SOL - Sasol Limited - Sasol hedges about 30% (oil equivalent) of its South Release Date: 01/08/2008 12:10:02 Code(s): SOL
SOL - Sasol Limited - Sasol hedges about 30% (oil equivalent) of its South
African synthetic fuels production
(Incorporated in South Africa)
(Registration number: 1979/003231/06)
ISIN Code: ZAE000006896
Share Code: SOL
NYSE Code: SSL
Sasol hedges about 30% (oil equivalent) of its South African synthetic fuels
Sasol has entered into hedging transactions (zero cost collars) for 16,425
million barrels of oil (equivalent to about 30% of its planned South African
synfuels production) for the remainder of the 2009 financial year.
The hedge will provide downside protection should monthly average dated Brent
crude oil prices decrease below US$90/ bbl (put level) on the hedged portion of
synfuels production. Conversely, Sasol will incur opportunity losses on the
hedged portion of production should monthly average oil prices exceed a volume
weighted average US$228 / bbl (call level). The hedge has been executed over a
four week period (commencing at the beginning of the new financial year, 1 July
2008) and due to the volatility of the oil price, call levels between US$195 /
bbl and US$253 / bbl were attained.
Similar to the synfuels hedge Sasol also entered into zero cost collars for 550
000 barrels of oil for its Sasol Petroleum International`s West African crude
oil output (representing about 30% of planned net output for financial year
2009). The levels attained were a put level of US$90 / bbl and a call level of
US$240 / bbl.
Sasol considers oil price hedging on an annual basis as part of its risk
management activity. In the light of very volatile oil prices, Sasol believes
that the hedge that has been entered into will mitigate the risk of any
substantial fall in oil prices.
Appropriate disclosure of these instruments will also be made in our 2008 annual
financial statements and Form 20-F.
1 August 2008
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Sasol may, in this document, make 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", "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.
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 21 November 2007 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 otherwise.
Date: 01/08/2008 12:10:02 Supplied by www.sharenet.co.za
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