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Sasol Limited - Reviewed Interim Financial Results For The Six Months Ended 31 December 2016

Release Date: 27/02/2017 07:05:00      Code(s): SOL SOLBE1     
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")

Reviewed interim financial results for the six months ended 31 December 2016

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise 
of our 30 300 people working in 33 countries. We develop and commercialise technologies, and build and operate 
world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and 
low-carbon electricity.

SALIENT FEATURES
-  Strong business performance across most of the value chain
-  Production volumes
   -   Up 1% for Secunda Synfuels Operations
   -   Up 5% for Eurasian Operations
-  Normalised sales volumes
   -   Base Chemicals up 11% and Performance Chemicals up 2%
   -   Energy liquid fuels down 2%
-  Business Performance Enhancement Programme delivered
   -   Sustainable actual cost savings of R4,9bn
   -   Target exit run rate of R5,4bn by 2018
-  Response Plan cash savings exceeding expectations
   -   R17,8bn cash savings delivered for the period
   -   Target increased to deliver full year cash savings of R26bn
-  Lake Charles Chemicals Project is on track and 64% complete
-  Headline earnings per share down 38% to R15,12, earnings per share up 19% to R14,21
-  Safety Recordable Case Rate (RCR), excluding illnesses, improved to 0,27. We regret that three fatalities 
   occurred.
-  Cash fixed costs, including the mining strike cost, 1% down in real terms
-  Invested R471 million in skills development and socioeconomic development
-  Direct and indirect taxes paid to South African Government R15,4 billion

Segment report
for the period ended

               Turnover                                                                Operating profit/(loss)
              R million                                                                        R million
 Full year    Half year    Half year                                             Half year        Half year        Full year
30 Jun 16     31 Dec 15    31 Dec 16                                             31 Dec 16        31 Dec 15        30 Jun 16
  Audited      Reviewed     Reviewed       Segment analysis                       Reviewed         Reviewed          Audited
   21 186        10 625       11 543       Operating Business Units                  1 738          (5 930)          (6 975)
   16 975         8 351        9 524       -  Mining                                 1 534            2 359            4 739
                                           -  Exploration and Production
    4 211         2 274        2 019          International                            204          (8 289)         (11 714)
  173 042        84 507       83 452       Strategic Business Units                 11 909           18 600           29 831
   64 341        32 991       31 225       -  Energy                                 5 529           10 261           14 069
   35 067        16 938       18 215       -  Base Chemicals                         1 733            3 178            4 486
   73 634        34 578       34 012       -  Performance Chemicals                  4 647            5 161           11 276
      108            49          526       Group Functions                              25            2 246            1 383
  194 336        95 181       95 521       Group performance                        13 672           14 916           24 239
 (21 394)      (10 706)     (10 626)       Intersegmental turnover                                                    
  172 942        84 475       84 895       External turnover                                                    

Transitioning to the future 
Joint President and Chief Executive Officer, Bongani Nqwababa said: 
"Notwithstanding the volatile macro-economic environment in which we operate, Sasol delivered a resilient
performance. This is attributable to our continued sharpened focus on business and capital excellence,
advancement of our value-based capital projects, consistent delivery against our cost reduction and
cash savings targets and a heightened focus on macro-economic risk mitigations to protect our balance
sheet. These decisive actions were underpinned by a robust business performance from our global assets.
Furthermore, we continue pursuing our zero harm focus, building a resilient organisation for the future
and nurturing our foundation business, while driving value based growth as we consider our future
investment opportunities."

Joint President and Chief Executive Officer, Stephen Cornell said:
"Advancing our value based growth strategy continues through our near-term focus on Southern Africa and
North America. Our Lake Charles Chemicals Project in the United States is now 64% complete, and remains
on track for start-up of the first units in the second half of 2018. The fundamental drivers for this investment
remain sound, and will enable Sasol's continued growth in a low feedstock cost region. In Mozambique,
we remain committed to our growth plans and will continue to partner with the country's government
and other stakeholders on projects that will help stimulate socio-economic growth.  We are confident that
the economics to develop the Production Sharing Agreement license area remain positive, with four wells
completed, as part of our drilling campaign, already showing promising results."

Overview*  
Earnings attributable to shareholders for the six months ended 31 December 2016 increased by 19% to
R8,7 billion from R7,3 billion in the prior period. Headline earnings per share (HEPS) decreased by 38% to
R15,12 and earnings per share (EPS) increased by 19% to R14,21 compared to the prior period. Operating
profit decreased by 8% to R13,7 billion compared to the prior period.
 
Although business performance was mostly in line with our expectations, Sasol's profitability, period on
period, and as reflected in HEPS, was negatively impacted by the following items:
-  The strengthening of the Rand against the US dollar to R13,74 at 31 December 2016 (30 June 2016: R14,71) resulted 
   in translation losses of approximately R1,3 billion on the valuation of the balance sheet, compared to translation 
   gains of R2,6 billion in the prior period (including foreign exchange contracts). The valuation impact of the 
   stronger closing exchange rate for the period under review negatively impacted earnings by approximately 
   R1,46 per share. 
-  The impact of the once-off prolonged strike action at our Secunda mining operations resulted in an
   additional net cost of R1 billion or R1,06 per share.
-  The reversal of a provision of R2,3 billion (US$166 million) or R3,77 per share in the prior period based on a
   favourable ruling received from the Tax Appeal Tribunal in Nigeria relating to the Escravos Gas-to-Liquids
   (EGTL) project.

HEPS, normalised for these once-off adjustments and translation effects, amounted to R18,62 per share,
which is 4% higher compared to normalised HEPS for the prior period of R17,96. 

* All comparisons refer to the prior period for the six months ended 31 December 2015. All references to years 
  refer to the financial year ended 30 June. Any reference to a calendar year is prefaced by the word "calendar". 
  Except for earnings attributable to shareholders and the RP cash conservation measures, all numbers are quoted 
  on a pre-tax basis.

We have seen a steady and continued recovery in global oil and product prices during the period under
review. Average Brent crude oil prices moved higher by 2% and since December 2016 have moved to the mid
US$50/bbl range, which will positively impact our results during the second half of 2017. Our refining margins
decreased by 32% to US$8,42/bbl, however, we have seen some recovery since the lows of October 2016
which will positively impact on our results in the second half of 2017. Despite the soft commodity chemical
prices experienced during the first quarter of 2017, we have seen a steady increase in demand and resilient
margins in certain key markets during the second quarter of 2017. Despite the volatile macro-economic
environment, the average margin for our speciality chemicals business remained flat, except for
our ammonia business, where margins were squeezed as a result of oversupply in global markets. 

Overall, Sasol delivered a strong business performance across most of the value chain. Secunda Synfuels'
production volumes increased by 1% and our Eurasian operations increased production volumes by 5% on
the back of stronger demand. Natref's production volumes were down 7% mainly due to plant shutdowns
during the period under review. Normalised sales volumes increased by 11% for our Base Chemicals business
and 2% for our Performance Chemicals business compared to the prior period mainly on the back of stronger
demand and improved plant stability. Liquid fuels sales volumes decreased by 2% due to the Natref planned
shutdowns and more volumes from Secunda Synfuels Operations (SSO) being allocated to the higher margin
yielding chemical businesses. ORYX GTL achieved an average utilisation rate of 95% with the run-rate of
production in line with our previous market guidance. 

Our Secunda mining operations experienced a challenging six months with the onset of a protected strike
action, which commenced in August 2016, by the Association of Mineworkers and Construction Union
(AMCU). Notwithstanding a 16% decrease in mining production volumes resulting from the strike action,
Mining continued to deliver our full coal supply commitment to the integrated Sasol value chain through
external coal purchases and increased gas consumption at Secunda Synfuels Operations. The profitability of
the mining business was significantly impacted by the R1 billion net additional cost as a result of the strike.

We continued to drive our cost containment programme and managed cash fixed costs well below inflation
in nominal terms, when compared to the prior period. Excluding the impact of inflation, our cash fixed costs,
including the mining strike costs, reduced by 1% in real terms compared to the prior period. The strong cost
performance was achieved by sustainable delivery of our Business Performance Enhancement Programme
(BPEP) and Response Plan (RP).

As part of the BPEP, we delivered sustainable cost savings of R4,9 billion, exceeding our December 2016 exit
run rate target by R0,2 billion. We are confident that we will meet or exceed our targeted sustainable savings
at an exit run rate of R5,4 billion by the end of 2018.

Our comprehensive low oil price RP, focusing on cash conservation to counter a lower-for-much-longer
oil price reality, has continued to yield positive cash savings in line with our 2017 targets, despite margin
contraction and difficulties experienced in placing certain product. The RP realised R17,8 billion of cash savings
for the period. We have increased our full year cash savings target from R22 billion to R26 billion, mainly due
to the reprioritisation of our capital portfolio. The RP places the company in a strong position to operate
profitably within a US$40-50/bbl oil price environment. We expect our sustainable cash cost savings from our
RP to be R2,5 billion by 2019, in addition to the R5,4bn sustainable savings from our BPEP.

The decrease in the effective corporate tax rate from 43,1% to 28,4% was mainly as a result of the R7,4 billion
(CAD665 million) partial impairment of our Canadian shale gas assets in the prior period. The normalised
effective tax rate, excluding equity accounted investments, remeasurements and once-off items, is 29,2%
compared to 32,9% in the prior period due to additional tax incentives.

Actual capital expenditure, including accruals, amounted to R30,2 billion. This includes R17,4 billion
(US$1,2 billion) relating to the Lake Charles Chemicals Project (LCCP). We have revised our capital expenditure 
estimate from R75 billion to R66 billion for the full year, largely due to the impact of the stronger rand/US dollar 
exchange rate coupled with our cash conservation initiatives and active management of our capital portfolio.

Our net cash position decreased from R52 billion in June 2016 to R28 billion at 31 December 2016, mainly due
to the funding of the LCCP and the effect of a stronger closing rand/US dollar exchange rate. Loans raised
during the period amounted to R2 billion, mainly for the funding of our growth projects.

During the current financial year, Sasol entered into a number of hedges to mitigate specific financial risks 
and provide protection against unforeseen movements in oil prices, interest rates, currency movements, 
and commodity and final product prices. Approximately 50% of the crude oil exposure was hedged with crude oil 
put options for 2017 at a net price of ~US$49,50/bbl. A total net loss of R515 million (US$37 million) was 
recognised during the period. To manage the exposure to the US dollar, approximately 12% of the rand/US dollar 
exposure was hedged with zero-cost collar instruments at a floor of ~R14,10 for specific periods in 2018. 
A net gain of R283 million (US$20 million) was recognised during the period. Should attractive hedges become 
available in the market at an acceptable cost, we will enter into additional hedges as mitigation against these 
financial risks. 

Cash generated by operating activities decreased by 37% to R16,8 billion compared with R26,7 billion in
the prior period. Notwithstanding reduced cash flows, our balance sheet has the capacity to lever up, as
we continue to execute our growth plans and return value to our shareholders. Accordingly, in support of
our funding strategy, gearing increased to 25%, which is consistent with our previous market guidance of
20% to 44%.

To manage the impact of price volatility and the low oil price environment, the Sasol Limited Board (Board)
concluded that our internal gearing ceiling will remain at 44% until the end of 2018. The net debt: EBITDA ratio
is forecasted to be below 2,0 times. We actively manage our capital structure and funding plan to ensure that
we maintain an optimum solvency and liquidity profile.

Our dividend policy is to pay dividends within a dividend cover range based on HEPS. Taking into account the
current volatile macro-economic environment, capital investment plans, our cash conservation initiative,
the current strength of our balance sheet, and the dividend cover range, the Board has declared a gross
interim dividend of R4,80 per share (15,8% lower compared to the prior period). The interim dividend cover was
3,2 times at 31 December 2016 (31 December 2015: 4,3 times). The dividend declared is in accordance with our
dividend cover policy of 2,2x to 2,8x of annual HEPS.

Solid operational performance supported by continued effective cost management 

Operating Business Units 
Mining - uninterrupted supply to Secunda Synfuels Operations, but negatively impacted by
strike action

Operating profit decreased by 35% to R1 534 million compared to the prior period, mainly as a result of the net
additional cost of the strike action of R1 billion at our Secunda mining operations. Normalised operating profit,
excluding the strike cost, increased by 9% mainly due to higher selling prices to SSO and a 35% increase in
export coal prices. Our normalised unit cost of production increased by 13% above inflation compared to the
prior period due to higher depreciation, enablement and utility costs associated with our new mines and
increased maintenance costs.

Exploration and Production International (E&PI) - strong Mozambique operational delivery 
E&PI recorded an operating profit of R204 million compared to an operating loss of R853 million (excluding
the impact of a partial impairment of R7 436 million) in the prior period. Operating profit was positively
impacted by translation gains of R202 million and an 18% decrease in cash fixed costs, underpinned by our
cost containment programme.

Our Mozambican producing operations' operating profit increased from R437 million in the prior period to
R988 million mainly due to a 3% increase in production volumes on the back of increased gas consumption at
SSO and the net positive impact of translation effects of R859 million.

Our Gabon asset recorded a lower operating loss of R41 million compared to a  R512 million operating loss in
the prior period, mainly due to lower depreciation charges and higher sales prices. This was offset by a 23%
decrease in production volumes (after royalties) as a result of the deferral of drilling activities in line with our
RP cash saving initiatives.

Our Canadian shale gas assets in Montney generated an operating loss of R312 million, compared to an
operating loss of R333 million (excluding the impact of a partial impairment of R7 436 million) in the prior
period. Our Canadian gas production volumes increased by 3% compared to the prior period, mainly due to
completion activities on existing wells. There were no drilling rigs in operation during the period.

Strategic Business Units
Performance Chemicals - stronger demand and resilient margins
Operating profit of R4 647 million decreased by 10% compared to the prior period, mainly due to a partial
impairment of R527 million on our US Phenolics business and a significant decrease in global ammonia prices.
Normalising for these effects, operating profit increased by 9%. The increase in operating profit is largely due
to the resilience of margins in our European organics business coupled with increased ethylene sales prices
which positively impacted on the margins of our assets in the US. Production volumes from our European
Operations increased by 5% due to stronger demand.

Total sales volumes increased by 1% compared to the prior period. Normalised sales volumes were up 2%,
after taking into account the ethylene plant shutdown in the US in the prior period and the sale of the US wax
production facility in May 2016. 

Our Fischer-Tropsch Wax Expansion Project (FTWEP) (phase one), which is continuing to ramp up, is replacing
hard wax volumes from the existing facility which has been recently decommissioned. Phase two of the
project is expected to reach beneficial operation by the end of quarter three of 2017 resulting in increased
hard wax production during quarter four of 2017 and 2018. Cash fixed costs in nominal rand terms are 1%
lower compared to the prior period.

Base Chemicals - increased sales volumes due to improved production stability 
Sales volumes increased by 11% mainly as a result of improved production stability after the commissioning of
the C3 Expansion Project in the prior year.

Operating profit, normalised for the effect of remeasurements, once-off items and translation effects on the
valuation of the balance sheet, remained flat in comparison to the prior year. The business managed to deliver
a solid performance by focusing on delivering higher production and sales volumes and managing costs. While
commodity chemical US dollar prices decreased by 6% compared to the prior period, prices have recovered and are 
currently 6,7% higher than the second half of 2016, with this trend expected to continue for at least the 
next six months.

Operating profit decreased by 45% to R1 733 million compared to the prior period and the operating margin
decreased from 19% to 10%. Normalised operating profit for the full financial year is estimated at between
R4,5 billion to R5,5 billion, based on the latest business performance and taking into account a much stronger
rand/US dollar exchange rate*.

* This financial forecast is the responsibility of the directors and in accordance with standard practice, it is 
  noted that this information has not been reviewed and reported on by the company's auditors.

Energy - Strong Synfuels performance, margins under pressure
Operating profit of R5 529 million decreased by R4 732 million or 46% compared to the prior period.
Normalised for the impact of translation effects on the valuation of the balance sheet and other once-off
items, operating profit decreased by 21%. Operating margins were down 4% on a normalised basis. Operating
profit was negatively impacted by a 38% decrease in petrol differentials, a 12% decrease in diesel differentials
and lower liquid fuels sales volumes. In nominal terms, we reduced our cash fixed costs by 2% compared to
the prior period due to our BPEP and RP initiatives and the benefit of increased own electricity generation
at SSO.

Liquid fuel sales volumes decreased by 2% compared to the prior period, mainly due to lower allocated
volumes from SSO, the impact of the Natref plant shutdowns and lower external purchases. Gas sales
volumes were 1% higher compared to the prior period mainly due to higher gas sales to commercial
customers. Our share of power produced at the Central Termica de Ressano Garcia (CTRG) joint operation in
Mozambique amounted to 334 gigawatt-hours of electricity, 2% higher than the prior period.

The ORYX GTL plant achieved an average utilisation rate of 95% for the period, while maintaining a world-class
safety recordable case rate of zero. Excluding the impact of a once-off tax adjustment at the ORYX GTL plant
in the prior period, our share of profit from joint ventures was 10% higher compared to the prior period.
In Nigeria, the extended EGTL turnaround maintenance programme is scheduled to be completed during the
first quarter of the 2017 calendar year followed by a planned ramp-up in plant production to design capacity.

Advancing projects to enable future growth  
We are encouraged by the headway we are making in delivering on our project pipeline:

-  Growing our footprint in North America 

   -  Overall construction on the LCCP continues on all fronts, with most engineering and procurement
      activities nearing completion during the period. Total capital spent amounts to US$6,0 billion, and the
      overall project completion is 64%. The total forecasted capital cost for the project remains within the
      approved US$11 billion budget and approved schedule. The project's contingency which, measured
      against industry norms for this stage of project completion, is still considered sufficient to effectively
      complete the project to beneficial operation (BO) within the US$11 billion budget. Although unplanned
      event-driven risks may still impact the execution and cost of the project, we are confident that the
      remaining construction, procurement, execution and business readiness risks can be managed within
      the budget as a result of these changes. We still consider the LCCP to be a value-based investment
      that will return sustainable value to our shareholders for many years into the future. The project
      returns are still forecast to be above our weighted average cost of capital (WACC).

   -  Construction of our 50% joint venture high-density polyethylene plant with Ineos Olefins and
      Polymers USA is more than 90% complete and is on track for mechanical completion by the
      middle of the 2017 calendar year. The plant will be the largest bi-modal high density polyethylene
      (HDPE) manufacturing facility in the US (470 kt per annum) and will produce some of the most cost
      competitive performance resins based on InnoveneTM S technology. We continue to work with the
      operator (our joint venture partner) to manage construction delays that have mainly resulted from
      adverse weather conditions and poor craft labour productivity. Together with our partner, we have
      successfully approached the market and attained a favourable reduction in the financing rate for the
      remaining term of the facility.  The project economics remain strong and returns are currently above
      WACC despite the project's cost increase. The market conditions for start-up continue to be favourable
      with low feedstock cost and strong polyethylene market demand projected in 2017.

-  Focusing on our asset base in Southern Africa 

   -  Our strategic R14,0 billion mine replacement programme, which will ensure uninterrupted coal
      supply to SSO in order to support Sasol's strategy to operate its southern African facilities until
      2050, is nearing completion. The total programme is expected to be completed below budget and
      within schedule. The Shondoni colliery achieved BO, within budget, during April 2016 and will be
      fully completed during the second half of the 2017 calendar year. Phase 2 of the Impumelelo colliery
      project for R0,9 billion commenced during the first half of the 2016 calendar year and is on track to be
      completed within budget, late in the 2019 calendar year.

   -  The expansion of our FTWEP facility in Sasolburg is progressing well. BO for phase two is on track for
      the end of the third quarter of 2017. The project economics for this project remain sound. The total
      project cost for both phases is estimated at R13,5 billion.

   -  The Loop Line 2 project on the Mozambique to Secunda Pipeline (MSP) reached BO ahead of schedule
      on 2 November 2016 at a total project cost below budget, while delivering a safety recordable case
      rate of zero. Loop Line 2 will increase the MSP's available annual gas transportation capacity from
      169,4 bscf to 191 bscf and renders a return in line with our investment hurdle rate. 

   -  The first phase of the development of the Production Sharing Agreement (PSA) licence area remains
      on budget and schedule. To date, four wells have been drilled and completed, two gas wells in the
      Temane G8 reservoir and two oil wells in the Inhassoro G6 reservoir. Drilling results have been in line
      with expectations. The third oil well (or fifth well) was spudded in early February 2017. In addition,
      as part of the PSA programme, the first onshore Mozambique 3D seismic programme has been
      successfully undertaken.

Maintaining our focus on sustainable value creation

We continued to deliver on our broader sustainability and community contributions during the period:

-  Safety remains a top priority for Sasol. Regrettably, we did experience the loss of three of our colleagues
   during the period. Our thoughts remain with these colleagues' families and friends. Our safety RCR for
   employees and service providers, excluding illnesses, improved to 0,27 at 31 December 2016 (0,32 as at
   31 December 2015). We retain our focus on safety and strive for zero harm.

-  During the period, we invested R471 million in skills development and socioeconomic development, which
   includes our Ikusasa programme, bursaries, learnerships and artisan training programmes. The Ikusasa
   programme focuses on education, health and wellbeing, infrastructure, and safety and security in the
   Secunda and Sasolburg regions. Since 2013, we have invested R618 million, of which R21 million was spent
   in Secunda and Sasolburg during the period. A further R68 million is planned for the remainder of 2017.
   The total planned Ikusasa investment amounts to R800 million, with the remaining R114 million to be
   spent by 2020.

-  While we support the transition to a lower carbon economy, we are concerned that the proposed carbon
   tax in South Africa will diminish the country's competitiveness. It also cannot address the structural issues
   that lie at the heart of the country's carbon intensity. The proposed design of the carbon tax creates
   substantial regulatory and investment uncertainty as there is insufficient clarity relating to the phases
   of the tax proposed in the draft carbon tax bill, especially post 2020. This is exacerbated by the fact
   that the carbon tax is not aligned with the carbon budget system which is currently in the trial phase of
   implementation. Sasol continues to engage with the South African Government on the carbon tax issue.

-  To ensure our ongoing compliance with new air quality regulations in South Africa, Sasol applied for
   certain postponements to manage our short-term challenges relating to the compliance timeframes.
   We have received decisions on our postponement applications from the National Air Quality Officer, which,
   while aligned with our requests, imposed stretched targets in terms of our atmospheric emission licences.
   In some cases shorter postponement were granted and further applications are under way to extend
   compliance timeframes in line with our committed roadmaps. Our R3,3 billion volatile organic compound
   abatement programme remains on track to achieve our targeted reductions of volatile organic compounds
   emissions by 2020.

-  We continue to measure our comprehensive climate change response in accordance with our key
   performance indicators. Our total greenhouse gas (GHG) emissions globally for the six months ended
   31 December 2016 were 33,8 million tons compared to 34,5 million tons for the prior period. Our GHG
   emissions intensity (measured in carbon dioxide equivalent per ton of production) increased to 3,71
   compared to 3,68 at June 2016 as a result of lower production (due to planned shutdowns). GHG targets in
   South Africa are being developed in conjunction with the South African government's process for setting
   carbon budgets.

-  Our improvement in utility Energy Intensity Index (EII) marginally increased above our internal target
   of 1% improvement for the period to 2% for our operations in South Africa. Including our international
   operations, we improved our EII by 1,8% from the previous financial year.

-  During the period, we paid R15,4 billion in direct and indirect taxes to the South African Government.
   Sasol remains one of the largest corporate taxpayers in South Africa, contributing significantly to the
   country's economy.

-  In 2016, in terms of the Department of Trade and Industry's revised Codes of Good Practice, our B-BBEE
   contributor status declined to level 8 from level 4. We view B-BBEE in South Africa as a business
   imperative and have embarked on a project to realise the targets set to improve our rating by 2020.

Profit outlook* - strong production performance and cost reductions to continue 

The current economic climate remains volatile and uncertain. While oil price and foreign exchange movements
are outside our control and may impact on our results, our focus remains firmly on managing factors within
our control, including volume growth, cost optimisation, effective capital allocation, focused financial risk
management and cash conservation.

We expect an overall strong operational performance for 2017, with:
-  Liquid fuels sales volumes for the Energy business in southern Africa to be approximately 61 million
   barrels;
-  Base Chemicals sales volumes to be between 4% to 6% higher than the prior year, with US dollar product
   prices recovering;
-  Performance Chemicals sales volumes to be between 1% to 2% higher, with average margins for the
   business remaining resilient; 
-  An average utilisation rate at ORYX GTL in Qatar of above 90% for the remainder of the financial year; 
-  Normalised cash fixed costs to remain in line with SA PPI;
-  The RP cash flow contribution to range between R22 billion and R26 billion;
-  BPEP cash cost savings to achieve an annual run rate of R5,4 billion by 2018;
-  Capital expenditure, including capital accruals, of R66 billion for 2017 and R60 billion in 2018 as we
   progress with the execution of our growth plan and strategy. Capital estimates may change as a result of
   exchange rate volatility;
-  Our balance sheet gearing up to a level of between 30% and 35%, with net debt:EBITDA being managed to
   below 2,0 times; 
-  Average Brent crude oil prices expected to remain between US$50/bbl and US$55/bbl; and
-  Ongoing rand/US dollar volatility due to various factors, including the pending outcome of the next review
   of the South African sovereign credit rating and capital inflows.

* The financial information contained in this profit outlook and other financial forecasts mentioned elsewhere 
  in the financial overview are the responsibility of the directors and in accordance with standard practice, 
  it is noted that this information has not been reviewed and reported on by the company's auditors.     

Competition law compliance 
The South African Competition Commission is conducting proceedings against various petroleum products
producers, including Sasol. The Competition Commission is conducting an investigation into Sasol's South
African polymer business, and it is finalising a market inquiry in the South African LPG market. We continue
to interact and co-operate with the South African Commission in respect of the subject matter of current
applications brought by Sasol, as well as in the areas that are subject to the Commission's investigations. 
To the extent appropriate, further announcements will be made in future.

Change in directors
Ms VN Fakude resigned as Executive Director and Executive Vice-President, Strategy and Sustainability with
effect from 31 December 2016.

Declaration of cash dividend number 75
An interim gross cash dividend of South African 480,00 cents per ordinary share (31 December 2015 - 570,00 cents 
per ordinary share) has been declared for the six months ended 31 December 2016. The interim cash dividend is
payable on the ordinary shares and the Sasol BEE ordinary shares. The Board is satisfied that the liquidity and
solvency of the company, as well as capital remaining after payment of the dividend is sufficient to support
the current operations. The dividend has been declared out of retained earnings (income reserves). With effect 
from 22 February 2017, the South African dividend withholding tax rate is 20%. At the declaration date, there 
are 651 389 516 ordinary (including 8 809 886 treasury shares), 25 547 081 preferred ordinary and 
2 838 565 Sasol BEE ordinary shares in issue. The net dividend amount payable to ordinary shareholders who 
are not exempt from the dividend withholding tax, is 384,00 cents per share, while the dividend amount payable 
to ordinary shareholders who are exempt from dividend withholding tax is 480,00 cents per share. 

The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:

Declaration date                                                                             Monday, 27 February 2017
Last day for trading to qualify for and participate in the final dividend
(cum dividend)                                                                                 Tuesday, 14 March 2017
Trading ex-dividend commences                                                                Wednesday, 15 March 2017
Record date                                                                                     Friday, 17 March 2017
Dividend payment date (electronic and certificated register)                                    Monday, 20 March 2017

The salient dates for holders of our American Depository Receipts are(1):

Ex-dividend on New York Stock Exchange (NYSE)                                                Wednesday, 15 March 2017
Record date                                                                                     Friday, 17 March 2017
Approximate date for currency conversion                                                     Wednesday, 22 March 2017
Approximate dividend payment date                                                               Friday, 31 March 2017

1. All dates are approximate as the NYSE sets the record date after receipt of the dividend declaration.

On Monday, 20 March 2017, 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, 20 March 2017. Share certificates may not be
dematerialised or rematerialised between 15 March 2017 and 17 March 2017, both days inclusive.

On behalf of the Board

Mandla Gantsho     Bongani Nqwababa            Stephen Cornell             Paul Victor
Chairman           Joint President and Chief   Joint President and Chief   Chief Financial Officer
                   Executive Officer           Executive Officer
Sasol Limited
24 February 2017

The interim financial statements are presented on a condensed consolidated basis.

Income statement
for the period ended

    Full year      Half year      Half year                                            Half year       Half year       Full year
    30 Jun 16      31 Dec 15      31 Dec 16                                            31 Dec 16       31 Dec 15       30 Jun 16
      Audited       Reviewed       Reviewed                                             Reviewed        Reviewed         Audited
        US$m*          US$m*          US$m*                                                   Rm              Rm              Rm
       11 911          6 202          6 068 Turnover                                      84 895          84 475         172 942
                                            Materials, energy and
      (4 912)        (2 596)        (2 526) consumables used                            (35 342)        (35 361)        (71 320)
        (476)          (273)          (238) Selling and distribution costs               (3 331)         (3 718)         (6 914)
        (582)          (285)          (294) Maintenance expenditure                      (4 119)         (3 878)         (8 453)
      (1 647)          (868)          (851) Employee-related expenditure                (11 911)        (11 816)        (23 911)
                                            Exploration expenditure and
         (20)           (10)           (13) feasibility costs                              (182)           (142)           (282)
      (1 127)          (588)          (584) Depreciation and amortisation                (8 174)         (8 006)        (16 367)
        (625)             23          (552) Other expenses and income                    (7 719)             307         (9 073)
           10             61           (25)  Translation gains/(losses)                    (341)             829             150
        (635)           (38)          (527)  Operating expenses**                        (7 378)           (522)         (9 223)
        (888)          (557)           (55) Remeasurement items                            (771)         (7 586)        (12 892)
                                            Equity accounted profits,
           35             47             23 net of tax                                       326             641             509
        1 669          1 095            978 Operating profit                              13 672          14 916          24 239
          125             53             58 Finance income                                   807             719           1 819
        (161)           (79)          (101) Finance costs                                (1 409)         (1 080)         (2 340)
        1 633          1 069            935 Profit before tax                             13 070          14 555          23 718
        (598)          (461)          (266) Taxation                                     (3 719)         (6 277)         (8 691)
        1 035            608            669 Profit after tax                               9 351           8 278          15 027
                                           Attributable to                                                                    
          911            537            621 Owners of Sasol Limited                        8 676           7 312          13 225
                                            Non-controlling interests in
          124             71             48 subsidiaries                                     675             966           1 802
        1 035            608            669                                                9 351           8 278          15 027

          US$            US$            US$ Earnings per share                              Rand            Rand            Rand
         1,49           0,88           1,02  Basic earnings per share                      14,21           11,97           21,66
         1,49           0,88           1,02  Diluted earnings per share                    14,20           11,97           21,66

*  Supplementary non-IFRS information. US dollar convenience translation, converted at average exchange rate 
   of R13,99/US$1 (31 December 2015 - R13,62/US$1; 30 June 2016 - R14,52/US$1).
** A loss of R975 million (31 December 2015 - R1 753 million gain; 30 June 2016 - R920 million gain) arising 
   from foreign exchange contracts (FECs) has been reclassified from translation gains and losses, to other 
   operating expenses and income, in accordance with the recognition of other derivative gains and losses.
   Other operating expenses include rental, computer and insurance costs of R1 946 million (31 December 2015 -
   R1 831 million; 30 June 2016 - R3 532 million), derivative losses including FECs of R1 305 million 
   (31 December 2015 - R2 506 million gain; 30 June 2016 - R1 250 million gain), the reversal of the EGTL 
   provision of Rnil (31 December 2015 - R2 296 million; 30 June 2016 - R2 296 million), and rehabilitation 
   related costs due to new legislation at Sasolburg Operations and changes in the discount rate of R391 million 
   (31 December 2015 - R341 million gain; 30 June 2016 - R1 946 million gain).

Statement of comprehensive income
for the period ended
                                                                    Half year     Half year     Full year
                                                                    31 Dec 16     31 Dec 15     30 Jun 16
                                                                     Reviewed      Reviewed       Audited
                                                                           Rm            Rm            Rm
Profit after tax                                                        9 351         8 278        15 027
Other comprehensive income, net of tax                                                                  
Items that can be subsequently reclassified to the
income statement                                                      (6 173)        18 995        13 253
    Effect of translation of foreign operations*                      (7 414)        19 422        15 112
    Effect of cash flow hedges**                                        1 985         (558)       (2 855)
    Fair value of investments available for sale                            1          (17)           (7)
    Tax on items that can be subsequently reclassified to the
    income statement                                                    (745)           148         1 003
Items that cannot be subsequently reclassified to the
income statement                                                          491           555         (546)
    Remeasurements on post-retirement benefit obligations                 739           740         (877)
    Tax on items that cannot be subsequently reclassified to the
    income statement                                                    (248)         (185)           331                                     
Total comprehensive income for the period                               3 669        27 828        27 734
Attributable to                                                                                          
Owners of Sasol Limited                                                 3 045        26 753        25 890
Non-controlling interests in subsidiaries                                 624         1 075         1 844
                                                                        3 669        27 828        27 734

*  The impact of a stronger Rand at 31 December 2016 (R13,74/US$, R14,45/EUR) resulted in the translation loss recognised
   in other comprehensive income. At 31 December 2015 and 30 June 2016, the weaker Rand (R15,48/US$, R16,81/EUR and 
   R14,71/US$, R16,33/EUR, respectively) resulted in significant translation gains recognised in other comprehensive income 
   in the prior periods.
** Includes the impact of a R116 million (31 December 2015 - Rnil; 30 June 2016 - R97 million) reclassification to profit 
   and loss, relating to the interest rate swap. A gain of R2 billion (US$145 million) was recognised in other comprehensive 
   income during the period as a result of the significant decrease in the liability related to the interest rate swap, 
   which occurred due to the interest rate curves trading significantly higher than at 30 June 2016.

Statement of financial position
at


     Full year     Half year    Half year                                           Half year     Half year    Full year
     30 Jun 16     31 Dec 15    31 Dec 16                                           31 Dec 16     31 Dec 15    30 Jun 16
       Audited      Reviewed     Reviewed                                            Reviewed      Reviewed      Audited
         US$m*         US$m*        US$m*                                                  Rm            Rm           Rm
                                                 Assets                                                                 
        10 541         9 440       11 364        Property, plant and equipment        156 120       146 039      155 054
         7 071         5 737        8 456        Assets under construction            116 176        88 751      104 011
                                                 Goodwill and other intangible
           182           190          177        assets                                 2 428         2 945        2 680
           892           975          875        Equity accounted investments          12 024        15 088       13 118
            42            41           45        Post-retirement benefit assets           625           638          614
           230           149          240        Deferred tax assets                    3 301         2 308        3 389
           252           206          330        Other long-term assets                 4 527         3 193        3 715
        19 210        16 738       21 487        Non-current assets                   295 201       258 962      282 581
                                                 Assets in disposal groups held
            72            18           66        for sale                                 905           273        1 064
         1 618         1 595        1 766        Inventories                           24 261        24 667       23 798
         2 102         2 047        2 072        Trade and other receivables           28 471        31 659       30 913
             3            70           37        Short-term financial assets              514         1 083           42
           158           348          135        Cash restricted for use                1 852         5 380        2 331
         3 398         3 633        1 879        Cash and cash equivalents             25 813        56 201       49 985
         7 351         7 711        5 955        Current assets                        81 816       119 263      108 133
        26 561        24 449       27 442        Total assets                         377 017       378 225      390 714
                                                 Equity and liabilities                                               
        14 072        13 661       14 931        Shareholders' equity                 205 135       211 341      206 997
           368           334          397        Non-controlling interests              5 451         5 167        5 421
        14 440        13 995       15 328        Total equity                         210 586       216 508      212 418
         5 303         4 289        5 438        Long-term debt                        74 707        66 343       78 015
           193            63           45        Long-term financial liabilities          621           977        2 844
         1 279         1 031        1 238        Long-term provisions                  17 006        15 951       18 810
                                                 Post-retirement benefit
           864           718          814        obligations                           11 184        11 114       12 703
            43            33           52        Long-term deferred income                715           517          631
           611         1 705        1 855        Deferred tax liabilities              25 483        26 372       23 691
         9 293         7 839        9 442        Non-current liabilities              129 716       121 274      136 694
                                                 Liabilities in disposal groups
             -             3            -        held for sale                              -            48            -
           136           157          165        Short-term debt                        2 271         2 435        2 000
            58            16           55        Short-term financial liabilities         759           243          855
         2 625         2 399        2 444        Other current liabilities             33 582        37 098       38 611
             9            40            8        Bank overdraft                           103           619          136
         2 828         2 615        2 672        Current liabilities                   36 715        40 443       41 602
        26 561       24 449        27 442        Total equity and liabilities         377 017       378 225      390 714
        
* Supplementary non-IFRS information. US dollar convenience translation, converted at closing rate of
  R13,74/US$1 (31 December 2015 - R15,48/US$1; 30 June 2016 - R14,71/US$1).

Statement of changes in equity
for the period ended
                                                                                 Half year      Half year      Full year
                                                                                 31 Dec 16      31 Dec 15      30 Jun 16
                                                                                  Reviewed       Reviewed        Audited
                                                                                        Rm             Rm             Rm
Balance at beginning of period                                                     212 418        196 483        196 483
Shares issued on implementation of share options                                         -             54             54
Share-based payment expense                                                             98             64            123
Long-term incentive scheme converted to equity                                         645              -              -
Total comprehensive income for the period                                            3 669         27 828         27 734
Dividends paid to shareholders                                                     (5 650)        (7 140)       (10 680)
Dividends paid to non-controlling shareholders in subsidiaries                       (594)          (781)        (1 296)
Balance at end of period                                                           210 586        216 508        212 418
Comprising                                                                                                              
Share capital                                                                       29 282         29 282         29 282
Share repurchase programme                                                         (2 641)        (2 641)        (2 641)
Retained earnings                                                                  167 944        162 546        164 917
Share-based payment reserve                                                       (12 839)       (13 642)       (13 582)
Foreign currency translation reserve                                                25 946         37 605         33 316
Remeasurements on post-retirement benefit obligations                              (2 037)        (1 419)        (2 533)
Investment fair value reserve                                                           24             15             26
Cash flow hedge accounting reserve                                                   (544)          (405)        (1 788)
Shareholders' equity                                                               205 135        211 341        206 997
Non-controlling interests in subsidiaries                                            5 451          5 167          5 421
Total equity                                                                       210 586        216 508        212 418

Statement of cash flows
for the period ended


                                                                                   Half year     Half year     Full year
                                                                                   31 Dec 16     31 Dec 15     30 Jun 16
                                                                                    Reviewed      Reviewed       Audited
                                                                                          Rm            Rm            Rm
Cash receipts from customers                                                          84 341        87 885       175 994
Cash paid to suppliers and employees                                                (67 505)      (61 205)     (121 321)
Cash generated by operating activities                                                16 836        26 680        54 673
Dividends received from equity accounted investments                                     465           744           887
Finance income received                                                                  793           688         1 633
Finance costs paid                                                                   (1 587)         (955)       (3 249)
Tax paid                                                                             (3 010)       (5 195)       (9 329)
Dividends paid                                                                       (5 650)       (7 140)      (10 680)
Cash retained from operating activities                                                7 847        14 822        33 935
Total additions to non-current assets                                               (29 806)      (31 336)      (67 158)
    Additions to non-current assets                                                 (30 248)      (33 559)      (70 409)
    Increase in capital project related payables                                         442         2 223         3 251
Settlement of funding commitment on Canadian assets                                        -             -       (3 339)
Additional investments in equity accounted investments                                 (124)         (251)         (548)
Proceeds on disposals of assets                                                          125            25           569
Other net cash flow from investing activities                                            161         (433)         (558)
Cash used in investing activities                                                   (29 644)      (31 995)      (71 034)
Share capital issued on implementation of share options                                    -            54            54
Dividends paid to non-controlling shareholders in subsidiaries                         (595)         (781)       (1 296)
Proceeds from long-term debt                                                           1 182        19 025        34 008
Repayments of long-term debt                                                         (1 227)       (2 070)       (3 120)
Proceeds from short-term debt                                                            860         1 918         2 901
Repayments of short-term debt                                                          (850)       (2 328)       (3 369)
Cash (used)/generated by financing activities                                          (630)        15 818        29 178
Translation effects on cash and cash equivalents                                     (2 162)         9 285         7 069
(Decrease)/increase in cash and cash equivalents                                    (24 589)         7 930         (852)
Cash and cash equivalents at beginning of period                                      52 180        53 032        53 032
Reclassification to held for sale                                                       (29)             -             -
Cash and cash equivalents at end of period                                            27 562        60 962        52 180
                 
Salient features
for the period ended
                                                                                      Half year   Half year    Full year
                                                                                      31 Dec 16   31 Dec 15    30 Jun 16
Selected ratios                                                                                                        
Return on equity                                                                %          8,3*        7,4*          6,6
Operating profit margin                                                         %          16,1        17,7         14,0
Finance costs cover                                                         times           9,1        16,4          8,0
Net borrowings to shareholders' equity (gearing)                                %          25,0         6,2         14,6
Dividend cover - attributable basic earnings                   
per share                                                                   times           3,0         2,1          1,5
Dividend cover - headline earnings per share                                times           3,2         4,3          2,8
* Annualised.                                                                                                          
Share statistics                                                                                                       
Total shares in issue                                                     million         679,8       679,8        679,8
Sasol ordinary shares in issue                                            million         651,4       651,4        651,4
Treasury shares (share repurchase programme)                              million           8,8         8,8          8,8
Weighted average number of shares                                         million         610,7       610,6        610,7
Diluted weighted average number of shares                                 million         610,9       610,6        610,7
Share price (closing)                                                        Rand        398,90      419,40       397,17
Market capitalisation - Sasol ordinary shares                                  Rm       259 843     273 197      258 717
Market capitalisation - Sasol BEE ordinary shares                              Rm           826         778          892
Net asset value per share                                                    Rand        337,45      347,66       340,51
Dividend per share                                                           Rand          4,80        5,70        14,80
- interim                                                                    Rand          4,80        5,70         5,70
- final                                                                      Rand             -           -         9,10
                                                                                                    

                                                                       Half year          Half year          Full year
                                                                       31 Dec 16          31 Dec 15          30 Jun 16
Other financial information                                                                                          
Total debt (including bank overdraft)                               Rm    77 081             69 397             80 151
- interest-bearing                                                  Rm    75 967             69 192             79 175
- non-interest-bearing                                              Rm     1 114                205                976
Finance expense capitalised                                         Rm     1 315              1 127              2 253
Capital commitments (subsidiaries and joint  
operations)(1)                                                      Rm   111 829            119 302            137 286
- authorised and contracted                                         Rm   144 851            147 992            143 380
- authorised, not yet contracted                                    Rm    78 473             58 261             95 590
- less expenditure to date                                          Rm (111 495)           (86 951)          (101 684)
Capital commitments (equity accounted
investments)                                                        Rm       552                765                608
- authorised and contracted                                         Rm       291              1 175                175
- authorised, not yet contracted                                    Rm       492                672                756
- less expenditure to date                                          Rm     (231)            (1 082)              (323)
Guarantees (excluding treasury facilities)                                                                            
- maximum potential exposure                                        Rm    92 670            106 595             98 312
- related debt recognised on the balance sheet                      Rm    68 161             56 558             71 252
Share-based payment expenses                                        Rm       125                482                494
- Sasol cash settled share incentive schemes                        Rm        27                418                371
- Sasol equity settled share incentive schemes                      Rm        59                  -                  -
- Sasol Inzalo share transaction                                    Rm        39                 64                123
Effective tax rate                                                   %      28,4               43,1               36,6
Adjusted effective tax rate(2)                                       %      29,2               32,9               28,2
Number of employees(3)                                          number    30 300             30 369             30 100
Average crude oil price - dated Brent                       US$/barrel     47,68              46,97              43,37
Average rand/US$ exchange rate                             1US$ = Rand     13,99              13,62              14,52
Closing rand/US$ exchange rate                             1US$ = Rand     13,74              15,48              14,71

1 Excludes significant commitments under leases relating to the air separation unit in Secunda, estimated to be in a range of
  R4,5 billion - R6,5 billion.
2 Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.
3 The total number of employees includes permanent and non-permanent employees and the group's share of employees
  within joint operations, but excludes contractors and equity accounted investments' employees.

                                                                      Half year       Half year        Full year
                                                                      31 Dec 16       31 Dec 15        30 Jun 16
                                                                             Rm              Rm               Rm
Reconciliation of headline earnings                                                                            
Earnings attributable to owners of Sasol Limited                          8 676           7 312           13 225
Effect of remeasurement items for subsidiaries and 
joint operations                                                            771           7 586           12 892
    Impairment of property, plant and equipment                             442           5 470            8 424
    Impairment of assets under construction                                 191           1 988            3 586
    Impairment of goodwill and other intangible assets                      102               -              310
    Impairment of other assets                                                -             207                -
    Reversal of impairment                                                 (29)               -                -
    Loss/(profit) on disposal of non-current assets                           4              21            (389)
    (Profit)/loss on disposal of investments in
    businesses                                                             (11)            (51)              226
    Scrapping of non-current assets                                          72             230            1 099
    Write-off of unsuccessful exploration wells                               -             (3)              (3)
    Realisation of foreign currency translation reserve                       -           (276)            (361)
Tax effects and non-controlling interests                                 (223)            (79)            (846)
Effect of remeasurement items for equity
accounted investments                                                        11               7              13
Headline earnings                                                         9 235          14 826          25 284
Headline earnings adjustments per above                                                                         
- Mining                                                                      -              12              31
- Exploration and Production International                                  152           7 450           9 963
- Energy                                                                     25               4           1 267
- Base Chemicals                                                             74              52           1 723
- Performance Chemicals                                                     520             271              55
- Group Functions                                                             -           (203)           (147)
Remeasurement items                                                         771           7 586          12 892
Headline earnings per share                                   Rand        15,12           24,28           41,40
Diluted headline earnings per share                           Rand        15,12           24,28           41,40

The reader is referred to the definitions contained in the 2016 Sasol Limited financial statements.

Basis of preparation 
The condensed consolidated interim financial statements for the six months ended 31 December 2016 have
been prepared in accordance with International Financial Reporting Standards, IAS 34, Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements
of the Companies Act of South Africa, 2008, as amended, and the JSE Limited Listings Requirements.

The condensed consolidated interim financial statements do not include all the disclosure required for
complete annual financial statements prepared in accordance with IFRS as issued by the International
Accounting Standards Board. The condensed consolidated interim financial statements are prepared on a
going-concern basis. The Board is satisfied that the liquidity and solvency of the Company is sufficient to
support the current operations for the next 12 months.

These condensed consolidated interim financial statements have been prepared in accordance with the
historic cost convention except that certain items, including derivative instruments, liabilities for cash-
settled share-based payment schemes, financial assets at fair value through profit or loss and available-
for-sale financial assets, are stated at fair value.

The condensed consolidated interim financial statements are presented in South African rand, which is Sasol
Limited's functional and presentation currency.

The condensed consolidated interim financial statements appearing in this announcement are the
responsibility of the directors. The directors take full responsibility for the preparation of the condensed
consolidated interim financial statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for this
set of condensed consolidated interim financial statements and has supervised the preparation thereof in
conjunction with the Senior Vice-President: Financial Control Services, Brenda Baijnath CA(SA).

Accounting policies
The accounting policies applied in the preparation of these summarised consolidated interim financial
statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial
statements for the year ended 30 June 2016.

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 events and transactions since 30 June 2016
In accordance with IAS34, Interim Financial Reporting, we have included an explanation of events and
transactions which are significant to obtain an understanding of the changes in our financial position and
performance since 30 June 2016 in the financial results overview.

Financial instruments
Fair value
Fair value is determined using valuation techniques as outlined unless the instrument is listed in an active
market. Where possible, inputs are based on quoted prices and other market determined variables.

Fair value hierarchy
The table below represents significant financial instruments measured at fair value at the reporting date,
or for which fair value is disclosed at 31 December 2016. The US dollar bond, interest rate swap, crude oil
put options, zero-cost foreign exchange collars and coal swaps were considered to be significant financial
instruments based on the amounts recognised in the statement of financial position and the fact that
these instruments are traded in an active market. The calculation of fair value requires various inputs into
the valuation methodologies used. The source of the inputs used affects the reliability and accuracy of the
valuations. Significant inputs have been classified into the hierarchical levels in line with IFRS 13.

Level 1    Quoted prices in active markets for identical assets or liabilities.
Level 2    Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).
Level 3    Inputs for the asset or liability that are unobservable.

                                 IFRS 13     Carrying
                              fair value        value    Fair value
Instrument                     hierarchy           Rm            Rm   Valuation method      Significant inputs
Listed long-term debt            Level 1       13 819        13 725   Fair value            Quoted market
                                                                                            price for the
                                                                                            same or similar
                                                                                            instruments
Interest rate swap               Level 2      (1 009)       (1 009)   Discounted expected   Market interest
                                                                      cash flows            rate
Coal swaps                       Level 2         (30)          (30)   Discounted expected
                                                                      cash flows            Coal prices
Crude oil put options            Level 2          233           233   Numerical
                                                                      approximation         Crude oil prices
Zero-cost foreign                                                     Numerical             rand/US dollar
exchange collar                  Level 2          278           278   approximation         exchange rate

For all other financial instruments, fair value approximates carrying value.

Independent review by the auditors
These condensed consolidated interim financial statements, including the segment report for the six months 
ended 31 December 2016 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified 
conclusion thereon. The individual auditor assigned to perform the review is Mr PC Hough. A copy of the auditor's 
unmodified review report on the condensed consolidated interim financial statements is available for inspection 
at the company's registered office, together with the condensed consolidated interim financial statements 
identified in the auditor's report. The auditor's report does not necessarily report on all of the information 
contained in this announcement of interim financial results. Shareholders are therefore advised that in order to 
obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of the auditor's 
report together with the accompanying condensed consolidated interim financial statements from the company's 
registered office.

Registered office: Sasol Place, 50 Katherine Street, Sandton, Johannesburg 2196
PO Box 5486, Johannesburg 2000, South Africa
 
Share registrars: Computershare Investor Services (Pty) Ltd, 15 Bierman Avenue, Rosebank 2196
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370-7700 Fax: +27 11 370-5271/2
 
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
 
Directors (Non-Executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr MJ Cuambe (Mozambican)*,
Mr HG Dijkgraaf (Dutch)^, Ms NNA Matyumza*, Ms IN Mkhize*, Mr ZM Mkhize*, Mr MJN Njeke*,
Mr PJ Robertson (British and American)*, Mr S Westwell (British)*
Directors (Executive): Mr SR Cornell (Joint President and Chief Executive Officer) (American), Mr B Nqwababa
(Joint President and Chief Executive Officer) , Mr P Victor (Chief Financial Officer)
*Independent  ^Lead independent director
 
Company Secretary: Mr VD Kahla
 
Company registration number: 1979/003231/06, incorporated in the Republic of South Africa 
 
Income tax reference number: 9520/018/60/8
                                JSE                                     NYSE
Ordinary shares                                                          
Share code:                     SOL                                     SSL
ISIN:                           ZAE000006896                            US8038663006
                                                                         
Sasol BEE Ordinary shares                                                
Share code:                     SOLBE1                                   
ISIN:                           ZAE000151817                             
                                                                         
American depository 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, United States
of America

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, executing our growth projects and cost reductions, including
in connection with our BPEP and RP. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could",
"may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 27 September 2016 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. Normalised items include the effect of the closing rate between
2017 and 2016, share-based payments, remeasurement items, once-off rehabilitation provisions recognised due to legislation
changes and once-off tax adjustments.
 
Comprehensive additional information is available on our website: www.sasol.com 

www.sasol.com



Date: 27/02/2017 07:05:00 Supplied by www.sharenet.co.za                     
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