Sasol Limited - Expected Earnings Per Share for the Financial Year Ending 30 June 2009 to Decrease by Between 40% and 50% Compar
June 19 2009 - 5:08AM
PR Newswire (US)
JOHANNESBURG, South Africa, June 19 /PRNewswire-FirstCall/ --
Introduction At the announcement of our interim results on 9 March
2009, we expected a reduction in earnings for the full 2009
financial year compared to the 2008 financial year. It was clear at
that stage that the considerably lower prices would far outweigh
the positive effects of production volume increases and the crude
oil hedge. At the time the volatility and uncertainty of global
markets made it difficult to be more precise in this interim
results outlook statement. Earnings outlook for full year 2009
Sasol's attributable earnings per share and headline earnings per
share for the year ending 30 June 2009 are estimated to decrease by
between 40% and 50% compared to the prior year. The expected
decrease in earnings is mainly due to the lower crude oil and
chemical prices referred to above, together with a considerable
reduction in refining margins and a further deterioration in
chemical markets. This earnings guidance includes the impact of the
non-cash charges relating to the Sasol Inzalo BEE transaction and
the administrative penalties paid to the European Commission and
the South African Competition Commission. Overall group production
volumes are up mainly due to increased production volumes at the
Oryx GTL plant and the additional production volumes at the Arya
Sasol Polymers plant. The Synfuels operations in Secunda, South
Africa, are expecting production volumes to be about 4% lower than
last year. The overall deterioration in market conditions will also
result in negative stock effects, net realisable value stock
write-downs and impairments. Several assumptions have been made in
estimating the expected earnings for the full financial year 2009.
These assumptions are based on the best information currently
available. Our results may be further impacted by changes in the
oil and product prices, the impact of a much stronger rand on
closing financial assets and liabilities, additional impairments as
well as any adjustments resulting from our year-end process. This
may result in a change in the estimated earnings. Positive cash
position and a strong balance sheet position the group well Sasol
has a positive cash position and a strong balance sheet. The cash
conservation approach has ensured that Sasol continues to generate
considerable cash flows, which keep the group well-positioned in
the current economic climate, and fund our growth programme. Growth
plans remain unchanged keeping our shareholder value proposition
intact The overarching objective of our growth plans remains
unchanged, keeping our shareholder value proposition intact: 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 have
reprioritised our planned capital expenditure to R16 billion for
2009 in light of the changed market conditions, including assessing
the opportunities that the current environment presents. Sasol's
financial results for the year ending 30 June 2009 will be
announced on Monday 14 September 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 Sasol may, in this document, make statements
that are not historical facts and relate to analyses and other
information based on forecasts of future results and estimates of
amounts not yet determinable. These are forward-looking statements
as defined in the U.S. Private Securities Litigation Reform Act of
1995. 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 predictions, forecasts,
projections and other forward-looking statements will not be
achieved. If one or more of these risks materialize, or should
underlying assumptions prove incorrect, actual results may be very
different from those anticipated. The factors that could cause our
actual results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements are discussed more fully in our
registration statement under the Securities Exchange Act of 1934 on
Form 20-F filed on October 7, 2008 and in other filings with the
United States Securities and Exchange Commission. 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 for
Sasol Limited, +27 11 441 3113
Copyright