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Sol - Sasol Limited - Financial Results For The Year Ended 30 June 2009

Release Date: 14/09/2009 07:05:03      Code(s): SOL
SOL - Sasol Limited - Financial Results For The Year Ended 30 June 2009         
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
ISIN: ZAE000006896        US8038663006                                          
Share codes: JSE - SOL    NYSE - SSL                                            
("Sasol" or "the group" or "the company")                                       
FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009                               
Delivering results in uncertain times                                           
cash generated by operating activities of R48 billion                           
excluding once-off charges, operating profit maintained                         
headline earnings per share down 33% to R25,42                                  
oil hedge cushions impact of sharp decline in oil prices                        
deleveraged balance sheet positions company well to fund growth                 
overall group production volumes up                                             
Oryx and Arya Sasol plants performing successfully                              
growth projects remain on course                                                
Overview                                                                        
Chief Executive, Pat Davies says:                                               
"Our deleveraged balance sheet and strong cash flows continue to serve the      
group well in weathering the storm and in funding our prioritised growth        
programme in tough credit markets. The global economic recession created        
opportunities for us to examine all our operations. Our response has, for       
instance, resulted in significant working capital improvements across our       
businesses, positively impacting the group`s cash position. This, together      
with our focus on efficiency and operational improvements is enhancing the      
group`s competitiveness. Our growth strategy remains unchanged and, despite     
the economic crisis, we have many opportunities which will provide for long-    
term, sustainable growth. We have acted swiftly to improve competition law      
compliance and will have completed our comprehensive group-wide review by       
December 2009."                                                                 
The global economic impacts and consequent weakening in the market for our      
products affected our results. Earnings attributable to shareholders for the    
year ended 30 June 2009 decreased by 39% to R13,6 billion from R22,4 billion    
in the previous financial year, while earnings per share and headline earnings  
per share decreased by 39% to R22,90 and by 33% to R25,42, respectively,        
compared to the prior year.                                                     
Operating profit of R24,7 billion declined by 27% compared to the previous      
financial year. Operating profit was negatively impacted by lower average       
crude oil prices (average dated Brent was US$68,14/barrel in 2009 compared to   
US$95,51/barrel in 2008) and chemical product prices, partially offset by a     
24% weaker average rand/US dollar exchange rate (R9,04/US$ in 2009 compared to  
R7,30/US$ in 2008). The average oil price achieved during the year was          
cushioned by the effect of the oil hedges during the year which resulted in a   
realised gain of R5 056 million. The decrease in operating profit was further   
impacted by large once-off charges including competition related fines of R3    
947 million, the Escravos gas-to-liquids (EGTL) provision of R1 280 million     
and the Inzalo share-based payment expense of R3 202 million. Excluding the     
impact of once-off charges, operating profit was maintained.                    
The increase in the effective tax rate is as a result of the competition        
related fines and the share-based payment expenses which are not deductible     
for tax purposes.                                                               
The increase in cash fixed costs, excluding the effects of once-off costs and   
growth initiatives, at 16% is well above inflationary levels. This increase     
resulted mainly due to the negative impact of a weaker exchange rate on our     
costs and the abnormal increase in electricity costs at our South African       
operations. Whilst we are able to generate nearly a third of our electricity    
requirements, the South African state owned electricity provider, Eskom,        
increased average annual electricity tariffs by 27,5% in June 2008.             
Cash of R48,2 billion generated by operating activities represents a 39%        
increase compared to the previous financial year. The increase is mainly due    
to significant working capital improvements.                                    
Chief Financial Officer, Christine Ramon says:                                  
"Our strong cash position was enhanced by the cash conservation approach        
instituted last October at the onset of the global economic crisis. We have     
reprioritised capital expenditure for the next two years to about R15 billion   
per annum. We continue to maintain a flexible approach to our capital           
expenditure programme, ensuring that our pipeline of growth projects is not     
affected, and our investment in growth continues unabated.                      
Signs of economic recovery are visible with improved market sentiment           
reflected in the uptick in oil and product prices. However, we remain cautious  
on the shorter term outlook for oil prices and product prices and continue to   
plan prudently for an extended period of global economic recovery."             
Sustained performance from our existing businesses                              
South African energy cluster                                                    
Sasol Mining - increased turnover despite lower sales volumes                   
Operating profit of R1 593 million was 14% higher than the previous year.       
While turnover increased due to higher coal prices achieved in the first half   
of the year, this was partially offset by lower sales volumes to Sasol          
Synfuels and to the coal export market coupled with higher operating costs per  
unit in light of lower production volumes.                                      
Sasol Gas - stable sales volumes at higher gas prices                           
Operating profit increased by 36% to R2 424 million compared to the previous    
year as a result of higher gas prices and stable sales volumes. Higher cash     
fixed costs were experienced due to a focus on safety initiatives and           
preparation for the commissioning of a new compressor station at Komatipoort.   
Sasol Synfuels - increased operating profit despite lower production volumes    
Sasol Synfuels` operating profits increased by 30% to R25 188 million, despite  
4,1% lower production volumes compared to the previous year as a result of      
instability in key plants. The increase in profits resulting from weaker        
exchange rates was, however, partially offset by lower average oil prices and   
significant feedstock price escalations. Included in the operating profit is a  
gain of R4 904 million relating to the oil hedge.                               
Sasol Oil - declining product prices resulting in losses                        
Sasol Oil recorded an operating loss of R351 million compared to an operating   
profit of R5 507 million for the prior year as a result of the steep decline    
in product prices on the back of fast falling crude oil prices. This resulted   
in negative stock effects and pressure on refining margins during the first     
half of the year. Improved performance in the latter part of the year did not   
fully offset the earlier losses.                                                
International energy cluster                                                    
Sasol Synfuels International (SSI) - successful production ramp up of Oryx GTL  
plant                                                                           
SSI reflected an operating loss of R235 million compared to an operating loss   
of R621 million in the previous year. This improvement was mainly due to the    
successful ramp up in production of the Oryx gas-to-liquids (GTL) plant,        
offset by higher study costs to assess the commercial viability of a number of  
opportunities together with a loss of R771 million realised on the reduction    
of our economic interest in the EGTL project. Following negotiations with       
Chevron Nigeria Limited, Sasol reduced its economic interest from 37,5% to 10%  
for which a consideration of R3486 million (US$360 million) was received. Due   
to uncertainties that have recently arisen from the fiscal arrangements for     
the project, management reassessed the impact on its commitments relating to    
the project. This resulted in a provision of R1 280 million being recognised.   
Sasol`s retained 10% economic interest in EGTL is now recognised as an          
investment in an associate.                                                     
Production at the Oryx GTL plant in Qatar increased steadily and the average    
daily production more than doubled since the previous year.                     
Sasol Petroleum International (SPI) - increasing upstream capacity              
Operating profit increased by 11% to R1 115 million compared to the previous    
year, mainly due to higher sales volumes and the weakening of the rand/US       
dollar exchange rate. Gas production levels in Mozambique were maintained,      
while oil and condensate production levels increased slightly compared to the   
prior year. During the year, SPI extended its global footprint and made         
entries into Papua New Guinea and Australia. With the commissioning of the      
Pande gas field in Mozambique as well as the execution of a second gas sales    
agreement, SPI achieved a 5 year average proved reserve replacement ratio of    
167%.                                                                           
Chemical cluster                                                                
Sasol Polymers - positive contribution from offshore operations                 
Operating profit decreased by 37% to R946 million compared to the previous      
year, mainly due to the sharp decline in polymer sales prices in the latter     
part of the year. The resulting margin squeeze was partially offset by          
additional production volumes at Arya Sasol Polymers plants, which made a       
positive contribution to our operating profit.                                  
Sasol Solvents - lower sales volumes and margins                                
Operating profit decreased by 79% to R495 million compared to the previous      
year due to reduced sales volumes following market-related cutbacks in          
production. Sales prices and, to a lesser extent, margins were lower in the     
second half, than in the first half of the year.                                
Sasol Olefins & Surfactants (Sasol O&S) - inventory revaluations leads to       
operating loss                                                                  
Sasol O&S reported an operating loss of R160 million compared to an operating   
profit of R1 512 million for the previous year, mainly as a result of the       
revaluation of inventory at lower international product prices. In addition,    
the business experienced reduced sales volumes and margins due to the economic  
downturn, especially in the global automotive and construction sectors. Sasol   
O&S`s turnaround and restructuring is well on track and has already positioned  
the business to better respond to the economic downturn.                        
Other chemical businesses - competition related penalties, reduced sales        
volumes and inventory revaluations result in operating losses                   
Other chemical businesses recorded an operating loss of R3 525 million          
compared to an operating profit of R1 200 million for the previous year due to  
the European Commission fine on Sasol Wax GmbH of R3 678 million (EUR318,2      
million) and the administrative penalty payable by Sasol Nitro to the South     
African Competition Commission of R251 million. Additionally, an amount of      
R242 million is provided for the closure of the Sasol Nitro Phalaborwa and      
Polyfos operations. Excluding these once-off items, operating profit decreased  
by 44% compared to the previous year resulting from reduced sales volumes and   
inventory revaluations.                                                         
Competition law compliance                                                      
As announced previously, we initiated a comprehensive group-wide competition    
law compliance review in July 2008, which is still ongoing. We will, in the     
course of conducting these reviews, adopt appropriate remedial and/or           
mitigating steps and make disclosures on material findings as and when          
appropriate. The competition law compliance review has revealed and may still   
reveal competition law contraventions or potential contraventions in respect    
of which we have taken or will take appropriate remedial and/or mitigating      
steps including lodging leniency applications. Additionally, we have reached a  
settlement agreement with the Competition Commission in respect of previously   
disclosed matters pertaining to Sasol Nitro.                                    
The South African Competition Commission is conducting investigations into the  
South African piped gas, petroleum, wax and polymer industries. We continue to  
interact and co-operate with the Competition Commission in respect of the       
subject matter of the leniency applications as well as in the areas that are    
subject to Competition Commission investigations. The company is continuing to  
evaluate and enhance its legal compliance controls mainly by way of the         
competition law compliance review. To the extent appropriate, further           
announcements will be made in future.                                           
Sustaining Sasol into the future                                                
Pursuing sustainable development opportunities remains a focus area for Sasol:  
The recordable case rate for employees and service providers, including         
injuries and illnesses, was 0,54 at 30 June 2009 compared to 0,50 at 30 June    
2008.                                                                           
We have updated our challenging targets to reduce our carbon dioxide (CO2)      
emissions. Existing operations will emit 15% less CO2 per unit of production    
by 2020 than they did in 2005. New coal-to-liquids (CTL) plants will emit 20%   
less CO2 by 2020 and 30% less by 2030 than the average 2005 CTL design          
baseline.                                                                       
We regularly review the group`s long-term (i.e. towards 2050) absolute green    
house gas (GHG) emission targets, as developments in the global climate change  
arena take place. Such targets are also contingent on technological advances,   
such as carbon capture and storage (CCS), increased utilisation of renewable    
energy as well as developments in the regulatory and fiscal environments in     
which we operate.                                                               
The first phase of the Sasol Mining black economic empowerment (BEE) strategy   
received a setback when a notice of intention to withdraw from the Igoda        
transaction was given by our partner, Exxaro Coal Mpumalanga. Sasol Mining is   
actively pursuing alternatives to ensure that its BEE strategy remains intact.  
Sasol Mining remains in compliance with the Mining Charter and will be          
compliant with the Charter by 2014.                                             
Growth projects achieving objectives                                            
Our flexible approach to our capital expenditure programme allows us to         
continuously reprioritise and ensure that our pipeline of growth projects is    
advanced.                                                                       
Our feasibility study into a CTL plant in China is progressing according to     
schedule.                                                                       
In April 2009, SSI signed a heads of agreement for the possible construction    
of a 1,3 million tonnes per annum GTL plant in Uzbekistan with our partners,    
Uzbekneftegaz and Petronas.                                                     
In India, the SSI and Tata joint venture for a CTL facility has progressed to   
the pre-feasibility stage following the award of a coal block in the eastern    
state of Orissa.                                                                
Gas production capacity in Mozambique has increased with SPI`s commissioning    
of the onshore Pande gas field, and we are well on track to increase the        
capacity of our upstream production facilities from 120 to 183 million giga     
joules per annum.                                                               
In Gabon, SPI`s Ebouri offshore oil field was successfully commissioned.        
Preparatory work for phase one of the Sasol Synfuels progressive expansion      
project in South Africa, the Secunda Growth Programme, is progressing. Phase    
one, based on natural gas, is expected to increase production by 3% by 2012     
and will improve energy efficiency through internal electricity generation      
capacity increasing by 33%.                                                     
In South Africa, Project Mafutha is scheduled to start bulk sample mining       
before the end of the 2009 calendar year in order to commence large scale       
gasification trials in one of Sasol Synfuels` gasifiers. The environmental      
impact study is scheduled to start in the third quarter of the 2009 calendar    
year.                                                                           
Sasol Wax to continue with basic engineering and environmental approvals for    
the project to double hard wax production at our Sasolburg facilities in South  
Africa.                                                                         
Cash conservation contributes to deleveraged balance sheet                      
The deleveraged balance sheet reflected an under-geared position of 1,2% at 30  
June 2009 compared to a gearing level of 20,5% at 30 June 2008. This resulted   
from our cash conservation drive, the suspension of the share repurchase        
programme and capital prioritisation. A low level of gearing is expected to be  
maintained in the short-term, but we expect that it will return to within our   
targeted range of 20% to 40% in the medium to long term as a result of our      
large capital intensive growth programme.                                       
During the current year, the company repurchased a total of 3 216 769 Sasol     
ordinary shares at an average price of R346,45 per share. Total shares          
repurchased since the inception of the programme in March 2007 represents       
about 6,4% of the issued share capital at 30 June 2009, excluding the shares    
issued in terms of the Sasol Inzalo share transaction. During the period, 31    
500 000 ordinary shares of the repurchased shares were cancelled for a total    
value of R7,9 billion. Sasol Investment Company (Pty) Limited holds 8 809 886   
Sasol ordinary shares. At the Annual General Meeting of 28 November 2008,       
shareholders renewed the authority to buy back up to 4% of the issued share     
capital for a further 15 months.                                                
Profit outlook* - reduction in earnings for the full 2010 financial year        
The decline in global chemical markets seen in the second half of the year is   
expected to stabilise, although increasing feedstock costs are expected to      
have a negative impact on our chemical businesses. While there has been some    
recovery in the markets of late, the crude oil price and rand/US dollar         
exchange rate remains volatile.                                                 
Taking into account the overall market conditions and our assumptions in        
respect of crude oil and product prices which are expected to remain at levels  
seen in the latter part of the 2009 financial year, as well as the current      
levels of lower chemical product demand, an expected significantly stronger     
rand/US dollar exchange rate and some improvement in overall production         
volumes, the earnings for the 2010 financial year are expected to reflect a     
reduction compared to the 2009 financial year. The current volatility and       
uncertainty of global markets makes it difficult to be more precise in this     
outlook statement.                                                              
The board considered it prudent to declare the final dividend in line with our  
dividend policy and targeted earnings cover range of 2,5 times to 3,5 times     
given the volatility and uncertainty in the current economic climate in the     
interests of the company`s growth strategy and the preservation of long-term    
shareholder value. Accordingly, the dividend for the full 2009 financial year   
reflects the lower earnings achieved for the year. In future, we expect to      
maintain our dividend policy within the targeted range of 2,5 times to 3,5      
times annual earnings cover.                                                    
*In accordance with standard practice, it is noted that this information has    
not been reviewed or reported on by the company`s auditors.                     
Acquisitions and disposals of businesses                                        
In July 2008, Exel Petroleum (Pty) Limited acquired the remaining 50,1% of      
Exelem Aviation (Pty) Limited for a purchase consideration of US$1,7 million.   
With effect from 20 August 2008, Sasol Properties (Pty) Limited acquired        
accommodation for staffing for the Sasol Synfuels growth initiative for a       
purchase consideration of R17,3 million.                                        
With effect from 23 December 2008, SSI reduced its interest in the Escravos     
GTL Project in Nigeria for a consideration of US$360 million, retaining a 10%   
interest.                                                                       
On 24 December 2008, Sasol Group Services (Pty) Limited acquired a 40%          
interest in Thin Film Solar Technologies (Pty) Limited in South Africa, for a   
purchase consideration of R40 million.                                          
Subsequent events                                                               
On 9 July 2009, Mr C Beggs was appointed as a non-executive director of Sasol   
Limited as well as a member of the Audit Committee.                             
On 15 July 2009, Sasol signed a joint venture agreement with Uzbekneftegaz,     
the natural oil and gas company of Uzbekistan, and Petronas of Malaysia, and    
launched a feasibility study for the development and implementation of a GTL    
project in Uzbekistan.                                                          
On 14 August 2009, in the Government Gazette No 32484, a change in ad valorem   
duties affecting various products in our South African chemical businesses,     
especially Sasol Polymers, was announced. If the full tariff reduction is       
applied to the turnover of the relevant businesses it has a negative effect of  
approximately R400 million on operating profit.                                 
On 18 August 2009, Sasol Nitro announced the possible closure of its            
Phalaborwa operations due to adverse market conditions.                         
Declaration of cash dividend number 60                                          
A final cash dividend of South African R6,00 per ordinary share (2008: R9,35    
per share) has been declared. The final cash dividend is payable on all         
ordinary shares, excluding the Sasol preferred ordinary shares.                 
The salient dates for holders of ordinary shares are:                           
Last day for trading to qualify for and    Friday, 9 October 2009               
participate in the dividend (cum                                                
dividend)                                                                       
Trading ex dividend commences              Monday, 12 October 2009              
Record date                                Friday, 16 October 2009              
Dividend payment date                      Monday, 19 October 2009              
Holders of American Depositary Receipts:                                        
Ex dividend on New York Stock Exchange    Wednesday, 14 October 2009            
(NYSE)                                                                          
Record date                               Friday, 16 October 2009               
Approximate date for currency conversion  Tuesday, 20 October 2009              
Approximate dividend payment date         Friday, 30 October 2009               
On Monday, 19 October 2009, dividends due to certificated shareholders on the   
South African registry will either be electronically transferred to             
shareholders` bank accounts or, in the absence of suitable mandates, dividend   
cheques will be posted to such shareholders. Shareholders who have              
dematerialised their share certificates will have their accounts credited on    
Monday, 19 October 2009.                                                        
Share certificates may not be dematerialised or re-materialised between         
Monday, 12 October 2009 and Friday, 16 October 2009, both days inclusive.       
On behalf of the board                                                          
Hixonia Nyasulu                                                                 
Chairman                                                                        
Pat Davies                                                                      
Chief Executive                                                                 
Christine Ramon                                                                 
Chief Financial Officer                                                         
Sasol Limited                                                                   
11 September 2009                                                               
Forward-looking statements: In this document we make certain statements that    
are not historical facts and relate to analyses and other information which     
are based on forecasts of future results and estimates of amounts not yet       
determinable. These statements may also relate to our future prospects,         
developments and business strategies. Examples of such forward-looking          
statements include, but are not limited to, statements regarding exchange rate  
fluctuations, volume growth, increases in market share, total shareholder       
return and cost reductions. Words such as "believe", "anticipate", "expect",    
"intend", "seek", "will", "plan", "could", "may", "endeavour" and "project"     
and similar expressions are intended to identify such forward-looking           
statements, but are not the exclusive means of identifying such statements. By  
their very nature, forward-looking statements involve inherent risks and        
uncertainties, both general and specific, and there are risks that the          
predictions, forecasts, projections and other forward-looking statements will   
not be achieved. If one or more of these risks materialise, or should           
underlying assumptions prove incorrect, our actual results may differ           
materially from those anticipated. You should understand that a number of       
important factors could cause actual results to differ materially from the      
plans, objectives, expectations, estimates and intentions expressed in such     
forward-looking statements. These factors are discussed more fully in our most  
recent annual report under the Securities Exchange Act of 1934 on Form 20-F     
filed on 7 October 2008 and in other filings with the United States Securities  
and Exchange Commission. The list of factors discussed therein is not           
exhaustive; when relying on forward-looking statements to make investment       
decisions, you should carefully consider both these factors and other           
uncertainties and events. Forward-looking statements apply only as of the date  
on which they are made, and we do not undertake any obligation to update or     
revise any of them, whether as a result of new information, future events or    
otherwise.                                                                      
Please note: A billion is defined as one thousand million.                      
Registered office: Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg      
2196, PO Box 5486, Johannesburg 2000, South Africa                              
Share registrars: Computershare Investor Services (Pty) Limited, 70 Marshall    
Street, Johannesburg 2001 PO Box 61051, Marshalltown 2107, South Africa, Tel:   
+27 11 370-7700 Fax: +27 11 370-5271/2                                          
Sponsor: Deutsche Securities (SA) (Pty) Limited                                 
Directors (non-executive): TH Nyasulu (Chairman), C Beggs*, BP Connellan*, HG   
Dijkgraaf (Dutch)*, MSV Gantsho*, A Jain (Indian), IN Mkhize*, MJN Njeke*, JE   
Schrempp (German)*, TA Wixley*                                                  
(executive): LPA Davies (Chief executive), KC Ramon (Chief financial officer),  
VN Fakude, AM Mokaba *Independent                                               
Company secretary: NL Joubert                                                   
American depositary receipts (ADR) program: Cusip number 803866300              
ADR to ordinary share 1:1                                                       
Depositary: The Bank of New York Mellon, 22nd floor, 101 Barclay Street, New    
York, NY 10286, USA                                                             
Sasol Limited is the world`s leader in the conversion of coal and gas to        
transportation fuels and chemicals.                                             
Segment report for the year ended 30 June                                       
Turnover                                        Operating profit                
Rm                   Business unit analysis     Rm                              
2008       2009      South African              2009     2008                   
104 790    103 358   energy cluster             28 684   28 048                 
7 479      8 297      Mining                    1 593    1 393                  
4 697      5 666      Gas                       2 424    1 785                  
39 616     37 701     Synfuels                  25 188   19 416                 
52 998     51 694     Oil                       (351)    5 507                  
-          -          Other                     (170)    (53)                   
3 764      5 166     International energy       880      383                    
                    cluster                                                     
1 793      3 027      Synfuels International    (235)    (621)                  
1 971      2 139      Petroleum International   1 115    1 004                  
73 696     81 913    Chemical cluster           (2 244)  6 605                  
11 304    15 525     Polymers                  946      1 511                   
17 182     18 115     Solvents                  495      2 382                  
28 780     29 534     Olefins & Surfactants     (160)    1 512                  
16 430     18 739     Other chemical            (3 525)  1 200                  
                    businesses                                                  
4 273      5 209      Other businesses*         (2 654)  (1 220)                
186 523    195 646                              24 666   33 816                 
(56 580)   (57 810)  Intercompany turnover                                      
129 943   137 836                                                               
*Includes share-based payment expenses related to the Sasol Inzalo share        
transaction.                                                                    
The preliminary financial statements are presented on a summarised              
consolidated basis.                                                             
STATEMENT OF FINANCIAL POSITION                                                 
2009          2008           
at 30 June                                          Rm            Rm            
Assets                                                                          
Property, plant and equipment                       70 370        66 273        
Assets under construction                           14 496        11 693        
Goodwill                                            805           874           
Other intangible assets                             1 068         964           
Investments in associates                           2 170         830           
Post-retirement benefit assets                      716           571           
Deferred tax assets                                 1 184         1 453         
Other long-term assets                              2 045         2 631         
Non-current assets                                  92 854        85 289        
Assets held for sale                                86            3 833         
Inventories                                         14 589        20 088        
Trade and other receivables                         17 117        25 323        
Short-term financial assets                         520           330           
Cash restricted for use                             1 247         814           
Cash                                                19 425        4 435         
Current assets                                      52 984        54 823        
Total assets                                        145 838       140 112       
Equity and liabilities                                                          
Shareholders` equity                                83 835        76 474        
Non-controlling interest                            2 382         2 521         
Total equity                                        86 217        78 995        
Long-term debt                                      13 615        15 682        
Long-term financial liabilities                     143           37            
Long-term provisions                                5 729         4 491         
Post-retirement benefit obligations                 4 454         4 578         
Long-term deferred income                           297           376           
Deferred tax liabilities                            9 168         8 446         
Non-current liabilities                             33 406        33 610        
Liabilities in disposal groups held for sale        65            142           
Short-term debt                                     4 762         3 496         
Short-term financial liabilities                    354           67            
Other current liabilities                           20 954        22 888        
Bank overdraft                                      80            914           
Current liabilities                                 26 215        27 507        
Total equity and liabilities                        145 838       140 112       
STATEMENT OF CASH FLOWS                                                         
                                               2009      2008                   
for the year ended 30 June                      Rm        Rm                    
Cash receipts from customers                    144 963   123 452               
Cash paid to suppliers and employees            (96 776)  (88 712)              
Cash generated by operating activities          48 187    34 740                
Finance income received                         2 264     957                   
Finance expenses paid                           (2 168)   (2 405)               
Tax paid                                        (10 252)  (9 572)               
Dividends paid                                  (7 193)   (5 766)               
Cash retained from operating activities         30 838    17 954                
Additions to non-current assets                 (15 672)  (10 855)              
Acquisition of businesses                       (30)      (431)                 
Cash obtained on acquisition of businesses      19        19                    
Disposal of businesses                          3 486     693                   
Cash disposed of on disposal of businesses      -         (31)                  
Other net cash flows from investing activities  (321)     (239)                 
Cash utilised in investing activities           (12 518)  (10 844)              
Share capital issued                            1 154     387                   
Share repurchase programme                      (1 114)   (7 300)               
Contributions from non-controlling              406       185                   
shareholders                                                                    
Dividends paid to non-controlling shareholders  (583)     (555)                 
Increase/(decrease) in long-term debt           755       (782)                 
Decrease in short-term debt                     (1 811)   (350)                 
Cash effect of financing activities             (1 193)   (8 415)               
Translation effects on cash and cash            (870)     324                   
equivalents of foreign operations                                               
Movement in cash and cash equivalents           16 257    (981)                 
Cash and cash equivalents at beginning of year  4 335     6 088                 
Net reclassification to held for sale           -         (772)                 
Cash and cash equivalents at end of year        20 592    4 335                 
INCOME STATEMENT                                                                
                                                      2009        2008          
for the year ended 30 June                             Rm          Rm           
Turnover                                               137 836     129 943      
Cost of sales and services rendered                    (88 508)    (74 634)     
Gross profit                                           49 328      55 309       
Other operating income                                 1 021       635          
Marketing and distribution expenditure                 (7 583)     (6 931)      
Administrative expenditure                             (9 050)     (6 697)      
Other operating expenditure                            (9 050)     (8 500)      
Competition related fines                              (3 947)     -            
Effect of crude oil hedges                             4 603       (2 201)      
Share-based payment expenses                           (3 325)     (1 782)      
Effect of remeasurement items                          (1 469)     (698)        
Translation (losses)/gains                             (166)       300          
Other expenditure                                      (4 746)     (4 119)      
Operating profit                                       24 666      33 816       
Finance income                                         1 790       735          
Share of profits of associates (net of tax)            270         254          
Finance expenses                                       (2 531)     (1 148)      
Profit before tax                                      24 195      33 657       
Taxation                                               (10 480)    (10 129)     
Profit for the year                                    13 715      23 528       
Attributable to                                                                 
Owners of Sasol Limited                                13 648      22 417       
Non-controlling interest in subsidiaries               67          1 111        
13 715      23 528        
Earnings per share                                     Rand        Rand         
Basic earnings per share                               22,90       37,30        
Diluted earnings per share1                            22,80       36,78        
1 Diluted earnings per share are calculated taking the Sasol Share Incentive    
Scheme and Sasol Inzalo share transaction into account.                         
STATEMENT OF COMPREHENSIVE INCOME                                               
                                                         2009        2008       
for the year ended 30 June                                Rm          Rm        
Profit for the year                                       13 715      23 528    
Other comprehensive income                                                      
Effect of translation of foreign operations               (2 485)     3 452     
Effect of cash flow hedges                                (497)       261       
Investments available-for-sale                            -           (1)       
Tax on other comprehensive income                         101         (60)      
Other comprehensive income for the year, net of tax       (2 881)     3 652     
Total comprehensive income for the year                   10 834      27 180    
Attributable to                                                                 
Owners of Sasol Limited                                   10 796      26 062    
Non-controlling interests in subsidiaries                 38          1 118     
10 834      27 180     
STATEMENT OF CHANGES IN EQUITY                                                  
                                                      2009        2008          
for the year ended 30 June                             Rm          Rm           
Opening balance                                        78 995      63 269       
Shares issued during year                              1 154       387          
Repurchase of shares                                   (1 114)     (7 300)      
Share-based payment expenses                           3 293       1 574        
Disposal of businesses                                 425         -            
Acquisition of businesses                              -           (100)        
Change in shareholding of subsidiaries                 406         306          
Total comprehensive income for the year                10 834      27 180       
Dividends paid                                         (7 193)     (5 766)      
Dividends paid to non-controlling shareholders in      (583)       (555)        
subsidiaries                                                                    
Closing balance                                        86 217      78 995       
Comprising                                                                      
Share capital                                          27 025      20 176       
Share repurchase programme                             (2 641)     (10 969)     
Sasol Inzalo share transaction                         (22 054)    (16 161)     
Retained earnings                                      74 882      77 660       
Share-based payment reserve                            5 833       2 540        
Foreign currency translation reserve                   939         3 006        
Investment fair value reserve                          2           1            
Cash flow hedge accounting reserve                     (151)       221          
Shareholders` equity                                   83 835      76 474       
Non-controlling interest in subsidiaries               2 382       2 521        
Total equity                                           86 217      78 995       
SALIENT FEATURES                                                                
for the year ended 30 June                     2009       2008                  
Selected ratios                                                                 
Return on equity                 %             17,0       32,5                  
Return on total assets           %             18,7       26,9                  
Operating margin                 %             17,9       26,0                  
Finance expense cover            times         12,3       14,5                  
Dividend cover                   times         2,8        2,8                   
Share statistics                                                                
Total shares in issue            million       665,9      676,7                 
Treasury shares (share           million       8,8        37,1                  
repurchase programme)                                                           
Weighted average number of       million       596,1      601,0                 
shares                                                                          
Diluted weighted average number  million       614,0      609,5                 
of shares                                                                       
Share price (closing)            Rand          269,98     461,00                
Market capitalisation            Rm            179 780    311 959               
Net asset value per share        Rand          141,14     128,44                
Dividend per share               Rand          8,50       13,00                 
- interim                        Rand          2,50       3,65                  
- final                          Rand          6,00       9,35                  
Other financial information                                                     
Total debt (including bank                                                      
overdraft)                                                                      
- interest bearing               Rm            17 814     19 455                
- non-interest bearing           Rm            643        637                   
Finance expense capitalised      Rm            34         1 586                 
Capital commitments              Rm            25 309     25 048                
- authorised and contracted      Rm            22 492     24 457                
- authorised, not yet contracted Rm            17 038     17 722                
- less expenditure to date       Rm            (14 221)   (17 131)              
Guarantees and contingent                                                       
liabilities                                                                     
- total amount                   Rm            29 545     37 381                
- liability included in the      Rm            12 795     10 730                
statement of financial position                                                 
Significant items in operating                                                  
profit                                                                          
- employee costs                 Rm            17 532     14 443                
- depreciation and amortisation  Rm            6 245      5 212                 
of non-current assets                                                           
- operating lease charges        Rm            1 111      887                   
- share-based payment expenses   Rm            3 325      1 782                 
Directors` remuneration          Rm            50         65                    
Share options granted to         `000          946        1 011                 
directors - cumulative                                                          
Share appreciation rights        `000          215        72                    
granted to directors -                                                          
cumulative                                                                      
Sasol Inzalo share rights        `000          75         75                    
granted to directors -                                                          
cumulative                                                                      
Effective tax rate1              %             43,3       30,1                  
Number of employees              number        33 544     33 928                
Average crude oil price - dated  US$/barrel    68,14      95,51                 
Brent                                                                           
Average rand/US$ exchange rate   1US$ = Rand   9,04       7,30                  
Closing rand/US$ exchange rate   1US$ = Rand   7,73       7,83                  
1 Increase in effective tax rate                                                
as a result of competition                                                      
related fines and share-based                                                   
payment expenses which are not                                                  
deductible for tax.                                                             
Reconciliation of headline                     Rm         Rm                    
earnings                                                                        
Profit for the year attributable               13 648     22 417                
to owners of Sasol Limited                                                      
Effect of remeasurement items                  1 469      698                   
Impairment of assets                           458        821                   
Reversal of impairment                         -          (381)                 
Loss/(profit) on disposal of                   761        (440)                 
assets                                                                          
Loss on repurchase of                          -          34                    
participation rights in GTL                                                     
venture                                                                         
Loss on realisation of foreign                 -          557                   
currency translation reserve                                                    
Scrapping of non-current assets                234        107                   
Write off of unsuccessful                      16         -                     
exploration wells                                                               
Tax effects and non-controlling                35         (225)                 
interests                                                                       
Headline earnings                              15 152     22 890                
Remeasurement items per above                                                   
Mining                                         3          7                     
Gas                                            4          104                   
Synfuels                                       137        25                    
Oil                                            (3)        (20)                  
Synfuels International                         777        396                   
Petroleum International                        18         (27)                  
Polymers                                       (1)        (12)                  
Solvents                                       158        104                   
Olefins & Surfactants                          106        (27)                  
Other chemical businesses                      246        229                   
Nitro                                         219        (199)                  
Wax                                           27         426                    
Other                                         -          2                      
Other businesses                               24         (81)                  
Remeasurement items                            1 469      698                   
Headline earnings per share      Rand          25,42      38,09                 
Diluted headline earnings per    Rand          25,25      37,56                 
share                                                                           
The reader is referred to the definitions contained in the 2008 Sasol Limited   
annual financial statements.                                                    
Basis of preparation and accounting policies                                    
The preliminary summarised consolidated financial results for the year ended    
30 June 2009 have been prepared in compliance with the Listings Requirements    
of the JSE Limited, International Financial Reporting Standards (IFRS) as       
issued by the International Accounting Standards Board (in particular           
International Accounting Standard 34 Interim Financial Reporting) and the       
South African Companies Act, 1973, as amended.                                  
The accounting policies applied in the presentation of the preliminary          
summarised consolidated financial results are consistent with those applied     
for the year ended 30 June 2008, except as follows:                             
Sasol Limited has early adopted the following standards, except if otherwise    
stated, which did not have a significant impact on the financial results:       
- IAS 27 (Amendment), Consolidated and Separate Financial Statements.           
- IFRS 1 and IAS 27 (Amendment), Cost of an Investment in a Subsidiary,         
Jointly Controlled Entity or Associate.                                         
- IFRS 3 (Revised), Business Combinations.                                      
- IAS 39 (Amendment), Eligible Hedged Items.                                    
- IAS 39 and IFRS 7 (Amendments), Reclassifications of Financial Assets -       
Effective Date and Transition (effective 1 July 2008).                          
- IFRS 5 (Amendment), Non-current Assets Held for Sale and Discontinued         
Operations.                                                                     
- IFRS 7 (Amendment), Financial Instruments: Disclosures - Improving            
disclosures about Financial Instruments.                                        
- IFRIC 16, Hedges of a Net Investment in a Foreign Operation.                  
- IFRIC 18, Transfers of Assets From Customers.                                 
-Various improvements to IFRSs.                                                 
These preliminary summarised consolidated financial results have been prepared  
in accordance with the historic cost convention except that certain items,      
including derivatives and available-for-sale financial assets, are stated at    
fair value.                                                                     
The preliminary summarised consolidated financial results are presented in      
rand, which is Sasol Limited`s functional and presentation currency.            
Related party transactions                                                      
The group, in the ordinary course of business, entered into various sale and    
purchase transactions on an arm`s length basis at market rates with related     
parties.                                                                        
Significant changes in contingent liabilities since 30 June 2008                
On 1 October 2008, the European Union found that members of the European wax    
industry, including Sasol Wax GmbH, had formed a cartel and violated antitrust  
laws. A fine of R3 678 million (EUR318,2 million) was imposed by the European   
Commission on Sasol Wax, who has appealed the quantum of the fine. The fine     
was paid in January 2009.                                                       
Flowing from the group-wide competition law compliance review, an               
administrative penalty of R251 million was imposed on Sasol Nitro in terms of   
the settlement agreement concluded between Sasol Nitro and the Competition      
Commission of South Africa in respect of certain aspects of the Nutri-Flo       
matter and the sale of the phosphoric acid production asset matters. The        
penalty has been provided for at 30 June 2009.                                  
Independent audit by the auditors                                               
The preliminary summarised consolidated statement of financial position at 30   
June 2009 and the related preliminary summarised consolidated income            
statement, statements of comprehensive income, changes in equity and cash       
flows for the year then ended was audited by KPMG Inc. The individual auditor   
assigned to perform the audit is Mr AW van der Lith. Their unqualified audit    
report is available for inspection at the registered office of the company.     
e-mail: investor.relations@sasol.com                                            
Comprehensive additional information is available on our website:               
www.sasol.com                                                                   
Johannesburg                                                                    
14 September 2009                                                               
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited               
Date: 14/09/2009 07:05:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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