Sol - Sasol - Sasol Hedges About 30% (oil Equivalent) Of Its South African Release Date: 08/03/2011 17:39:00 Code(s): SOL SOLBE1
SOL - Sasol - Sasol hedges about 30% (oil equivalent) of its South African
synthetic fuels and West African crude oil production
(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 hedges about 30% (oil equivalent) of its South African synthetic
fuels and West African crude oil production
Sasol announces that it has entered into hedging transactions (zero cost
collars) for 4,56 million barrels of oil (equivalent to circa 30% of its
planned South African synfuels and West African crude oil production for
the final quarter of the 2011 financial year). The zero cost collars expire
on 15 June 2011.
The hedge will provide downside protection should monthly average dated
Brent crude oil prices decrease below US$85 per barrel (put level) on the
hedged portion of production. Conversely, Sasol will incur opportunity
losses on the hedged portion of production should monthly average oil
prices exceed a volume weighted average US$172.77 per barrel (call level).
Call levels between US$170 per barrel and US$175 per barrel were entered
Sasol assesses the appropriateness of oil price hedging continuously and
periodically enters into hedging transactions to improve the stability and
predictability of cash flows as part of its risk management activities.
8 March 2011
Deutsche Securities (SA) (Pty) Limited
Forward-looking statement - Disclaimer:
Sasol may, in this announcement, 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
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rate fluctuations, volume growth, increases in market share, total
shareholder return, resource volumes and values 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. Some of 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 undertake any obligation to update or revise any of
them, whether as a result of new information, future events or otherwise.
Date: 08/03/2011 17:39:00 Supplied by www.sharenet.co.za
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