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Trading statement for the six months ended 31 December 2012
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 six months ended 31 December 2012
Shareholders are advised that Sasol’s headline earnings per
share (HEPS) for the six months ended 31 December 2012 are
expected to increase by between 0% and 5%, and earnings per
share (EPS) for the six months ended 31 December 2012 are
expected to decrease by between 10% and 20%, compared to the
prior comparable period. The decline in the earnings per
share is due to the impairment of our share of the investment
in Arya Sasol Polymers Company (ASPC), which is detailed
further below.
Although Sasol’s profitability for the 2013 financial year to
date benefited from the improved production performance of its
foundation businesses, as well as the effect of an 11%
weakening of the average rand/US dollar exchange rate, this
has been largely offset by a softening in the average Brent
crude oil price, depressed chemical prices and a product
margin squeeze that negatively impacted our chemical
businesses. In addition, cost inflation was compounded by the
weaker rand as well as higher labour and maintenance costs.
We continue to actively engage with interested parties to
divest from our share in ASPC. During the current reporting
period, the investment was impaired by R1 974 million based on
our assessment of the fair value of the asset, which takes
into account the uncertainty associated with the Iranian
environment in which we operate. In terms of International
Financial Reporting Standards (IFRS), further losses relating
to the foreign currency translation reserve of approximately
US$100 million may be recognised in income once we finally
divest from ASPC. There may be further potential impairments
linked to the fair value of the asset as a result of a
deteriorating Iranian environment and the accounting
requirement to continue recognising operating profits, which
might not be recuperated through the divestiture. Despite a
solid operational performance by ASPC, results for the six
month reporting period have been negatively impacted by the
devaluation of the Iranian currency, which resulted in
translation losses of approximately R1 015 million being
recognised in the income statement.
Our financial results for the six months ended 31 December
2012 may be further affected by any adjustments resulting from
our half-year end closure process. This may result in a change
in the estimated earnings.
This trading statement only deals with the comparison to the
first half of the 2012 financial year. The lower earnings base
of the second half of the 2012 financial year, which included
significant once-off charges and reporting period end
adjustments, will strongly influence a comparison of the full
2013 financial year results with 2012. Guidance will be
provided on the full 2013 financial year results when there is
a reasonable degree of certainty in this regard.
The financial information on which this trading statement is
based has not been reviewed or reported on by the Company's
external auditors.
Sasol remains a strong cash generator and maintains its solid
financial position. We accordingly remain committed to our
progressive dividend policy, which supports a minimum total
dividend equal to our 2012 full year dividend, barring any
material and unforeseen events or significant fluctuations in
the global macroeconomic environment.
Sasol's financial results for the six months ended 31 December
2012 will be announced on Monday, 11 March 2013.
Sponsor: Deutsche Securities (SA) (Pty) Ltd
8 February 2013
Forward-looking statement disclaimer:
Sasol may, in this document, make certain statements that are
not historical facts and relate to analyses and other
information which are based on forecasts of future results and
estimates of amounts not yet determinable. These statements
may also relate to our future prospects, developments and
business strategies. Examples of such forward-looking
statements include, but are not limited to, statements
regarding exchange rate fluctuations, volume growth, increases
in market share, total shareholder return and cost reductions.
Words such as “believe”, “anticipate”, “expect”, “intend”,
“seek”, “will”, “plan”, “could”, “may”, “endeavour” and
“project” and similar expressions are intended to identify
such forward-looking statements, but are not the exclusive
means of identifying such statements. By their very nature,
forward-looking statements involve inherent risks and
uncertainties, both general and specific, and there are risks
that the predictions, forecasts, projections and other
forward-looking statements will not be achieved. If one or
more of these risks materialise, or should underlying
assumptions prove incorrect, our actual results may differ
materially from those anticipated. You should understand that
a number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements. These factors are discussed more fully in our most
recent annual report under the Securities Exchange Act of 1934
on Form 20-F filed on 12 October 2012 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.
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