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Sasol Limited - Trading Statement For The Financial Year Ended 30 June 2017

Release Date: 25/07/2017 08:00:00      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?)

Trading statement for the financial year ended 30 June 2017

Sasol's earnings per share (EPS) for the financial year ended 30
June 2017 are expected to increase by between 48% and 58%
(approximating R10,40 to R12,56 per share) compared to the 2016
financial year (prior year) EPS of R21,66. Headline earnings per
share (HEPS) for the same year are expected to decrease by
between 11% and 21% (approximating R4,55 to R8,69 per share)
from the prior year HEPS of R41,40. The prior year EPS was
negatively impacted by the R9,9 billion impairment of our
Canadian shale gas assets.

Sasol delivered a strong business performance across most of the
value chain, with our Secunda Synfuels Operations reporting
record volumes and our Eurasian Operations delivering their
highest production volumes since 2015. However, continued
volatility in the macro-economic environment, particularly the
stronger rand and low oil price, has adversely impacted our
financial performance. Excluding the effect of our hedging
programme, the average rand/US dollar market exchange rate
strengthened by 6% from R14,52 in 2016 to R13,61, and the
closing rand/US dollar market exchange rate strengthened by 11%
from R14,71 to R13,06. This was partially offset by a 15% higher
average Brent crude oil price of US$49,77/bbl (30 June 2016 ?
US$43,37/bbl).

The highlights of our operational performance can be summarised
as follows:

- Secunda Synfuels Operations increased production volumes by 1%
  to a record 7,83 million tons;
- Natref production volumes decreased by 5%. Plant shutdowns
  during the first half of the year contributed to a 3% decrease
  in production volumes and the plant incident on 22 May 2017,
  which resulted in unintended downtime, led to a 2% reduction
  in production volumes;
- Our Eurasian Operations increased production volumes by 6% on
  the back of stronger product demand;
- ORYX GTL achieved a utilisation rate of 95% compared to 81% in
  the previous year;
- Our Performance Chemicals business reported a 2% increase in
  sales volumes, which is at the upper end of our market
  guidance, mainly as a result of stronger demand, higher
  chemical margins and improved plant stability. Our Base
  Chemicals sales volumes increased by 3%, slightly below market
  guidance, due to a fire at one of our third party warehouses;
  and
- Liquid fuels sales volumes in our Energy Business decreased by
  2% due to a higher portion of production volumes from Secunda
  Synfuels Operations allocated to our higher margin yielding
  chemical businesses and lower Natref production volumes.

Sasol?s earnings were impacted by the following notable once off
and period close items:
                                                          HEPS       EPS
Translation losses arising from a stronger closing     (R2,53)   (R2,53)
rand/US dollar market exchange rate at 30 June 2017
Mark-to-market   valuation  of   oil   and   foreign    R2,05     R2,05
exchange hedges using a forward rate at 30 June
2017
Net remeasurement items                                      ?   (R1,82)
Increase in rehabilitation provisions                  (R0,51)   (R0,51)
Provision for tax litigation claims                    (R1,49)   (R1,49)
Impact of labour actions at Sasol Mining in the        (R1,06)   (R1,06)
first half of the financial year

Included in remeasurement items is a partial impairment of our
North American GTL project amounting to R1,7 billion (US$130
million) and the reversal of a partial impairment of the Lake
Charles Chemicals Project (LCCP) amounting to R0,8 billion
(US$65 million), which resulted from lower spot discount rates
and the extension of the useful life of the project to 50 years.

A detailed production summary and key business performance
metrics for the financial year for all our businesses is
available on our website, www.sasol.com. Our results for the
financial year may be further affected by adjustments resulting
from our financial year-end closure process. This may result in
a change in the estimated earnings noted above. All references
to years refer to the financial year ended 30 June.

The financial information on which this trading statement is
based has not been reviewed and reported on by the Company's
external auditors. Sasol's financial results for the financial
year ended 30 June 2017 will be announced on Monday, 21 August
2017.

25 July 2017

Johannesburg
Sponsor: Deutsche Securities (SA) Proprietary Limited

Date: 25/07/2017 08:00:00 Supplied by www.sharenet.co.za                     
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