Sasol Limited: Expected Earnings for the Six Months Ended 31 December 2008 and Revised Outlook for the Financial Year Ending 30
January 21 2009 - 10:21AM
PR Newswire (US)
Share codes: JSE - SOL; NYSE - SSL JOHANNESBURG, South Africa, Jan.
21 /PRNewswire-FirstCall/ -- 1. Expected earnings for the six
months ended 31 December 2008 Sasol's attributable earnings per
share and headline earnings per share for the six months ended 31
December 2008 are estimated to increase by between 55% and 65% over
the comparable previous reporting period. The expected increase in
earnings is mainly due to the weakening of the rand against the US
dollar and an increase in crude oil and product prices compared to
the corresponding six months of the previous reporting period.
Overall production volumes were also higher as a result of
additional capacity and improved operations. 2. Revised outlook for
financial year ending 30 June 2009 Market conditions have
deteriorated in recent months due to the global economic downturn,
with lower than expected crude oil and product prices as well as
lower product demand. These impacts are partially mitigated by the
weakening of the rand against the US dollar and the positive impact
of the synfuels hedge to end May 2009. Sasol's outlook statement
given at the time of the announcement of our annual results on 8
September 2008 of 'robust growth forecast for 2009' is thus revised
to 'a moderate reduction in earnings forecast for 2009 compared to
the prior year'. Several assumptions have been made in estimating
the expected earnings for the full financial year 2009. These
assumptions take cognisance of the volatile market conditions and
will be regularly reviewed over the remainder of the financial
year. This may result in a change in the estimated earnings. Sasol
announced on 19 January 2009 that it is systematically undertaking
comprehensive group-wide reviews of its compliance with competition
law. This trading statement excludes any provision for fines or
penalties that may be imposed by the South African Competition
Commission. 3. Maintaining a strong cash position Sasol has a
positive cash position and a strong balance sheet, and has entered
a cash conservation mode given the global economic crisis. Sasol
continues to generate considerable cash flows, which keep the group
well-positioned in the current economic climate as well as meeting
all existing debt service requirements. We are responding to the
global economic crisis by continuing to manage our balance sheet
prudently and have lowered our targeted gearing (net debt to equity
ratio) from the previous range of 30% - 50% to 20% - 40%. Our focus
remains on sustainable cost containment and improving business
operational efficiencies. The overarching objective of our growth
plans remains unchanged: to ensure prudent management of our
resources while pursuing those projects and programmes that are in
the best interests of our shareholders and other valued
stakeholders. Therefore, we are reviewing and reprioritising our
planned capital expenditure of R16bn for 2009 (R70bn for the 3
years 2009-2011) in the light of the changed market conditions,
including assessing the opportunities that the current environment
presents. 4. Project update In the near future Sasol will post on
its website (http://www.sasol.com/) an update of its South African
and international projects. Sasol's financial results for the six
months ended 31 December 2008 will be announced on Monday, 9 March
2009. The above information has not been reviewed or reported on by
the Company's auditors. Sasol Investor Relations Tel.: +27 11 441
3113 / 3563 / 3321 Forward looking statements In this announcement
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 7 October 2008 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. DATASOURCE: Sasol Limited
CONTACT: Sasol Investor Relations: +27-11-441-3113 / 3563 / 3321,
Web Site: http://www.sasol.com/
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