities Litigation Reform Act of 1995. Words such as "believe", "anticipate",
"expect", "intend", "seek", "will", "plan", "could", "may", "endeavor" and      
"project" and similar expressions are intended to identify such forward-looking 
statements, but are not the exclusive means of identifying such statements.     
Forward-looking statements involve inherent risks and uncertainties and, 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 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     
Registered Office                                                               
Sasol Limited,                                                                  
1 Sturdee Avenue,                                                               
Rosebank, Johannesburg 2196                                                     
PO Box 5486,                                                                    
Johannesburg 2000                                                               
Transfer Secretaries                                                            
Computershare Limited,                                                          
70 Marshall Street,                                                             
Johannesburg 2001                                                               
PO Box 1053,                                                                    
Johannesburg 2000,                                                              
South Africa                                                                    
Tel: +27 11 370-5000                                                            
Fax: +27 11 370 5271/2                                                          
P Du P Kruger (chairman), E Le R Bradley, W A M Clewlow, B P Connellan, M S V   
Qantsho, A Jain (Indian), S Montsi, S B Pfeiffer (USA), J E Schrempp (German),  
C B Strauss                                                                     
P V Cox (Deputy chairman and chief executive), L P A Davies (Executive          
director), J H Fourie (Executive director), T S Munday (Executive director)     
Company Secretary N L Joubert                                                   
Company Registration Number 1979/003231/06 Incorporated in the Republic of South
ISIN code: ZAE000006896                                                         
Share code: SOL                                                                 
American depository receipt (ADR) program                                       
Cusip number 543210 ADR to ordinary share 1:1                                   
The Bank of New York,                                                           
22nd floor, 101 Barclay Street,                                                 
New York, N.Y. 10286, U.S.A.                                                    
Information Agent Taylor Rafferty.                                              
Date: 30/09/2003 07:00:26 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.