Sasol Limited - Change To Dividend Policy And Segmental ReportingRelease Date: 18/02/2015 11:19:00 Code(s): SOL SOLBE1
(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" or ?the Group?)
CHANGE TO DIVIDEND POLICY AND SEGMENTAL REPORTING
In response to the current low oil price environment, an initiative to
conserve cash over the next 30 months was announced by Sasol on 28 January
2015 (?Response Plan?).
Sasol?s Response Plan comprises 5 key components, namely:
? capital portfolio phasing and reductions;
? capital structuring;
? working capital improvements;
? margin enhancement; and
? further cash cost reductions, supplementing the Group?s target of at
least R4 billion annual costs savings driven through the company-wide
business performance enhancement programme, which was launched in 2013.
Looking specifically at the capital structuring lever, the management team
and the Sasol board of directors (?Board?) evaluated the Company?s
progressive dividend policy, which had been introduced to maintain or
improve dividends in line with the Company?s anticipated sustainable growth
The Company?s dividend policy takes into consideration various factors,
including overall market and economic conditions, the Group?s financial
position, capital investment plans as well as earnings growth.
In the context of a low oil price environment, the Group?s earnings will be
negatively impacted. The current macroeconomic conditions have therefore
necessitated a reassessment of the Company?s progressive dividend policy.
At a special meeting of the Sasol Board, the directors approved a change in
the Company?s dividend policy. The revised policy is based on a dividend
cover range, which will be similar to the dividend cover rates applied
during the 2008 to 2014 financial years.
The Board considers that, in the current environment, this revised dividend
policy, together with the other components of the Response Plan, will
provide sufficient flexibility for the Company to manage its balance sheet.
This will also allow the Group to execute its growth programme while
continuing to return value to shareholders through dividend payouts.
Another important component of the Company?s Response Plan efforts is the
ongoing refinement of its operating model, and the further optimisation of
its management structures to ensure greater focus and efficiency while
enabling additional cost reductions.
To this end, earlier this month, Sasol announced changes to its top
management structures. The Company has also decided to combine two of its
reportable segments, Southern Africa Energy and International Energy, and
their associated management structures, into one segment, now called
Given this decision, Sasol?s segmental reporting will now consist of six
reportable segments: Mining, Exploration and Production International,
Energy, Base Chemicals, Performance Chemicals, and Group Functional
Sasol will be announcing its results for the first half of the 2015
financial year on 9 March 2015. The interim dividend will be announced at
the same time, and the segment information contained in these results will
be disclosed on this revised basis.
18 February 2015
Sponsor: Deutsche Securities (SA) Proprietary Limited
Disclaimer - 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 29 September 2014 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: 18/02/2015 11:19:00 Supplied by www.sharenet.co.za
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