Wrap Text
SOL - Sasol - Interim Financial Results For The Six Months Ended
31 December 2009
Sasol Limited
(Incorporated in the Republic of South Africa)
Registration number 1979/003231/06
JSE NYSE
Share code: SOL SSL
ISIN code: ZAE000006896 US8038663006
("Sasol" or "the company")
Interim financial results for the six months ended 31 December 2009
Sasol Limited is the world`s leader in the conversion of coal and gas to
transportation fuels and chemicals.
Positioned for future growth despite challenging markets
Headline earnings per share decreased by 51% to R10,67
Overall group production volumes up
Cash fixed costs reduced
Interim dividend increased by 12% to R2,80 per share
Full pipeline of capital projects progressing well
Focused response to climate change imperative
Overview
Chief executive, Pat Davies says: "Our deliberate, intense efforts on
operational improvement and cost reduction have resulted in an overall
improvement in volumes and a reduction in unit cash costs. This is
particularly true of Sasol Synfuels which is our biggest business unit.
Economic conditions however remain challenging, with a stronger rand/US
dollar exchange rate and product prices that were significantly lower than
the record prices achieved in the prior year comparable period. While there
have been some signs of improvements in both demand and prices, we remain
committed to further improving operating efficiencies and maintaining cost
control throughout the group. We continue to rigorously review our portfolio
of projects, keeping focus on capital discipline, in order to position the
company for sustainable, long-term profitability and growth."
Earnings attributable to shareholders for the six months ended 31 December
2009 decreased by 52% from R13,2 billion in the prior year comparable period
to R6,3 billion, while earnings per share and headline earnings per share
decreased by 52% to R10,54 and by 51% to R10,67, respectively, over the same
period.
Operating profit of R10,5 billion declined by 51% compared with the prior
year comparable period. Operating profit was negatively impacted by lower
average crude oil prices (average dated Brent was US$71,42/barrel in 2009
compared with US$84,75/barrel in 2008) and chemical product prices, as well
as a 14% stronger average rand/US dollar exchange rate (R7,64/US$ in 2009
compared with R8,88/US$ in 2008). The average oil price achieved during the
prior year comparable period was positively impacted by the effect of the oil
hedges which resulted in a net gain of R5,1 billion. Similar oil hedges have
not been entered into during the current period.
The operating profit in the current period has been positively affected as a
result of fewer large once-off charges compared with the prior year
comparable period. The prior year comparable period`s once-off charges
included competition related administrative penalties of R3,9 billion and
Sasol Inzalo share-based payment expenses of R3,0 billion. The current period
includes a much lower Sasol Inzalo share-based payment expense of
R400 million.
Cash flow generated by operating activities of R9,2 billion was healthy
despite the economic crisis but was 70% lower than the prior year comparable
period. This was mainly due to reduced operating profits and increased
working capital, both as a result of price and volume effects. Progress on
the group`s pipeline of growth projects was sustained, resulting in capital
expenditure of R6,6 billion for the period.
Chief financial officer, Christine Ramon says: "Our corporate initiatives to
reduce costs commenced and achieved more than
R500 million savings in cash fixed costs for the period. This has resulted in
cost increases being well within inflationary levels across our businesses.
Furthermore, our business improvement plans aim to ensure that our businesses
remain resilient and deliver sustainable performance through the cycles. Our
cash position remains strong, cushioning the group against short-term
volatility and positioning us well for long-term growth. We continue to plan
prudently for a slow and volatile period of economic recovery. We will
maintain a flexible approach to our capital expenditure programme to deliver
long-term acceptable returns to shareholders."
Improved operation performance
South African energy cluster
Sasol Mining - higher production volumes due to improved operational
efficiencies
Operating profit of R170 million was 88% lower than the prior year comparable
period. While production volumes increased due to operational efficiencies
achieved, lower rand export coal prices resulted in lower operating profits,
compared to a spike in export coal prices in the prior year comparable
period.
Sasol Gas - lower sales volumes at lower gas prices
Operating profit decreased by 19% to R1 178 million compared with the prior
year comparable period mainly as a result of lower sales volumes and lower
gas prices. The decline in gas prices was due to lower crude oil prices and
the stronger rand/US dollar exchange rate.
Sasol Synfuels - improved plant stability results in increased production
volumes
Sasol Synfuels` operating profit decreased by 70% to R6 072 million compared
with the prior year comparable period. Improved plant stability resulted in
3% higher production volumes and a 5% reduction in unit cash costs. However,
the decrease in operating profits resulted largely from stronger rand/US
dollar exchange rates and lower average oil prices as well as increased
electricity costs. In addition, the operating profit of the prior year
comparable period included a gain of R4 904 million relating to the oil
hedge.
Sasol Oil - increased sales volumes resulting in operating profits
Sasol Oil recorded an operating profit of R680 million compared with an
operating loss of R1 626 million for the prior year comparable period. The
improvement in operating profit is largely due to increased production and
sales volumes during the current period supported by less volatile crude oil
prices. This is in contrast with the rapid decline in crude oil prices
experienced during the comparable period of the prior year which led to
negative stock effects.
International energy cluster
Sasol Synfuels International (SSI) - Oryx GTL performing well subsequent to
shutdown
SSI`s operating profit decreased by 90% to R112 million compared with the
prior year comparable period. This was mainly due to lower production at the
Oryx gas-to-liquids (GTL) plant (R133 million), lower crude oil prices and a
stronger rand/US dollar exchange rate. In addition, a once-off profit of R509
million was realised on the reduction of our economic interest in the
Escravos GTL project in the prior year comparable period.
The Oryx GTL plant is producing well, following the unplanned shutdown during
the second quarter of 2010. A planned statutory shutdown for maintenance work
is scheduled to take place in the fourth quarter of 2010.
Sasol Petroleum International (SPI) - additional exploration acreage acquired
Operating profit decreased by 77% to R231 million compared with the prior
year comparable period, mainly due to lower oil and gas prices and a stronger
rand/US dollar exchange rate. Significant exploration acreage of 15 547
square kilometres and 500 square kilometres was added to SPI`s existing
Mozambican and Australian holdings respectively, during the period. SPI`s
project to expand the Central Processing Facility in Temane, Mozambique from
the current annual rate of 120 million gigajoules to 183 million gigajoules
is progressing and remains on schedule for completion in 2011.
Chemical cluster
Sasol Polymers - increase in sales volumes
Sasol Polymers reflected an operating loss of R137 million compared with an
operating profit of R1 107 million for the prior year comparable period
mainly due to foreign exchange translation differences incurred in our
international businesses and lower polymer sales prices which prevailed in
the markets. Sales volumes were marginally higher in both local and foreign
businesses as a result of capital investments made in recent years.
Sasol Solvents - sales volumes stabilising
Operating profit decreased by 85% to R204 million compared with the prior
year comparable period following certain production and plant interruptions
coupled with lower selling prices. Sales volumes are gradually returning to
pre-economic crisis levels. A stronger rand against the US dollar has,
however, resulted in significantly lower margins being achieved.
Sasol Olefins & Surfactants (Sasol O&S) - turnaround bearing fruit
Operating profit increased by 570% to R904 million compared with the prior
year comparable period, mainly as a result of improved margins and positive
stock effects which were partially offset by foreign exchange impacts. In
addition, Sasol O&S`s turnaround and restructuring activities, including an
ongoing focus on cost containment and asset restructuring, have continued to
provide a strong foundation for sustainable business recovery.
Other chemical businesses - improved sales volumes in European wax market and
the fertilisers market
Other chemical businesses recorded an operating profit of
R492 million compared with an operating loss of R2 741 million for the prior
year comparable period. The prior year included once-off items such as the
European Commission administrative penalty relating to Sasol Wax GmbH and the
administrative penalty payable by Sasol Nitro to the South African
Competition Commission. Improved sales volumes were achieved in the European
wax market and the fertiliser markets, although the South African operations
were impacted negatively by a stronger rand/US dollar exchange rate.
Competition law compliance
Regarding competition law, we are focused on further enhancing Sasol`s
competition law compliance processes and systems throughout the group.
There are matters that remain subject to investigation. As previously
announced, the South African Competition Commission has initiated
investigations in respect of some of the industries in which Sasol
participates, including the South African piped gas, petroleum, fertiliser,
wax and polymer industries. We continue to interact and cooperate with the
Competition Commission in respect of the leniency applications as well as in
the areas that are subject to Competition Commission investigations. As and
when appropriate, we will make further announcements in respect of material
matters.
Sustaining Sasol into the future
Developments in the sustainable development area include the following:
- In November 2009, we signed a memorandum of understanding with Gassnova
SF, a Norwegian state-owned enterprise responsible for managing carbon
capture and storage (CCS), which will allow us to explore the possibility
of becoming a participant in the European CO2 Technology Centre Mongstad,
currently under construction in Norway.
- The recordable case rate for employees and service providers, including
injuries and illnesses, was 0,51 at 31 December 2009 compared to 0,54 at
30 June 2009. Although this is within global industry norms, we remain
committed to further improvement.
- The group was rated a level 5 contributor by Empowerdex in respect of our
broad-based black economic empowerment (BBBEE) procurement process,
meaning that for each R1,00 spent on Sasol products, customers receive
R0,80 BBBEE preferential procurement recognition. We are making good
progress toward becoming a level 4 contributor.
Growth projects advancing
Our cash flow has allowed the pipeline of capital projects to advance:
- In December 2009, the Project Application Report for the China coal-to-
liquids (CTL) plant was submitted to the Chinese Government for approval.
Applications will also be submitted for the mines and catalyst plants
required for the project during the 2010 calendar year.
- In line with our strategy to acquire natural gas assets for potential GTL
feedstock, progress has been made in three areas:
- In November 2009, SPI acquired exploration rights for two offshore
licenses in Mozambique adjacent to the offshore Block 16/19, namely
Sofala and M-10 in which SPI holds participating interests of 100% and
50%, respectively. Success in these areas will allow for the possible
development of the entire area, including Block 16/19.
- In December 2009, SPI signed a Farm-in Agreement with Finder
Exploration Pty Limited for a 45% participating interest in Block AC/P
52 situated in the gas-rich Browse Basin of the North Western Shelf of
Australia. This transaction was approved by the Australian Government
in January 2010.
- SPI submitted a joint application with Statoil ASA and Chesapeake
Energy Corporation, in November 2009, for an onshore petroleum
exploration right in the Karoo Basin in the central region of South
Africa. The application, for the proposed exploration of shale gas
resources, is expected to take about 12 months to process.
- In South Africa, coal blasting and extraction of the 170 000 ton sample
of coal on Project Mafutha (a proposed greenfields CTL facility)
commenced in November 2009. Coal gasification trials are planned for the
middle of the 2010 calendar year. The cost thereof is included in the R1
billion already committed for the pre-feasibility study.
- Sasol Wax will invest R8,4 billion to double hard wax production at our
Sasolburg facilities in South Africa. The first phase of this project,
which will increase capacity by about 40%, will come into operation
during the 2012 calendar year. Completion of the second phase is expected
in the 2014 calendar year.
- Sasol Solvents commenced basic engineering for the first commercial
installation of its tetramerisation technology in the United States. The
initial commercial unit will have a combined capacity of 100 000 tons per
annum of 1-octene and 1-hexene which are co-monomers used in the plastics
industry. Construction is expected to begin in the 2011 calendar year.
Continued cash conservation maintains low gearing
Gearing at 31 December 2009 of 3,7% (30 June 2009: negative 1,2%) remained
low as a result of capital expenditure reprioritisation. This low level of
gearing is expected to be maintained in the short-term, but is likely to
return to within our targeted range of 20% to 40% in the medium to long term
as our large capital intensive growth programme gains momentum. At the annual
general meeting of 27 November 2009, shareholders renewed the authority to
buy back up to 4% of the issued share capital for a further 12 months. No
shares have been repurchased during the current period.
Profit outlook* - we remain cautious in our outlook
There has been some stability in global chemical markets and it is
anticipated that this will continue in the second half of the year. Although
the current levels of chemical product demand and product prices currently
lag behind crude oil prices, the strength of the rand/US dollar exchange rate
remains the single biggest external factor exerting pressure on our
profitability. Crude oil prices have increased from the lows of a year ago
and have remained stable in the US$70-80 per barrel range.
We are anticipating some improvement in overall production volumes for the
full year. Taking into account, however, the continuing challenging economic
conditions and our assumptions in respect of crude oil and product prices,
tight refining margins as well as the stronger rand/US dollar exchange rate,
we remain cautious in our outlook for the full year compared with 2009. The
current volatility and uncertainty of global markets makes it difficult to be
more precise in this outlook statement.
The board has decided to increase the interim dividend given the signals of
recovery seen in the global economy and the proactive measures taken by
management in response to the global economic crisis. Focus remains on the
company`s growth strategy in the interest of the preservation of long-term
shareholder value. We expect to maintain our dividend policy within the
targeted range of 2,5 times to 3,5 times annual earnings cover for the full
year dividend.
*In accordance with standard practice, it is noted that this information has
not been reviewed or reported on by the company`s auditors.
Acquisitions and disposals of businesses
With effect from 30 September 2009, Sasol O&S disposed of its inorganics
business in Italy for a consideration of EUR0,6 million.
With effect from 24 November 2009, SPI acquired a participation right in the
Sofala and M-10 Blocks in Mozambique for a purchase consideration of US$7,4
million.
Declaration of cash dividend number 61
An interim cash dividend of South African R2,80 per ordinary share (2008:
R2,50 per share) has been declared. The interim cash dividend is payable on
all ordinary shares, excluding the Sasol preferred ordinary shares.
The salient dates for holders of ordinary shares are:
Last day for trading to qualify for and Wednesday, 31 March 2010
participate in the interim dividend (cum
dividend)
Trading ex dividend commences Thursday, 1 April 2010
Record date Friday, 9 April 2010
Dividend payment date Monday, 12 April 2010
Holders of American Depositary Receipts*
Ex dividend on New York Stock Exchange Wednesday, 7 April 2010
Record date Friday, 9 April 2010
Date for currency conversion Tuesday, 13 April 2010
Dividend payment date Friday, 23 April 2010
* All dates are approximate as the NYSE approves the record date after
receipt of the dividend declaration.
On Monday, 12 April 2010, 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, 12 April 2010.
Share certificates may not be dematerialised or re-materialised between
Thursday, 1 April 2010 and Friday, 9 April 2010, both days inclusive.
On behalf of the board
Hixonia Nyasulu Pat Davies Christine Ramon
Chairman Chief executive Chief financial officer
Sasol Limited
5 March 2010
Forward-looking statements: In this document we 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 9 October 2009 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. All references to
years refer to the financial year ended 30 June. Any reference to a calendar
year is prefaced by the word "calendar".
Registered office:
Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196,
PO Box 5486, Johannesburg 2000, South Africa
Share registrars:
Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg 2001, PO Box 61051, Marshalltown 2107, South
Africa, Tel: +27 11 370-7700 Fax: +27 11 370-5271/2
Sponsor:
Deutsche Securities (SA) (Pty) Limited
Directors (non-executive):
TH Nyasulu (Chairman), C Beggs*, BP Connellan*,
HG Dijkgraaf (Dutch)*, MSV Gantsho*, A Jain (Indian), IN Mkhize*, MJN Njeke*,
JE Schrempp* (German)+, TA Wixley*
(executive):
LPA Davies (Chief executive), KC Ramon (Chief financial officer), VN Fakude
*Independent +Lead independent director
Company secretary: NL Joubert
American depositary receipts (ADR) program:
Cusip number 803866300 ADR to ordinary share 1:1
Depositary: The Bank of New York Mellon, 22nd floor, 101 Barclay Street, New
York, NY 10286, USA
Segment report
for the period ended
Turnover R million
Business unit analysis full year half year half year 31
30 Jun 09 31 Dec 08 Dec 09
Audited Reviewed Reviewed
South African energy cluster 103 358 64 275 45 899
Mining 8 297 4 692 3 623
Gas 5 666 3 276 2 582
Synfuels 37 701 24 456 16 370
Oil 51 694 31 851 23 324
Other - - -
International energy cluster 5 166 3 022 1 926
Synfuels International 3 027 1 764 1 098
Petroleum International 2 139 1 258 828
Chemical cluster 81 913 48 682 33 734
Polymers 15 525 8 643 6 408
Solvents 18 115 10 568 7 498
Olefins & Surfactants 29 534 18 253 11 507
Other chemical businesses 18 739 11 218 8 321
Other businesses* 5 209 2 613 2 851
195 646 118 592 84 410
Intercompany company turnover (57 810) (35 474) (26 338)
137 836 83 118 58 072
Operating profit R million
Business unit analysis half year half year full year 30
31 Dec 09 31 Dec 08 Jun 09
Audited Reviewed Reviewed
South African energy cluster 8 097 21 754 28 684
Mining 170 1 434 1 593
Gas 1 178 1 448 2 424
Synfuels 6 072 20 562 25 188
Oil 680 (1 626) (351)
Other (3) (64) (170)
International energy cluster 343 2 073 880
Synfuels International 112 1 072 (235)
Petroleum International 231 1 001 1 115
Chemical cluster 1 463 (133) (2 244)
Polymers (137) 1 107 946
Solvents 204 1 366 495
Olefins & Surfactants 904 135 ( 160)
Other chemical businesses 492 (2 741) (3 525)
Other businesses* 565 (2 210) (2 654)
10 468 21 484 24 666
* Includes share-based payment expenses related to the Sasol Inzalo share
transaction.
The interim financial statements are presented on a condensed consolidated
basis.
Statement of financial position at
31 Dec 09 31 Dec 08 30 Jun 09
Reviewed Reviewed Audited
Rm Rm Rm
Assets
Property, plant and equipment 68 807 68 198 70 370
Assets under construction 18 832 16 366 14 496
Goodwill 790 937 805
Other intangible assets 1 026 911 1 068
Investments in associates 3 015 2 102 2 170
Post-retirement benefit assets 782 781 716
Deferred tax assets 959 1 662 1 184
Other long-term assets 2 148 3 360 2 045
Non-current assets 96 359 94 317 92 854
Assets held for sale 19 31 86
Inventories 15 898 19 190 14 589
Trade and other receivables 18 962 22 605 17 117
Short-term financial assets 456 4 401 520
Cash restricted for use 972 1 651 1 247
Cash 15 822 21 360 19 425
Current assets 52 129 69 238 52 984
Total assets 148 488 163 555 145 838
Equity and liabilities
Shareholders` equity 86 317 89 638 83 835
Non-controlling interest 2 374 2 142 2 382
Total equity 88 691 91 780 86 217
Long-term debt 14 119 21 224 13 615
Long-term financial liabilities 66 48 143
Long-term provisions 5 977 5 526 5 729
Post-retirement benefit 4 565 4 976 4 454
obligations
Long-term deferred income 277 354 297
Deferred tax liabilities 9 578 10 247 9 168
Non-current liabilities 34 582 42 375 33 406
Liabilities in disposal groups 5 - 65
held for sale
Short-term debt 4 671 1 833 4 762
Short-term financial 303 193 354
liabilities
Other current liabilities 20 020 27 044 20 954
Bank overdraft 216 330 80
Current liabilities 25 215 29 400 26 215
Total equity and liabilities 148 488 163 555 145 838
Statement of cash flows
for the period ended
half year half year full year
31 Dec 09 31 Dec 08 30 Jun 09
Reviewed Reviewed Audited
Rm Rm Rm
Cash receipts from customers 55 868 86 255 144 963
Cash paid to suppliers and employees (46 679) (55 447) (96 776)
Cash generated by operating activities 9 189 30 808 48 187
Finance income received 616 1 236 2 264
Finance expenses paid (811) (1 155) (2 168)
Tax paid (2 783) (5 697) (10 252)
Dividends paid (3 654) (5 674) (7 193)
Cash retained from operating 2 557 19 518 30 838
activities
Additions to non-current assets (6 573) (6 952) (15 672)
Acquisition of businesses - (53) (30)
Cash obtained on acquisition of - 19 19
businesses
Disposal of businesses 13 3 487 3 486
Other net cash flows from investing (528) 100 (321)
activities
Cash utilised in investing activities (7 088) (3 399) (12 518)
Share capital issued 110 1 089 1 154
Share repurchase programme - (1 114) (1 114)
Contributions from non-controlling 5 369 406
shareholders
Dividends paid to non-controlling (222) (526) (583)
shareholders
Increase in long-term debt 631 3 896 755
Decrease in short-term debt (3) (1 758) (1 811)
Cash effect of financing activities 521 1 956 (1 193)
Translation effects on cash and cash (4) 271 (870)
equivalents of foreign operations
Movement in cash and cash equivalents (4 014) 18 346 16 257
Cash and cash equivalents at beginning 20 592 4 335 4 335
of period
Cash and cash equivalents at end of 16 578 22 681 20 592
period
Income statement
for the period ended
half year half year full year
31 Dec 09 31 Dec 08 30 Jun 09
Reviewed Reviewed Audited
Rm Rm Rm
Turnover 58 072 83 118 137 836
Cost of sales and services rendered (37 529) (50 747) (88 508)
Gross profit 20 543 32 371 49 328
Other operating income 264 454 1 021
Marketing and distribution expenditure (3 195) (4 018) (7 583)
Administrative expenditure (4 304) (4 114) (9 050)
Other operating expenditure (2 840) (3 209) (9 050)
Competition related administrative - (3 678) (3 947)
penalties
Effect of crude oil hedges (73) 4 627 4 603
Share-based payment expenses (524) (3 044) (3 325)
Effect of remeasurement items (105) 320 (1 469)
Translation (losses)/gains (781) 1 501 (166)
Other expenditure (1 357) (2 935) (4 746)
Operating profit 10 468 21 484 24 666
Finance income 626 836 1 790
Share of profits of associates (net of 57 233 270
tax)
Finance expenses (996) (1 321) (2 531)
Profit before tax 10 155 21 232 24 195
Taxation (3 654) (8 258) (10 480)
Profit for the period 6 501 12 974 13 715
Attributable to
Owners of Sasol Limited 6 297 13 216 13 648
Non-controlling interest in 204 (242) 67
subsidiaries
6 501 12 974 13 715
Earnings per share Rand Rand Rand
Basic earnings per share 10,54 22,17 22,90
Diluted earnings per share1 11,14 21,79 22,80
1 Diluted earnings per share are calculated taking the Sasol Share Incentive
Scheme and Sasol Inzalo share transaction into account.
Statement of comprehensive income
for the period ended
half year half year full year
31 Dec 09 31 Dec 08 30 Jun 09
Reviewed Reviewed Audited
Rm Rm Rm
Profit for the period 6 501 12 974 13 715
Other comprehensive income
Effect of translation of foreign (755) 2 073 (2 485)
operations
Effect of cash flow hedges 50 146 (497)
Investments available-for-sale 4 (3) -
Tax on other comprehensive income 3 - 101
Other comprehensive income for the (698) 2 216 (2 881)
period, net of tax
Total comprehensive income for the 5 803 15 190 10 834
period
Attributable to
Owners of Sasol Limited 5 594 15 445 10 796
Non-controlling interests in 209 (255) 38
subsidiaries
5 803 15 190 10 834
Statement of changes in equity
for the period ended
half year half year full year
31 Dec 09 31 Dec 08 30 Jun 09
Reviewed Reviewed Audited
Rm Rm Rm
Opening balance 86 217 78 995 78 995
Shares issued during period 110 1 089 1 154
Repurchase of shares - (1 114) (1 114)
Share-based payment expenses 432 3 004 3 293
Disposal of businesses - 414 425
Change in shareholding of subsidiaries 5 402 406
Total comprehensive income for the 5 803 15 190 10 834
period
Dividends paid (3 654) (5 674) (7 193)
Dividends paid to non-controlling (222) (526) (583)
shareholders in subsidiaries
Closing balance 88 691 91 780 86 217
Comprising
Share capital 27 135 26 957 27 025
Share repurchase programme (2 641) (2 641) (2 641)
Sasol Inzalo share transaction (22 054) (22 051) (22 054)
Retained earnings 77 525 75 958 74 882
Share-based payment reserve 6 265 5 544 5 833
Foreign currency translation reserve 184 5 488 939
Investment fair value reserve 6 (2) 2
Cash flow hedge accounting reserve (103) 385 (151)
Shareholders` equity 86 317 89 638 83 835
Non-controlling interest in 2 374 2 142 2 382
subsidiaries
Total equity 88 691 91 780 86 217
Salient features
for the period ended
Selected ratios half half full
year 31 year 31 year 30
Dec 09 Dec 08 Jun 09
Return on equity % 14,8* 31,8* 17,0
Return on total assets % 15,2* 29,8* 18,7
Operating margin % 18,0 25,8 17,9
Finance expense cover times 13,7 19,5 12,3
Dividend cover times 3,9 9,1 2,8
*Annualised
Share statistics
Total shares in issue million 666,8 665,2 665,9
Treasury shares (share million 8,8 8,8 8,8
repurchase programme)
Weighted average number of million 597,2 596,0 596,1
shares
Diluted weighted average million 614,8 613,5 614,0
number of shares
Share price (closing) Rand 298,00 280,02 269,98
Market capitalisation Rm 198 706 186 269 179 780
Net asset value per share Rand 145,09 150,35 141,14
Dividend per share Rand 2,80 2,50 8,50
Other financial information
Total debt (including bank
overdraft)
- interest bearing Rm 18 373 22 742 17 814
- non-interest bearing Rm 633 645 643
Finance expense capitalised Rm 20 42 34
Capital commitments Rm 34 202 25 983 25 309
- authorised and contracted Rm 27 272 23 489 22 492
- authorised, not yet Rm 25 341 18 202 17 038
contracted
- less expenditure to date Rm (18 411) (15 708) (14 221)
Guarantees and contingent
liabilities
- total amount Rm 27 856 37 524 29 545
- liability included in the Rm 14 200 9 874 12 795
statement of financial
position
Significant items in operating
profit
- employee costs Rm 8 151 8 373 17 532
- depreciation and Rm 3 153 3 028 6 245
amortisation of non-current
assets
- share-based payment expenses Rm 524 3 044 3 325
Effective tax rate1 % 36,0 38,9 43,3
Number of employees number 33 318 34 023 33 544
Average crude oil price - US$/barrel 71,42 84,75 68,14
dated Brent
Average rand/US$ exchange rate 1US$ = Rand 7,64 8,88 9,04
Closing rand/US$ exchange rate 1US$ = Rand 7,41 9,49 7,73
1 Decrease in effective tax
rate as a result of the
absence of competition related
administrative penalties and
lower share-based payment
expenses, both of which are
not deductible for tax.
Reconciliation of headline Rm Rm Rm
earnings
Profit for the period 6 297 13 216 13 648
attributable to owners of
Sasol Limited
Effect of remeasurement items 105 (320) 1 469
Impairment of assets 47 156 458
Loss/(profit) on disposal of 5 (509) -
business
Profit on disposal of (7) - -
associate
Loss/(profit) on disposal of 1 (9) 761
assets
Scrapping of non-current 59 42 234
assets
Write off of unsuccessful - - 16
exploration wells
Tax effects and non- (29) 167 35
controlling interests
Headline earnings 6 373 13 063 15 152
Remeasurement items per above
Mining 4 (1) 3
Gas - 6 4
Synfuels 15 21 137
Oil 2 - (3)
Synfuels International - (509) 777
Petroleum International - - 18
Polymers 16 (3) (1)
Solvents 37 43 158
Olefins & Surfactants 19 79 106
Other chemical businesses 8 34 246
Nitro 13 30 219
Wax (5) 4 27
Other businesses 4 10 24
Remeasurement items 105 (320) 1 469
Headline earnings per share Rand 10,67 21,92 25,42
Diluted headline earnings per Rand 11,26 21,54 25,25
share
The reader is referred to the definitions contained in the 2009 Sasol Limited
annual financial statements.
Basis of preparation and accounting policies
The condensed consolidated interim financial results for the six months ended
31 December 2009 have been prepared in compliance with the Listings
Requirements of the JSE Limited, International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (in
particular International Accounting Standard 34 Interim Financial Reporting)
and the South African Companies Act, 1973, as amended.
The accounting policies applied in the presentation of the interim financial
results are consistent with those applied for the year ended 30 June 2009,
except as follows:
Sasol Limited has early adopted the following standards, except if otherwise
stated, which did not have a significant impact on the financial results:
* IAS 23 (Revised), Borrowing Costs (effective 1 July 2009).
* IAS 24 (Amendment), Related Party Disclosures.
* Various improvements to IFRSs.
These condensed consolidated interim financial results have been prepared in
accordance with the historic cost convention except that certain items,
including derivatives and available-for-sale financial assets, are stated at
fair value.
The condensed consolidated interim financial results are presented in rand,
which is Sasol Limited`s functional and presentation currency.
Related party transactions
The group, in the ordinary course of business, entered into various sale and
purchase transactions on an arm`s length basis at market rates with related
parties.
Independent review by the auditors
The condensed consolidated statement of financial position at 31 December
2009 and the related condensed consolidated income statement, statements of
comprehensive income, changes in equity and cash flows for the six months
then ended was reviewed by KPMG Inc. The individual auditor assigned to
perform the review is
Mr AW van der Lith. Their unmodified review report is available for
inspection at the registered office of the company.
e-mail: investor.relations@sasol.com
Comprehensive additional information is available on our website:
www.sasol.com
Johannesburg
8 March 2010
Sponsor: Deutsche Securities (SA)(Pty) Limited
Date: 08/03/2010 07:05:09 Supplied by www.sharenet.co.za
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