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Sol - Sasol - Sasol Limited Interim Financial Results For The Six Months Ended

Release Date: 07/03/2011 07:05:02      Code(s): SOL SOLBE1
SOL - Sasol - Sasol Limited interim financial results for the six months ended  
31 December 2010                                                                
Sasol Limited                                                                   
(Incorporated in the Republic of South Africa)                                  
(Registration number 1979/003231/06)                                            
Sasol Ordinary Share codes:        JSE  : SOL     NYSE : SSL                    
Sasol Ordinary ISIN codes:         ZAE000006896   US8038663006                  
Sasol BEE Ordinary Share code:     JSE  : SOLBE1                                
Sasol BEE Ordinary ISIN code:      ZAE000151817                                 
("Sasol" or "the Company")                                                      
sasol limited interim financial results                                         
for the six months ended 31 December 2010                                       
focused strategy delivering solid results                                       
Driven by innovation, Sasol is an international integrated energy and chemicals 
company that creates value through its proven alternative fuel technology and   
talented people to provide sustainable energy solutions to the world            
- Headline earnings per share increased by 22% to R12,97                        
- Group cash fixed costs down in real terms                                     
- Interim dividend increased by 11% to R3,10 per share                          
- Cash generated by operations increased by 65% to R15,1 billion                
- First BEE listing and Ixia BEE transaction successfully                       
 concluded                                                                      
- Strengthened focus on safety                                                  
- Local and international investments drive growth                              
Significant growth investments                                                  
South Africa                                                                    
                                                     R billion                  
Wax expansion                                          8,4                      
Mine replacement                                       8,0                      
Secunda growth phase 1                                 7,8                      
Synfuels gasifiers and 17th reformer                   3,4                      
Ethylene purification unit                             1,9                      
Sasolburg electricity generation                       1,6                      
                                                                                
International                                                                   
R billion                  
Acquisition of Canadian gas reserves                   7,5                      
Tetramerisation                                        1,5                      
Mozambique CPF expansion                               1,4                      
Estimated total capital and business acquisition expenditure for 2011 - R23     
billion*                                                                        
Segment report                                                                  
for the period ended                                                            
Turnover                         Business unit  Operating profit                
R million                        analysis       R million                       
full      half        half                      half       half       full      
year     year        year                      year       year       year       
30 Jun    31 Dec 09   31 Dec 10                 31 Dec 10  31 Dec 09  30 Jun    
10        Reviewed    Reviewed                  Reviewed   Reviewed   10        
Audited                                                               Audited   
95 538     45 899      48 005    South African  7 447      8 097      17 808    
energy                                          
                                cluster                                         
7 863     3 623       4 263     - Mining         140        170        815      
5 371     2 582       2 697     - Gas           1 282      1 178      2 479     
33 893    16 370      15 664    - Synfuels      5 389      6 072      13 175    
48 411    23 324      25 381    - Oil            665        680       1 364     
-         -           -         - Other         (29)       (3)        (25)      
3 967     1 926       2 824     International  872          343        468      
energy                                          
                                cluster                                         
2 282     1 098       1 846     - Synfuels       539        112        131      
                                                                                
International                                   
1 685      828         978      - Petroleum      333        231        337      
                                                                                
                                International                                   
71 577    33 734      39 637    Chemical        3 453      1 463      5 496     
                                cluster                                         
14 321    6 408       8 234     - Polymers       574       (137)       958      
15 765    7 498       8 120     - Solvents       440        204       1 154     
25 283    11 507      14 636    - Olefins &     1 600       904       2 492     
                                  Surfactants                                   
16 208    8 321       8 647     - Other          839        492        892      
                                  chemical                                      
businesses                                    
5 420     2 851       3 801     - Other          246        565        165      
                                  businesses                                    
176 502   84 410      94 267                    12 018     10 468     23 937    
(54 246)  (26 338)    (27 035)   Intercompany                                   
                                turnover                                        
122 256   58 072      67 232                                                    
Overview                                                                        
Chief executive, Pat Davies says:                                               
"Sasol continued to deliver on its strategy by further improving the operational
and cost performance of our existing assets, while progressing growth           
opportunities that are based on our proprietary technology. The recent          
significant shale gas acquisition made in Canada accelerates our upstream gas   
and GTL growth focus. Furthermore, our deleveraged balance sheet allows us to   
consider a range of other growth opportunities."                                
Earnings attributable to shareholders for the six months ended 31 December 2010 
increased by 21% to R7,6 billion from R6,3 billion in the prior year+ while     
headline earnings per share and earnings per share increased by 22% to R12,97   
and by 20% to R12,68, respectively, over the same period.                       
Operating profit of R12,0 billion increased by 15% compared with the prior year.
Operating profit was positively impacted by higher average crude oil prices     
(average dated Brent was US$81,68/barrel in 2010 compared with US$71,42/barrel  
in 2009) and chemical product prices. However, a 7% stronger average rand/US    
dollar exchange rate (R7,11/US$ in 2010 compared with R7,64/US$ in 2009)        
partially offset the benefits of the higher average crude oil prices. Overall,  
group production volumes declined by 4% from the prior year primarily due to the
Sasol Synfuels` major planned outage, however, the majority of our other        
businesses reflected improved volumes. Cash fixed costs were down in real terms 
through our continued focus on cost containment.                                
The operating profit in the current period was negatively impacted by once-off  
charges compared with the prior year. These once-off charges include competition
related administrative penalties of R112 million, the Escravos gas-to-liquids   
(EGTL) partial impairment of R123 million and the Ixia Coal BEE transaction     
share-based payment expense of R565 million. The current period also includes a 
Sasol Inzalo BEE share-based payment expense of R432 million compared with R400 
million in the prior year.                                                      
The decrease in the effective tax rate from 36,0% to 33,7% resulted due to      
decreases in foreign tax rates, partly offset by competition related            
administrative penalties and share-based payment expenses compared with the     
prior year, both of which are not deductible for tax purposes.                  
Cash flow generated by operating activities was R15,1 billion compared with R9,2
billion in the prior year. This was mainly due to increased operating profits   
and reduced working capital, both as a result of price and volume effects.      
Progress was made on the group`s pipeline of growth projects, resulting in      
capital expenditure of R9,2 billion for the period.                             
+All comparisons refer to the prior year comparable period unless otherwise     
stated.                                                                         
Chief financial officer, Christine Ramon says:                                  
"Amidst a recovering global economy, our continued focus on operational         
efficiency, cost containment and business improvement plans has enabled us to   
sustain robust businesses with healthy margins. Our strong financial position is
underpinned by strong cash generation, which allows for the advancement of      
selected growth opportunities, while maintaining a buffer for volatility given  
that the rand strength remains the biggest risk to our earnings. In line with   
our progressive dividend policy, we have enhanced shareholder returns by        
increasing the interim dividend."                                               
Robust performance from existing operations                                     
South African energy cluster                                                    
Sasol Mining - higher US dollar coal prices                                     
Operating profit of R705 million, excluding the once-off Ixia Coal transaction  
share-based payment expense of R565 million, was 315% higher than the prior     
year. Although production and sales volumes decreased due to the planned Sasol  
Synfuels` outage and adverse geological conditions, higher US dollar export coal
prices as well as sales prices to Sasol Synfuels contributed to an improved     
operating profit. This improvement, however, was partially offset by a stronger 
rand/US dollar exchange rate and stock effects.                                 
Sasol Gas - improved sales volumes                                              
Operating profit increased by 9% to R1 282 million compared with the prior year 
mainly as a result of improved sales volumes, despite lower gas prices due to   
the stronger rand/US dollar exchange rate. The increased sales volumes were     
supported by the start-up of a new compressor in Mozambique.                    
Sasol Synfuels - major planned outage impacts production volumes                
Sasol Synfuels` operating profit decreased by 11% to R5 389 million compared    
with the prior year. Production volumes were 7,5% lower than the prior year due 
to the largest maintenance outage in Sasol Synfuels` history as well as         
subsequent instabilities experienced. Operating profits were further negatively 
impacted by higher feedstock and energy costs; however, these were partially    
offset by higher average oil prices resulting in favourable product prices. Open
cycle gas turbines were successfully commissioned during July 2010, making      
available an additional 200 megawatts of electricity generation capacity for the
Sasol Synfuels operations, thereby significantly reducing the impact of abnormal
electricity price increases on the Sasol Synfuels` unit cost.                   
Sasol Oil - increased sales volumes supported by higher wholesale margins       
Operating profit decreased by 2% to R665 million compared with the prior year.  
Higher sales volumes resulted from increased direct sales at service stations   
and from commercial customers, in part due to the 2010 Soccer World Cup.        
Wholesale margins were also higher. This effect was, however, negated by the    
stronger rand/US dollar exchange rate as well as by lower refining margins.     
During the period, five new retail convenience centres were opened.             
International energy cluster                                                    
Sasol Synfuels International (SSI) - increased production at Oryx GTL           
SSI`s operating profit increased by 381% to R539 million compared with the prior
year. This was mainly due to increased production at the Oryx gas-to-liquids    
(GTL) plant in Qatar and higher crude oil prices which were partly negated by a 
stronger rand/US dollar exchange rate. The Oryx GTL plant is producing well,    
achieving record daily production levels, at times above 100% of design         
capacity, during the first half of the 2011 financial year. The 10%             
debottlenecking project is being implemented as planned.                        
In addition, due to various factors impacting on our participation in the EGTL  
project, we have decided to partially impair our EGTL investment by R123 million
during the period.                                                              
Sasol Petroleum International (SPI) - higher oil and gas prices, improved       
Mozambican volumes                                                              
Operating profit increased by 44% to R333 million compared with the prior year, 
mainly due to higher oil and gas prices and positive foreign exchange           
translation effects from foreign operations. Sales volumes from our Temane      
operations increased; however, the favourable impact was partially offset by    
lower sales volumes from our Etame venture. Exploration expenditure was higher  
during the period. Work on the expansion of the onshore gas production          
facilities in Pande and Temane, Mozambique, to increase the current annual      
production capacity from 120 million gigajoules to 183 million gigajoules, is   
progressing according to schedule.                                              
Chemical cluster                                                                
Sasol Polymers - international polymer prices recovering                        
Sasol Polymers reflected an operating profit of R574 million compared with an   
operating loss of R137 million for the prior year. Operating profit was         
positively impacted by a 9% increase in production volumes from our local       
operations and a 26% increase from our offshore operations. The recovery in     
international polymer prices also contributed positively to the increase in     
operating profit, which was partially offset by the stronger rand/US dollar     
exchange rate. Arya Sasol Polymer Company contributed positively with an average
capacity utilisation of 71% for the period. Our offshore operations contributed 
R761 million to the operating profit. Included in operating profit is a once-off
administrative penalty of R112 million payable to the South African Competition 
Commission.                                                                     
Sasol Solvents - improved margins                                               
Operating profit increased by 116% to R440 million compared with the prior year.
This is mainly due to improved margins, resulting from higher prevailing product
prices coupled with cost savings. The increased operating profit was, however,  
partially offset by a stronger rand against the US dollar. Production volumes   
reflected a decline compared with the prior year as a result of scheduled       
outages at production facilities.                                               
Sasol Olefins & Surfactants (Sasol O&S) - robust demand and improved margins    
Operating profit increased by 77% to R1 600 million compared with the prior     
year, mainly as a result of robust demand in most of the Sasol O&S markets as   
well as improved margins. The increase in operating profit from our foreign     
operations was partially offset by foreign currency translation effects.        
Other chemical businesses - improved sales volumes in European and South African
wax and explosives markets                                                      
Operating profit increased by 71% to R839 million compared with the prior year. 
Sales volumes in the European and South African wax and explosives markets      
improved on the back of increased demand. Lower fertiliser sales volumes were   
experienced due to the impacts associated with the required exit from the retail
fertiliser business as well as inclement weather. The improvement in operating  
profits was diluted by the stronger rand/US dollar exchange rate. Cost control  
and restructuring have remained                                                 
a key focus area for our other chemical businesses, in particular for Sasol     
Nitro.                                                                          
Competition law compliance                                                      
We continue to focus on enhancing Sasol`s competition law compliance processes  
and systems throughout the group.                                               
There are matters that remain subject to investigation. The South African       
Competition Commission (the Commission) has initiated investigations in respect 
of some of the industries in which Sasol participates, including the South      
African piped gas, petroleum, fertiliser, wax and polymer industries.           
Subsequent to the Commission having referred complaints of excessive pricing of 
polypropylene and propylene in the domestic South African market and of price   
fixing in respect of polypropylene to the Competition Tribunal (the Tribunal),  
Sasol Polymers, a division of Sasol Chemical Industries Limited (SCI), on 14    
December 2010, concluded a settlement agreement with the Commission in relation 
to its existing propylene supply agreement (the Supply Agreement) with Safripol.
At the time of concluding the Supply Agreement in 1993, neither party understood
this pricing formula to give rise to competition law concerns. However, the     
Commission, in terms of the current Competition Act, found that the pricing     
formula, which required the exchange of pricing information amounts to indirect 
price fixing. This contravention is technical in nature and given the           
uncertainty surrounding the legal position in relation to the pricing formula   
and the technicality of the matter, it was considered prudent to settle the     
matter. Sasol Polymers has therefore agreed to pay a penalty of R112 million,   
which represents 3% of Sasol Polymers` turnover derived from its sale of        
polypropylene products for the 2009 financial year. The settlement agreement is 
in full and final settlement of the Commission`s allegations that the pricing   
formula gave rise to indirect price fixing. Sasol Polymers and Safripol have    
also reached agreement on key terms that are to govern the future monomer supply
relationship between the parties, which we consider to be fully compliant from a
competition law perspective. The settlement agreement was confirmed by the      
Tribunal on 24 February 2011.                                                   
Sasol Polymers does not agree with the Commission`s contention that the prices  
at which Sasol Polymers supplies propylene and polypropylene are excessive and  
consequently, the Commission`s allegations in respect of excessive pricing do   
not form any part of the settlement agreement concluded between the parties.    
On 30 October 2009, after being advised that certain provisions in a suite of   
agreements concluded between Sasol Gas, Coal, Energy and Power Resources Limited
(CEPR) and Spring Lights Gas (Pty) Limited (Spring Lights) constituted          
contraventions of the Competition Act (the Act), Sasol Gas applied for leniency 
in terms of the Commission`s corporate leniency policy and obtained conditional 
leniency. On 20 August 2010, Spring Lights concluded a settlement agreement with
the Commission in terms of which Spring Lights acknowledged the mentioned       
contraventions and agreed to pay an administrative penalty of R10,8 million. The
settlement agreement was referred to the Tribunal on 1 September 2010 for       
confirmation but the matter was postponed sine die to enable the Commission to  
make a ruling on an exemption application of Spring Lights.                     
We continue to interact and cooperate with the Commission in respect of the     
leniency applications as well as in the areas that are subject to Competition   
Commission investigations. As and when appropriate, we will make further        
announcements in respect of material matters.                                   
Sustaining Sasol into the future                                                
Developments in the sustainable development area include the following:         
- In July 2010, we concluded an agreement with Gassnova SF, a                   
 Norwegian state-owned enterprise responsible for managing                      
carbon capture and storage (CCS). This agreement allows us to                  
 participate in the European CO2 Technology Centre Mongstad,                    
 currently under construction in Norway.                                        
- In September 2010, we concluded the Ixia Coal transaction in                  
line with Sasol Mining`s empowerment strategy and its                          
 commitment to comply with the objectives of the Mineral and                    
 Petroleum Resources Development Act as well as the Mining                      
 Charter. This transaction results in Ixia Coal Funding (Pty)                   
Limited, a subsidiary of Ixia Coal (Pty) Limited, acquiring a                  
 20% shareholding in Sasol Mining for a purchase consideration                  
 of R1,8 billion.                                                               
- The recordable case rate for employees and service providers,                 
including injuries and illnesses, improved by 8% from 0,51 at                  
 30 June 2010 to 0,47 at 31 December 2010. However, we have had                 
 too many tragic incidents and a new and substantial safety                     
 improvement plan is currently being implemented.                               
- In February 2011, we listed the Sasol BEE Ordinary shares on                  
 the JSE Limited`s main board. This trading facility provides                   
 many Sasol Inzalo shareholders access to a regulated market in                 
 line with our commitment to broad-based shareholder                            
development.                                                                   
Acquisitions and projects progressing                                           
Acquisitions in support of our GTL proposition are advancing, supported by our  
strong cash flow generation and balance sheet which provide a solid platform for
growth:                                                                         
- In December 2010, Sasol signed an agreement with Talisman                     
 Energy Inc. (Talisman), a Canadian-based company, to acquire a                 
 50% stake in their Farrell Creek shale gas assets located in                   
the Montney Basin, of British Columbia, for an amount of R7,1                  
 billion. Talisman will retain the remaining 50% interest and                   
 continue as operator of the Farrell Creek assets which cover                   
 over 51 000 acres of land and which also include associated gas                
gathering systems and processing facilities.                                   
- In December 2009, the Project Application Report for the China                
 coal-to-liquids (CTL) plant was submitted to the Chinese                       
 Government for approval. Pending the outcome of this decision,                 
all further project activities have been delayed.                              
- The feasibility study for the Uzbekistan GTL plant is                         
 continuing and is expected to be completed by the end of the                   
 third quarter of the 2011 financial year.                                      
- The pre-feasibility study in respect of our Indian CTL project                
 is in its final stages.                                                        
- Sasol Solvents will begin construction of the world`s first                   
 commercial ethylene tetramerisation unit at the Sasol O&S, Lake                
Charles production site in the United States. The planned                      
 capacity for this facility is 100 000 tons per annum of                        
 combined 1-octene and 1-hexene which are co-monomers used in                   
 the plastics industry. Construction is expected to begin in the                
2011 calendar year, with beneficial operation expected by the                  
 middle of the 2013 calendar year.                                              
- Construction on the wax production facility in Sasolburg, South               
 Africa, is progressing according to plan.                                      
Balance sheet remains strong                                                    
Gearing at 31 December 2010 of 2,5% (30 June 2010: 1,0%) remained low as a      
result of improved cash flow generation. This low level of gearing is expected  
to be maintained in the short-term, but is likely to return to within our       
targeted range of 20% to 40% in the medium term as our large capital intensive  
growth programme and gas acquisition strategy gains momentum. At the annual     
general meeting of 26 November 2010, shareholders renewed their authority to the
Sasol directors to buy back up to 10% of Sasol`s issued share capital (excluding
the preferred ordinary and Sasol BEE ordinary shares) for a further 12 months.  
No shares were repurchased during the current period.                           
Profit outlook* - improved operational performance, uncertain macro economic    
conditions                                                                      
Signs of recovery have been seen in some developed economies, albeit at a       
sluggish pace, and downside risks remain. Financial stability experienced a     
setback as market volatility increased and investor confidence decreased,       
especially in the European markets with the selling off of sovereign debt.      
However product prices and the demand for chemical products have shown          
significant improvement. Crude oil prices have been increasing steadily         
supported by geopolitics in the Middle East/North Africa and growing risks to   
supply, offsetting the negative impact of the rand/US dollar exchange rate. The 
further strengthening of the rand/US dollar exchange rate remains the single    
biggest external factor exerting pressure on our profitability.                 
We remain on track to deliver on our expectations for an improved operational   
performance and to contain cost increases to within inflationary levels for the 
full year. We anticipate that Sasol Synfuels` production volumes will be        
marginally lower than that of the previous year, taking into account the major  
planned maintenance outage which was undertaken in September 2010. We expect to 
maintain Oryx GTL and Arya Sasol Polymer Company`s operating rates for the full 
year. However, in light of the continuing uncertain macro economic conditions   
and our assumptions in respect of improved crude oil and product prices, weaker 
refining margins as well as the stronger rand/US dollar exchange rate, our focus
remains on factors within our control: volume growth, margin improvement and    
cost containment. The current volatility and uncertainty of global markets makes
it difficult to be more precise in this outlook statement.                      
The board has decided to increase the interim dividend taking into account the  
ongoing strength of our financial position and current capital investment plans,
as well as the increased earnings and the improved market and economic          
conditions. This approach is in line with our progressive dividend policy and   
our commitment to return value to shareholders.                                 
* 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 September 2010, we concluded the Ixia Coal transaction. This transaction     
results in Ixia Coal Funding (Pty) Limited, a subsidiary of Ixia Coal (Pty)     
Limited, acquiring a 20% shareholding in Sasol Mining for a purchase            
consideration of R1,8 billion. The transaction resulted in a non-controlling    
interest for the Sasol group of an effective 10,2% being recognised.            
Subsequent events                                                               
In January 2011, the Commission withdrew its investigation into the South       
African coal mining industry.                                                   
On 1 March 2011, the suspensive conditions pertaining to the agreement with     
Talisman in respect of the acquisition of a 50% stake in their Farrell Creek    
shale gas assets, were fulfilled and the transaction was completed.             
Changes of directors and company secretary                                      
On 26 November 2010, Mr A Jain retired as a non-executive director of Sasol     
Limited. On 1 January 2011, Messrs BP Connellan and TA Wixley retired as non-   
executive directors of Sasol Limited. The company secretary, Dr NL Joubert, has 
been appointed the country president, Sasol Canada, and Mr VD Kahla has been    
appointed as company secretary with effect from 14 March 2011.                  
Declaration of cash dividend number 63                                          
An interim cash dividend of South African R3,10 per ordinary share (2009: R2,80 
per share) has been declared for the six months ended 31 December 2010. The     
interim cash dividend is payable on all ordinary shares (including the Sasol BEE
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, 1 April 2011               
participate in the interim dividend                                             
(cum dividend)                                                                  
Trading ex dividend commences                Monday, 4 April 2011               
Record date                                  Friday, 8 April 2011               
Dividend payment date                        Monday, 11 April 2011              
Holders of American Depositary Receipts 1                                       
Ex dividend on New York Stock Exchange        Wednesday, 6 April 2011           
(NYSE)                                                                          
Record date                                   Friday, 8 April 2011              
Approximate date for currency conversion      Tuesday, 12 April 2011            
Approximate dividend payment date             Thursday, 21 April 2011           
1 All dates are approximate as the NYSE sets the record date after receipt of   
the dividend declaration.                                                       
On Monday, 11 April 2011, 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 hold              
dematerialised shares will have their accounts held by their CSDP or broker     
credited on Monday, 11 April 2011.                                              
Share certificates may not be dematerialised or re-materialised between Monday, 
4 April 2011 and Friday, 8 April 2011, both days inclusive.                     
On behalf of the board                                                          
Ms Hixonia Nyasulu    Chairman                                                  
Mr Pat Davies         Chief executive                                           
Ms Christine Ramon    Chief financial officer                                   
Sasol Limited                                                                   
7 March 2011                                                                    
The interim financial statements are presented on a condensed consolidated      
basis.                                                                          
Statement of financial position                                                 
at                                                                              
                                 31 Dec    31 Dec    30 Jun                     
                                 10        09        10                         
                                 Reviewed  Reviewed  Audited                    
Rm        Rm        Rm                         
Assets                                                                          
Property, plant and equipment      74 173    68 807    72 523                   
Assets under construction          23 038    18 832    21 018                   
Goodwill                            701       790       738                     
Other intangible assets            1 101     1 026     1 193                    
Investments in associates          2 978     3 015     3 573                    
Post-retirement benefit assets      768       782       789                     
Deferred tax assets                1 003      959      1 099                    
Other long-term assets             2 042     2 148     1 828                    
Non-current assets                 105 804   96 359    102 761                  
Assets held for sale                121       19        16                      
Inventories                        16 337    15 898    16 472                   
Trade and other receivables        20 487    18 962    20 474                   
Short-term financial assets         40        456       50                      
Cash restricted for use            2 489      972      1 841                    
Cash                               13 330    15 822    14 870                   
Current assets                     52 804    52 129    53 723                   
Total assets                       158 608   148 488   156 484                  
Equity and liabilities                                                          
Shareholders` equity               95 876    86 317    94 730                   
Non-controlling interest           2 550     2 374     2 512                    
Total equity                       98 426    88 691    97 242                   
Long-term debt                     14 319    14 119    14 111                   
Long-term financial liabilities     59        66        75                      
Long-term provisions               7 588     5 977     7 013                    
Post-retirement benefit            4 529     4 565     4 495                    
obligations                                                                     
Long-term deferred income           360       277       273                     
Deferred tax liabilities           11 189    9 578     10 406                   
Non-current liabilities            38 044    34 582    36 373                   
Liabilities in disposal groups      4         5         4                       
held for sale                                                                   
Short-term debt                    1 239     4 671     1 542                    
Short-term financial                289       303       357                     
liabilities                                                                     
Other current liabilities          20 393    20 020    20 847                   
Bank overdraft                      213       216       119                     
Current liabilities                22 138    25 215    22 869                   
Total equity and liabilities       158 608   148 488   156 484                  
Statement of cash flows                                                         
for the period ended                                                            
                                 half year 31  half year 31    full year 30     
                                 Dec 10        Dec 09          Jun 10 Audited   
Reviewed Rm   Reviewed Rm     Rm               
Cash receipts from customers       66 651        55 868          118 129        
Cash paid to suppliers and         (51 558)      (46 679)        (90 791)       
employees                                                                       
Cash generated by operating        15 093        9 189           27 338         
activities                                                                      
Finance income received             719           616            1 372          
Finance expenses paid              (778)         (811)           (1 781)        
Tax paid                           (2 238)       (2 783)         (6 040)        
Dividends paid                     (4 713)       (3 654)         (5 360)        
Cash retained from operating      8 083          2 557           15 529         
activities                                                                      
Additions to non-current assets    (9 217)       (6 573)         (16 108)       
Disposal of businesses             -              13             -              
Additional investments in          -             -               (1 248)        
associate                                                                       
Other net cash flows from           76           (528)            652           
investing activities                                                            
Cash utilised in investing         (9 141)       (7 088)         (16 704)       
activities                                                                      
Share capital issued                248           110             204           
Contributions from non-           27              5               9             
controlling shareholders                                                        
Dividends paid to non-             (313)         (222)           (318)          
controlling shareholders                                                        
Increase/(decrease) in long-term    672           631            (2 567)        
debt                                                                            
Decrease in short-term debt        (215)         (3)             (29)           
Cash effect of financing          419             521            (2 701)        
activities                                                                      
Translation effects on cash and    (347)         (4)             (124)          
cash equivalents of foreign                                                     
operations                                                                      
Decrease in cash and cash          (986)         (4 014)         (4 000)        
equivalents                                                                     
Cash and cash equivalents at       16 592        20 592          20 592         
beginning of period                                                             
Cash and cash equivalents at end   15 606        16 578          16 592         
of period                                                                       
Income statement                                                                
for the period ended                                                            
                                 half year 31  half year 31    full year 30     
                                 Dec 10        Dec 09          Jun 10 Audited   
                                 Reviewed Rm   Reviewed Rm     Rm               
Turnover                           67 232        58 072          122 256        
Cost of sales and services         (42 901)      (37 529)        (79 183)       
rendered                                                                        
Gross profit                       24 331        20 543          43 073         
Other operating income              292           264             854           
Marketing and distribution         (3 350)       (3 195)         (6 496)        
expenditure                                                                     
Administrative expenditure         (5 612)       (4 311)         (9 451)        
Other operating expenditure        (3 643)       (2 833)         (4 043)        
                                                                                
Competition related fines          (112)         -               -              
Effect of crude oil hedges         (25)          (73)            (87)           
Share-based payment expenses       (1 196)       (524)           (943)          
Effect of remeasurement items      (177)         (105)            46            
Translation losses                 (919)         (781)           (1 007)        
Other expenditure                  (1 214)       (1 350)         (2 052)        

Operating profit                   12 018        10 468          23 937         
Finance income                      565           626            1 332          
Share of profits of associates      137           57              217           
(net of tax)                                                                    
Finance expenses                   (983)         (996)           (2 114)        
Profit before tax                  11 737        10 155          23 372         
Taxation                           (3 953)       (3 654)         (6 985)        
Profit for the period              7 784         6 501           16 387         
Attributable to                                                                 
Owners of Sasol Limited            7 601         6 297           15 941         
Non-controlling interest in         183           204             446           
subsidiaries                                                                    
                                  7 784         6 501           16 387          
Earnings per share                Rand          Rand            Rand            
Basic earnings per share           12,68         10,54           26,68          
Diluted earnings per share1        12,69         10,57           26,54          
1 Diluted earnings per share are calculated taking the Sasol Share Incentive    
Scheme and Sasol Inzalo share transaction into account.                         
Statement of comprehensive income                                               
for the period ended                                                            
                                 half      half      full                       
                                 year 31   year 31   year 30                    
                                 Dec 10    Dec 09    Jun 10                     
Reviewed  Reviewed  Audited                    
                                 Rm        Rm        Rm                         
Profit for the period              7 784     6 501     16 387                   
Other comprehensive income                                                      
Effect of translation of           (2 813)   (755)     (802)                    
foreign operations                                                              
Effect of cash flow hedges         (41)       50        13                      
Investments available-for-sale     -          4         4                       
Tax on other comprehensive          19        3         8                       
income                                                                          
Other comprehensive income for     (2 835)   (698)     (777)                    
the period, net of tax                                                          
Total comprehensive income for     4 949     5 803     15 610                   
the period                                                                      
Attributable to                                                                 
Owners of Sasol Limited            4 768     5 594     15 171                   
Non-controlling interests in        181       209       439                     
subsidiaries                                                                    
                                  4 949     5 803     15 610                    
                                                                                
Statement of changes in equity                                                  
for the period ended                                                            
                                 half year    half year 31 full year 30         
                                 31 Dec 10    Dec 09       Jun 10               
Reviewed     Reviewed Rm  Audited              
                                 Rm                        Rm                   
Opening balance                    97 242       86 217       86 217             
Shares issued during period         248          110          204               
Share-based payment expenses       1 017         432          880               
Disposal of businesses             (4)          -           -                   
Change in shareholding of         -             5            9                  
subsidiaries                                                                    
Total comprehensive income for     4 949        5 803        15 610             
the period                                                                      
Dividends paid                     (4 713)      (3 654)      (5 360)            
Dividends paid to non-             (313)        (222)        (318)              
controlling shareholders in                                                     
subsidiaries                                                                    
Closing balance                    98 426       88 691       97 242             
Comprising                                                                      
Share capital                      27 477       27 135       27 229             
Share repurchase programme         (2 641)      (2 641)      (2 641)            
Sasol Inzalo share transaction     (22 054)     (22 054)     (22 054)           
Retained earnings                  88 298       77 525       85 463             
Share-based payment reserve        7 613        6 265        6 713              
Foreign currency translation       (2 676)       184          137               
reserve                                                                         
Investment fair value reserve       5            6            5                 
Cash flow hedge accounting         (146)        (103)        (122)              
reserve                                                                         
Shareholders` equity               95 876       86 317       94 730             
Non-controlling interest in        2 550        2 374        2 512              
subsidiaries                                                                    
Total equity                       98 426       88 691       97 242             
Salient features                                                                
for the period ended                                                            
half year    half year   full year 30       
                                    31 Dec 10    31 Dec 09   Jun 10             
Selected ratios                                                                 
Return on equity             %        16,7*        14,8*       17,9             
Return on total assets       %        16,6*        15,2*       16,9             
Operating margin             %        17,9         18,0        19,6             
Finance expense cover        times    16,3         13,7        14,3             
Dividend cover               times    4,2          3,9         2,5              
*Annualised                                                                     
Share statistics                                                                
Total shares in issue        millio   669,7        666,8       667,7            
                            n                                                   
Treasury shares (share       millio   8,8          8,8         8,8              
repurchase programme)        n                                                  
Weighted average number of   millio   599,6        597,2       597,6            
shares                       n                                                  
Diluted weighted average     millio   614,4        614,8       615,5            
number of shares             n                                                  
Share price (closing)        Rand     346,28       298,00      274,60           
Market capitalisation        Rm       231 904      198 706     183 350          
Net asset value per share    Rand     160,38       145,09      159,00           
Dividend per share           Rand     3,10         2,80        10,50            
Other financial information                                                     
Total debt (including bank                                                      
overdraft)                                                                      
- interest bearing           Rm       15 142       18 373      15 047           
- non-interest bearing       Rm       629          633         725              
Finance expense capitalised  Rm       28           20          58               
Capital commitments          Rm       43 662       34 202      46 497           
- authorised and contracted  Rm       31 840       27 272      31 553           
- authorised, not yet        Rm       34 440       25 341      35 769           
contracted                                                                      
- less expenditure to date   Rm       (22 618)     (18 411)    (20 825)         
Guarantees and contingent                                                       
liabilities                                                                     
- total amount               Rm       20 284       27 856      22 003           
- liability included in the  Rm       10 207       14 200      10 288           
statement of financial                                                          
position                                                                        
Significant items in                                                            
operating profit                                                                
- employee costs             Rm       8 676        8 151       17 546           
- depreciation and           Rm       3 537        3 153       6 712            
amortisation of non-current                                                     
assets                                                                          
- share-based payment        Rm       1 196        524         943              
expenses                                                                        
Sasol share incentive        Rm       199          124         119              
schemes                                                                         
Sasol Inzalo share           Rm       432          400         824              
transaction                                                                     
Ixia Coal transaction        Rm       565         -           -                 
Effective tax rate1           %       33,7         36,0        29,9             
Number of permanent          number   32 874       33 318      33 339           
employees                                                                       
Average number of            number   33 845       34 118      33 394           
employees2                                                                      
Average crude oil price -    US$/     81,68        71,42       74,37            
dated Brent                  barrel                                             
Average rand/US$ exchange    1US$ =   7,11         7,64        7,59             
rate                         Rand                                               
Closing rand/US$ exchange    1US$ =   6,62         7,41        7,67             
rate                         Rand                                               
                                                                                
1 Decrease in effective tax rate as                                             
a result of the decrease in foreign                                             
tax rates in the current period.                                                
2 Average employees` numbers                                                    
include executive directors,                                                    
employees of subsidiary companies                                               
and our share of proportionately                                                
consolidated entities and                                                       
operations. Part time employees and                                             
hired labour are included on a full                                             
time equivalent basis. People                                                   
employed by contractors are not                                                 
included.                                                                       
                                                                                
Reconciliation of headline           Rm           Rm          Rm                
earnings                                                                        
Profit for the period                                                           
attributable to                                                                 
owners of Sasol Limited               7 601        6 297       15 941           
Effect of remeasurement               177          105         (46)             
items                                                                           
                                                                                
Impairment of assets                  161          47          110              
Reversal of impairment                (31)         -           (365)            
(Profit)/loss on disposal             (3)          5          5                 
of business                                                                     
Profit on disposal of                 (6)          (7)         (7)              
associate                                                                       
(Profit)/loss on disposal             (10)         1           (3)              
of assets                                                                       
Scrapping of non-current              66           59          156              
assets                                                                          
Write off of unsuccessful             -           -           58                
exploration wells                                                               
                                                                                
Tax effects and non-                 (3)          (29)        (19)              
controlling interests                                                           
Headline earnings                     7 775        6 373       15 876           
Remeasurement items per above                                                   
Mining                                (1)          4           1                
Gas                                   7            -           -                
Synfuels                              34           15          58               
Oil                                   (7)          2           10               
Synfuels International                133          -           4                
Petroleum International               1           -            108              
Polymers                              10           16          14               
Solvents                              32           37          58               
Olefins & Surfactants                 (23)         19          (344)            
Other chemical businesses             (14)         8           21               
                                                                                
Nitro                                 (8)          13          26               
Wax                                   (6)          (5)         (5)              
Infrachem                             -            -           (1)              
Merisol                               -            -           1                
                                                                                
Other businesses                      5            4           24               
Remeasurement items                   177          105         (46)             
Headline earnings per share  Rand     12,97        10,67       26,57            
Diluted headline earnings    Rand     12,98        10,69       26,44            
per share                                                                       
The reader is referred to the definitions contained in the 2010 Sasol Limited   
annual financial statements.                                                    
Basis of preparation and accounting policies                                    
The condensed consolidated interim financial results for the six months ended 31
December 2010 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), the AC500 Standards as     
issued by the Accounting Practices Board or its successor and the South African 
Companies Act, 1973, as amended.                                                
The accounting policies applied in the presentation of the interim financial    
results are consistent with those applied for the year ended 30 June 2010 and   
are in terms of IFRS, except as follows:                                        
Sasol Limited has early adopted the following standards, which did not have a   
significant impact on the financial results:                                    
- IFRS 2 (Amendment), Group Cash-settled Share-based Payment                    
Transactions.                                                                  
- IFRS 7, Financial Instruments: Disclosures - Transfer of                      
 financial assets.                                                              
- Various Improvements to IFRSs.                                                
Sasol has adopted Various Improvements to IFRSs - IAS 27, Consolidated and      
Separate Financial Statements, effective 1 July 2010, which did not have a      
significant impact on the financial results.                                    
These condensed consolidated interim 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 condensed consolidated interim 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 2010                
On 12 August 2010, the Commission announced that it had referred its complaints 
of excessive pricing of polypropylene and propylene in the domestic South       
African market against SCI and of price fixing in respect of polypropylene      
against SCI and Safripol to the Tribunal for adjudication. On 14 December 2010, 
Sasol Polymers, a division of SCI, concluded a settlement agreement with the    
Commission in relation to its existing propylene supply agreement with Safripol 
and agreed to pay a penalty of R112 million. A liability has been recognised in 
this respect at 31 December 2010. (Refer to competition law compliance matters  
above).                                                                         
Independent review by the auditors                                              
The condensed consolidated statement of financial position at 31 December 2010  
and the related condensed consolidated income statement, statements of          
comprehensive income, changes in equity and cash flows for the six months then  
ended were reviewed by KPMG Inc. The individual auditor assigned to perform the 
review is                                                                       
Mr CH Basson. Their unmodified review report is available for inspection at the 
registered office of the company.                                               
Forward-looking statements: Sasol may, in this document, 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 28 September 2010 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 under take 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. All references to    
years refer to the financial year ended 30 June. Any reference to a calendar    
year is prefaced by the word "calendar".                                        
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): Ms TH Nyasulu (Chairman), Mr C Beggs*, Mr HG         
Dijkgraaf (Dutch)*,                                                             
Dr MSV Gantsho*, Mr GA Lewin (Australian)*, Ms IN Mkhize*, Mr MJN Njeke*, Prof  
JE Schrempp (German)                                                            
(executive): Mr LPA Davies (Chief executive), Ms KC Ramon (Chief financial      
officer), Ms VN Fakude                                                          
*Independent Lead independent director                                          
Company secretary: Dr NL Joubert                                                
Company registration number: 1979/003231/06, incorporated in the Republic of    
South Africa                                                                    
JSE           NYSE                               
Sasol Ordinary shares:                                                          
Share code:                     SOL           SSL                               
ISIN code:                      ZAE000006896  US8038663006                      
Sasol BEE Ordinary shares:                                                      
Share code:                     SOLBE1                                          
ISIN code:                      ZAE000151817                                    
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                                                             
e-mail: investor.relations@sasol.com                                            
Comprehensive additional information is available on our website: www.sasol.com 
Date: 07/03/2011 07:05:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
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