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SOL
SOL
SOL - Sasol Limited - Interim Financial Results For The Six Months
Ended 31 December 2007 and dividend declaration
Sasol Limited
(Incorporated in South Africa)
(Registration number: 1979/003231/06)
ISIN Code: ZAE000006896
Share Code: SOL
NYSE Code: SSL
("Sasol" or "the Company")
Interim financial results for the six months ended 31 December 2007
Sasol Limited is the world`s leader in the conversion of coal and gas to
transportation fuels and chemicals.
- operating profit up 15% to R14,0 billion
- synfuels volumes up 4%
- headline earnings per share up 18% to R14,56
- interim dividend up 18% to R3,65 per share
- share repurchase programme advanced, gearing increased to 32%
- turnaround of several businesses succeeding
- transformation progressing
These results and other related information are available on: www.sasol.com
Segment report for the period ended
Turnover Business unit Operating profit
Rm analysis Rm
full half half half half full
year year year year year year
30 31 31 31 31 30
Jun 07 Dec 06 Dec 07 Dec 07 Dec 06 Jun 07
Audited Reviewed Reviewed Reviewed Reviewed Audited
77 019 38 670 45 315 South African 11 334 10 869 21 775
energy
cluster
6 042 2 837 3 387 Mining 565 411 1 171
3 702 1 878 2 173 Gas 923 1 167 1 936
29 084 14 694 16 987 Synfuels 7 815 8 360 16 251
38 191 19 261 22 768 Oil 2 031 931 2 417
1 465 761 1 407 International 35 (14) (463)
energy
cluster
65 82 577 Synfuels (274) (366) (763)
International
1 400 679 830 Petroleum 309 352 300
International
58 881 29 149 31 804 Chemical 2 396 1 165 4 293
cluster
9 410 4 661 4 749 Polymers 497 262 1 089
13 766 6 659 7 331 Solvents 556 490 1 106
22 582 11 113 12 175 Olefins & 458 - 1 140
Surfactants
13 123 6 716 7 549 Other 885 413 958
chemical
businesses
2 843 1 120 2 616 Other 245 167 16
businesses
140 208 69 700 81 142 14 010 12 187 25 621
(42 081) (21 219) (25 625) Intercompany
turnover
98 127 48 481 55 517
Overview
Chief executive Pat Davies says:
"Sasol`s continued commitments to safety, to reducing our environmental
footprint and to making progress with transformation are part of our core
values. These elements are also essential to sustaining our strong financial
performance, underpinned by a healthy balance sheet. Sasol is well-positioned
for future growth."
Earnings attributable to shareholders for the six months ended 31 December 2007
increased by 15% to R9,1 billion from R8,0 billion in the comparable period in
the previous financial year, while earnings per share and headline earnings per
share both increased by 18% over the same period, to R15,05 and R14,56
respectively.
Operating profit of R14,0 billion was 15% higher than the comparable period of
the previous financial year. The increase in operating profit was buoyed by
higher crude oil prices (average dated Brent was US$81,83/barrel in 2007
compared with US$64,59/barrel in 2006) and refined product prices, which were
partially offset by a 4% strengthening in the average exchange rate (R6,94/US$
in 2007 compared with R7,23/US$ in 2006) and softer refining margins. The
average crude oil price exceeded the cap on Sasol Synfuels and Sasol Petroleum
International oil hedges during the period September 2007 to December 2007,
resulting in a cash outflow of R465 million. The recognition of the fair value
of the oil hedge resulted in an unrealised fair value loss of R1,1 billion at
the end of the period as a result of the significant increase in crude oil
prices towards the end of December 2007.
Cash of R14,1 billion generated by operating activities represents a 4% increase
on the comparable period of the previous financial year.
Chief financial officer Christine Ramon says:
"This pleasing set of results has been achieved under favourable market
conditions, supported by continued progress in the restructuring of our overseas
chemical business and improved operating performance by our energy business.
Good progress in our capital projects such as Oryx GTL, Arya Sasol Polymers and
the Selective Catalytic Cracker at Synfuels is laying the foundation for
sustainable growth."
Focus on sustainable development yields results
Sasol`s continued focus on safety and our commitment to sustainable
development has led to tangible results:
- Our safety performance continues to improve. The recordable
case rate covering employees and service providers, including
injuries and illnesses, improved to 0,64 at 31 December 2007
from 0,72 at 30 June 2007.
- We are reducing our environmental footprint. As part of our
energy-efficiency initiatives in South Africa, an open cycle
gas turbine, which will generate electricity from waste gases,
has been ordered.
- We continue to make significant community investments in
education, health and welfare, and job creation.
Further progress with transformation
Transformation in South Africa, in line with the Department of Trade and
Industry codes on broad-based black economic empowerment, is gathering
momentum:
- The final terms of our proposed broad-based black economic
empowerment (BEE) transaction for up to 10% ownership at Sasol
Limited level will be announced soon.
- The second phase of Sasol Mining`s empowerment transaction,
valued at R1,9 billion, was announced in October 2007.
- Procurement from BEE entities reached R2,2 billion for the six
months ended 31 December 2007.
- Sasol continues to invest heavily in skills development.
- There has been a further increase in the representation of
people from designated groups in managerial, professional and
supervisory posts, from 47% at 30 June 2007 to 49% at 31
December 2007.
Significant progress with capital projects
Cash spent on capital projects amounted to R4,0 billion. Major projects
advanced include:
- Significant progress in improving operations at the Oryx GTL
plant in Qatar. The plant, which produces both ultra low
sulphur diesel and naphtha, achieved average daily production
for the six-month reporting period of 9 000 barrels per day,
while the average for December 2007 exceeded 16 000 barrels per
day.
- The Selective Catalytic Cracker at Sasol Synfuels in South
Africa is in operation and has produced ethylene, propylene and
gasoline to specification. Some remedial action is still
required to ensure sustained operation.
- Arya Sasol Polymers in Iran reached a major milestone on 5
November 2007, when the ethylene cracker produced its first on-
specification product. Sustainable ethylene production is
projected for the first quarter of the 2008 calendar year. The
low-density and high-density polyethylene polymer plants are
being commissioned and beneficial operation is expected in the
second and third quarters of the 2008 calendar year,
respectively.
- Construction of the Escravos GTL plant in Nigeria continues.
The contract terms have been modified from a fixed lump sum to
a reimbursable basis, the impact of which is still being
evaluated. A material increase in capital costs is expected.
- The Octene 3 plant in South Africa, to produce 1-octene for use
as a co-monomer in polyethylene production, is being
commissioned, with beneficial operation expected towards the
first quarter of the next financial year.
Operational review
South African energy cluster
Sasol Mining - increased sales volumes
Operating profit of R565 million was 37% higher than the comparable period a
year earlier, due primarily to increased export sales volumes at higher export
US dollar prices, greater sales volumes at higher prices to Sasol Synfuels and
improved coal quality. This increase was partially offset by lower production
resulting from certain challenging geological conditions and strike action in
October 2007.
Sasol Gas - continued growth
Operating profit decreased by 21% compared to the first six months of the
previous reporting period, to R923 million. However, taking into account the
sale of the 25% of the Republic of Mozambique Pipeline Investments Company (Pty)
Limited in the prior period, operating profit increased by 16% as a result of
increased sales volumes at higher margins, offset by higher cash fixed costs due
to increased activity.
Sasol Synfuels - increased production volumes
Production volumes were 4% higher as a result of improved plant stability,
production efficiencies and fewer planned maintenance shutdowns. The gains
associated with higher oil prices were, however, offset by the stronger rand and
the effect of the unrealised fair value loss of the oil hedge, resulting in
operating profits decreasing by 7% to R7 815 million compared to the first six
months of the previous financial year.
Sasol Oil - record results
Sasol Oil`s operating profit increased to R2 031 million, 118% higher than the
comparable period due to improved production volumes resulting from refinery
optimisation, reduced reliance on imports and increased sales volumes. Improved
margins have resulted from stronger product prices on the back of higher
prevailing crude oil prices. Growth in our retail network
to 397 convenience centres has also enhanced performance.
International energy cluster
Sasol Synfuels International (SSI) - GTL production increasing
Production at the Oryx facility in Qatar is ramping up steadily, with both
trains having operated simultaneously in December 2007. The Oryx operating
profit contributed to a decrease in operating losses of SSI to R274 million, 25%
more favourable than the comparable period a year earlier.
Sasol Petroleum International (SPI) - increased exploration activity
Operating profit decreased by 12% to R309 million compared with the first six
months of the previous financial year, due mainly to increased exploration
expenditure, partially offset by higher oil prices and increased sales volumes
from our Gabon operation.
Chemical cluster
Sasol Polymers - higher margins
Operating profit increased by 90% to R497 million, due mainly to significant
increases in margins, which have recovered off a low base. Plants from the Turbo
project have increased the fixed cost base, but the impact thereof has been
negated through foreign translation gains.
Sasol Solvents - higher sales prices achieved with relatively flat sales volumes
Operating profit increased by 13% to R556 million on the back of improved sales
prices, which negated the effect of higher raw material costs.
Sasol Olefins & Surfactants - restructuring process progressing well
An operating profit of R458 million was achieved compared to a break-even
position for the comparable period a year earlier. The first steps in the
restructuring process were the shutdown of the Baltimore and Porto Torres linear
alkyl benzene plants, cost reduction in all remaining units and efforts to
recover the increase in feedstock costs in selling prices.
Other chemical businesses - improved performance
Sasol Wax increased its operating profit by 55% to R416 million primarily due to
improved product margins and the sale of Paramelt RMC BV.
Sasol Nitro recorded an improvement of 69% in operating profit to R545 million,
primarily due to higher sales volumes in the explosives business, higher
fertiliser and ammonia selling prices, and the sale of Sasol Dyno Nobel (Pty)
Limited.
Gearing - share repurchase programme advanced
Gearing has increased from 22% at 30 June 2007 to 32% at 31 December 2007, due
primarily to the share repurchase programme.
During the current period, we repurchased a total of 22 173 525 Sasol ordinary
shares at an average price of R329,23 per share. Total shares repurchased since
the inception of the programme in March 2007 represent about 5,88% of our issued
share capital at 31 December 2007.
Profit outlook - good earnings growth for the full 2008 financial year
We are currently commissioning new production capacity at Arya Sasol and Oryx
GTL`s output is steadily increasing. We expect to see the benefits in our
earnings during the second half of the 2008 financial year and into the 2009
financial year, when production at these plants ramps up.
Taking into account our assumptions on prices and currencies, the earnings for
the full 2008 financial year will reflect good growth compared with the 2007
financial year. The effects of our BEE transactions as announced in September
2007, which are expected to have material non-cash accounting effects, have not
been taken into account in this outlook.
Disposal of businesses
On 10 July 2007, Sasol Wax disposed of its investment in Paramelt RMC BV,
operating in the Netherlands, realising a profit of R129 million.
In August 2007, Sasol Investment Company (Pty) Limited disposed of its
investment in FFS Refiners (Pty) Limited in South Africa, realising a profit of
R108 million.
On 17 September 2007, Sasol Nitro disposed of 50% of its investment in Sasol
Dyno Nobel (Pty) Limited in South Africa and realised a profit of R114 million.
On 13 November 2007, Sasol Chemical Industries Limited disposed of its joint
venture investment in African Amines (Pty) Limited in South Africa and realised
a loss of R3 million.
Post balance sheet events
Sasol Chemical Industries Limited and Mitsubishi Chemical Corporation agreed to
dissolve their Acrylates joint venture in South Africa, in terms of which Sasol
Chemical Industries Limited acquired effective control from 24 January 2008.
On 20 February 2008, the South African Minister of Finance announced that the
corporate tax rate would be reduced from 29% to 28%. The effect of this
reduction on our taxation will be reflected in our annual financial statements
for the year ended 30 June 2008.
Declaration of cash dividend number 57
An interim cash dividend of South African R3,65 per share (2007: R3,10 per
share) has been declared.
The salient dates for holders of ordinary shares are:
Last day for trading to qualify for and Friday, 4 April 2008
participate in the interim dividend (cum
dividend)
Trading ex dividend commences Monday, 7 April 2008
Record date Friday, 11 April 2008
Dividend payment date Monday, 14 April 2008
Holders of American Depositary Receipts*
Last day for trading to qualify for and Tuesday, 8 April 2008
participate in the interim dividend (cum
dividend)
Record date Friday, 11 April 2008
Date of currency conversion Tuesday, 15 April 2008
Dividend payment date Monday, 21 April 2008
*all dates approximate as the NYSE approves the record date after receipt of
the dividend declaration.
On Monday, 14 April 2008, 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 have
dematerialised their share certificates will have their accounts credited on
Monday, 14 April 2008.
Share certificates may not be dematerialised or re-materialised between Monday,
7 April 2008 and Friday, 11 April 2008, both days inclusive.
On behalf of the board
Pieter Cox Pat Davies Christine Ramon
Chairman Chief executive Chief financial officer
Sasol Limited
10 March 2008
The interim financial statements are presented on a condensed consolidated
basis.
Statement of Financial Position
At 31 Dec 07 31 Dec 06 30 Jun 07
Reviewed Reviewed Audited
Rm Rm Rm
Assets
Property, plant and equipment 54 301 42 421 50 515
Assets under construction 23 424 24 362 24 611
Goodwill 607 457 586
Other intangible assets 586 664 629
Post-retirement benefit assets 532 80 363
Deferred tax assets 808 604 845
Other long-term assets 3 080 2 697 3 134
Non-current assets 83 338 71 285 80 683
Assets held for sale 6 11 794 334
Inventories 17 028 9 004 14 399
Trade and other receivables 17 787 12 035 16 994
Short-term financial assets 239 161 22
Cash restricted for use 768 710 646
Cash 3 956 6 057 5 987
Current assets 39 784 39 761 38 382
Total assets 123 122 111 046 119 065
Equity and liabilities
Shareholders` equity 60 228 57 917 61 617
Minority interest 1 759 1 515 1 652
Total equity 61 987 59 432 63 269
Long-term debt 12 687 15 139 13 359
Long-term financial liability 51 36 53
Long-term provisions 4 048 3 643 3 788
Post-retirement benefit 3 887 2 591 3 661
obligations
Long-term deferred income 2 942 2 150 2 765
Deferred tax liabilities 8 657 7 216 8 304
Non-current liabilities 32 272 30 775 31 930
Liabilities in disposal group - 5 236 35
held for sale
Short-term debt 8 671 2 694 5 621
Short-term financial liabilities 1 318 507 383
Other current liabilities 16 971 12 084 17 282
Bank overdraft 1 903 318 545
Current liabilities 28 863 20 839 23 866
Total equity and liabilities 123 122 111 046 119 065
Note: At December 2006, Sasol O&S was classified as held for sale and all
attributable assets and liabilities relating to the disposal group were
disclosed as part of assets and liabilities held for sale.
The business was reclassified as a continuing operation during March 2007.
Income Statement
for the period ended half year half year full year
31 Dec 07 31 Dec 06 30 Jun 07
Reviewed Reviewed Audited
Rm Rm Rm
Turnover 55 517 48 481 98 127
Cost of sales and services (32 548) (30 277) (59 997)
rendered
Gross profit 22 969 18 204 38 130
Non-trading income 215 578 639
Marketing and distribution (3 226) (2 842) (5 818)
expenditure
Administrative expenditure (2 480) (2 612) (6 094)
Other operating expenditure (3 468) (1 141) (1 236)
Other expenditure1 (3 439) (885) (1 004)
Translation losses (29) (256) (232)
Operating profit 14 010 12 187 25 621
Finance income 273 363 825
Finance expenses (444) (457) (1 148)
Share of profits of associates 121 192 405
(net of tax)
Profit before tax 13 960 12 285 25 703
Taxation (4 393) (4 074) (8 153)
Profit for the period 9 567 8 211 17 550
Attributable to
Owners of Sasol Limited 9 148 7 981 17 030
Minority interests in 419 230 520
subsidiaries
9 567 8 211 17 550
Earnings per share Rand Rand Rand
Basic earnings per share 15,05 12,79 27,35
Diluted earnings per share2 14,85 12,60 27,02
1. Included in other expenditure is an unrealised fair value loss of R1,1
billion (June 2007: loss of R0,2 billion) that relates to the revaluation of
the crude oil hedge.
2. Diluted earnings per share is calculated taking the Sasol Share Incentive
Scheme into account.
Note: The income statement for December 2006 has been restated for the
effect of the reclassification of Sasol O&S as a continuing operation.
Statement of Comprehensive Income
for the period ended half year half year full year
31 Dec 07 31 Dec 06 30 Jun 07
Reviewed Reviewed Audited
Rm Rm Rm
Profit for the period 9 567 8 211 17 550
Other comprehensive income
Effect of translation of 53 (242) (258)
foreign operations
Effect of cash flow hedges (30) - -
Available-for-sale financial 1 - -
assets
Tax on other comprehensive (4) (1) -
income
Other comprehensive income
for the period, net of tax 20 (243) (258)
Total comprehensive income for 9 587 7 968 17 292
the period
Attributable to
Owners of Sasol Limited 9 169 7 743 16 772
Minority interests in 418 225 520
subsidiaries
9 587 7 968 17 292
Statement of Changes In Equity
for the period ended half year half year full year
31 Dec 07 31 Dec 06 30 Jun 07
Reviewed Reviewed Audited
Rm Rm Rm
Opening balance 63 269 52 984 52 984
Shares issued during period 262 160 332
Repurchase of shares (7 300) - (3 669)
Share based payment expense 77 92 186
Change in shareholding of 73 1 129 1 165
subsidiaries
Total comprehensive income for 9 587 7 968 17 292
the period
Dividends paid (3 597) (2 683) (4 613)
Dividends paid to minority (384) (218) (408)
shareholders
Closing balance 61 987 59 432 63 269
Comprising
Share capital 3 890 3 456 3 628
Share repurchase programme (10 969) - (3 669)
Retained earnings 66 660 53 990 61 109
Share based payment reserve 1 043 872 966
Foreign currency translation (389) (435) (443)
reserve
Investment fair value reserve 3 2 2
Cash flow hedge reserve (10) 32 24
Shareholders` equity 60 228 57 917 61 617
Minority interest 1 759 1 515 1 652
Total equity 61 987 59 432 63 269
Statement of Cash Flows
for the period ended half half full year
year year
31 31 30
Dec 07 Dec 06 Jun 07
Reviewed Reviewed Audited
Rm Rm Rm
Cash receipts from customers 54 857 49 229 97 339
Cash paid to suppliers and (40 746) (35 655) (68 914)
employees
Cash generated by operating 14 111 13 574 28 425
activities
Finance income 504 600 1 059
Financing expenses paid (935) (724) (1 816)
Tax paid (4 712) (3 557) (7 251)
Dividends paid (3 597) (2 683) (4 613)
Cash retained from operating 5 371 7 210 15 804
activities
Additions to non-current assets (4 577) (6 050) (12 045)
Acquisition of businesses - (221) (285)
Disposal of businesses 686 2 183 2 200
(Cash)/bank overdraft disposed
of
on disposal of businesses (31) 33 33
Other net cash flows from 44 (183) (441)
investing activities
Cash utilised in investing (3 878) (4 238) (10 538)
activities
Share capital issued 262 160 332
Share repurchase programme (7 300) - (3 669)
Dividends paid to minority (384) (218) (408)
shareholders
Decrease in long-term debt (2 014) (43) (13)
Increase in short-term debt 4 685 63 865
Cash effect of financing (4 751) (38) (2 893)
activities
Translation effects on cash and
cash equivalents of foreign (9) 12 (24)
operations
Movement in cash and cash (3 267) 2 946 2 349
equivalents
Cash and cash equivalents at 6 088 3 244 3 244
beginning of period
Net reclassification from held - 259 495
for sale
Cash and cash equivalents at 2 821 6 449 6 088
end of period
Salient Features
for the period ended half half full
year year year
31 Dec 31 Dec 30 Jun
07 06 07
Selected ratios
Return on equity % 15,0 14,4 29,8
Return on total assets % 11,9 11,9 24,2
Operating margin % 25,2 25,1 26,1
Borrowing cost cover times 15,4 17,6 14,8
Dividend cover times 4,2 4,2 3,0
Share statistics
Total shares in issue million 630,6 625,2 627,7
Treasury shares
(share repurchase million 37,1 - 14,9
programme)
Weighted average number million 607,7 623,8 622,6
of shares
Diluted weighted
average
number of shares million 616,0 633,5 630,3
Share price (closing) Rand 339,00 258,79 266,00
Market capitalisation Rm 213 773 161 796 166 968
Net asset value per Rand 101,48 92,64 100,55
share
Dividend per share Rand 3,65 3,10 9,00
Other financial
information
Total debt (including
bank overdraft)
- interest bearing Rm 22 661 17 681 18 925
- non-interest bearing Rm 600 600 600
Borrowing costs Rm 660 386 989
capitalized
Capital commitments Rm 21 605 13 664 18 575
- authorised and Rm 27 095 30 116 28 416
contracted
- authorised, not yet Rm 14 340 7 440 11 720
contracted
- less expenditure to Rm (19 830) (23 892) (21 561)
date
Guarantees and
contingent liabilities
- total amount Rm 31 479 33 924 35 147
- liability included on Rm 12 931 11 560 13 888
balance sheet
Significant items in
operating profit
- employee costs Rm 6 465 5 674 11 695
- depreciation and
amortisation
of non-current assets Rm 2 355 1 887 3 736
Effective tax rate % 31,5 33,2 31,7
Number of employees number 32 893 31 852 31 860
Average crude oil price
- dated Brent US$/barrel 81,83 64,59 63,95
Average rand/US$ 1US$ = Rand 6,94 7,23 7,20
exchange rate
Closing rand/US$ 1US$ = Rand 6,87 7,01 7,04
exchange rate
Reconciliation of Rm Rm Rm
headline earnings
Profit for the period 9 567 8 211 17 550
Less minority interest (419) (230) (520)
Effect of capital items (304) (162) (1 140)
Impairment of assets 27 114 208
Reversal of fair
value write-down
of disposal group held - - (803)
for sale
Fair value write-down
of
disposal group held for - 420 -
sale
Profit on disposal of (391) (748) (749)
assets
Loss on repurchase of
participation
rights in GTL venture 34 - -
Scrapping of
property, plant
and equipment 26 52 204
Tax effects and 7 (93) (93)
minority interest
Headline earnings 8 851 7 726 15 797
Capital items per above
Mining (3) 8 13
Gas - (371) (370)
Synfuels - (2) 64
Oil (26) (9) 2
Synfuels International 34 - -
Polymers - 5 9
Solvents 23 47 152
Olefins & Surfactants 6 466 (707)
Other chemical (229) 9 8
businesses
Nitro (114) - -
Wax (118) (1) (4)
Other 3 10 12
Other businesses (109) (315) (311)
Capital items (304) (162) (1 140)
Headline earnings per Rand 14,56 12,39 25,37
share
Note: The salient features for December 2006 have been restated to
incorporate the effect of the reclassification of Sasol O&S as a
continuing operation.
The reader is referred to the definitions contained in the 2007
Sasol Limited annual financial statements.
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
Directors (non-executive): PV Cox (Chairman), E le R Bradley*,
BP Connellan*, HG Dijkgraaf (Dutch)*, MSV Gantsho*, A Jain (Indian), IN Mkhize*,
S Montsi*, TH Nyasulu, JE Schrempp (German)*, TA Wixley*
(executive): LPA Davies (Chief executive), KC Ramon(Chief financial officer), VN
Fakude, AM Mokaba
*Independent
Company secretary: NL Joubert
Company registration number: 1979/003231/06, incorporated in the Republic of
South Africa
JSE NYSE
Share code: SOL SSL
ISIN code: ZAE000006896 US8038663006
American depositary receipts (ADR) program:
Cusip number 803866300
ADR to ordinary share 1:1
Depositary: The Bank of New York, 22nd floor, 101 Barclay Street,
New York, NY 10286, USA
Forward-looking statements: In this report we make certain statements that are
not historical facts and relate to analyses and other information based on
forecasts of future results not yet determinable, relating, amongst other
things, to exchange rate fluctuations, volume growth, increases in market share,
total shareholder return and cost reductions. These are forward-looking
statements as defined in the United States Private Securities Litigation Reform
Act of 1995. Words such as "believe", "anticipate", "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. Forward-looking statements involve
inherent risks and uncertainties and, if one or more of these risks materialise,
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 such forward-looking statements are discussed
more fully in our most recent annual report under the Securities Exchange Act of
1934 on Form 20-F filed on 21 November 2007 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 Sasol does 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.
Basis of preparation and accounting policies
The condensed consolidated interim financial results for the six months ended 31
December 2007 have been prepared in compliance with the Listings Requirements of
the JSE Limited, International Financial Reporting Standards (IFRS) as published
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 2007,
except as follows:
- Sasol Limited has revised the format of its interim financial
results in line with the amendments to IAS 34, Interim
Financial Reporting. IAS 34 has been amended as a result of IAS
1, Presentation of Financial Statements (as revised 2007).
Sasol Limited has early adopted these amendments.
- Sasol Limited has early adopted IFRIC 14 - IAS 19, The Limit on
a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction. The adoption did not have a significant impact.
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.
Significant changes in contingent liabilities since 30 June 2007
In January 2008, Yellow Rock was awarded damages in the amount of US$9,2
million, plus interest against Sasol North America LLC, who will be appealing
the decision. A liability for the damages amounting to R76 million (US$11
million) has been recognised at 31 December 2007.
Independent review by the auditors
The condensed consolidated interim statement of financial position at 31
December 2007 and the related condensed consolidated interim income statement,
statements of comprehensive income, changes in equity and cash flows for the six
months then ended have been reviewed by KPMG Inc. Their unmodified review report
is available for inspection at the registered office of the company.
10 March 2008
Johannesburg
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 10/03/2008 06:59:56 Produced by the JSE SENS Department.
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