| Mon 14 Sep 2009, 7:05 | | SOL - Sasol Limited - Financial Results For The Year Ended 30 June 2009 |
|
SOL
SOL
SOL - Sasol Limited - Financial Results For The Year Ended 30 June 2009
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
ISIN: ZAE000006896 US8038663006
Share codes: JSE - SOL NYSE - SSL
("Sasol" or "the group" or "the company")
FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2009
Delivering results in uncertain times
cash generated by operating activities of R48 billion
excluding once-off charges, operating profit maintained
headline earnings per share down 33% to R25,42
oil hedge cushions impact of sharp decline in oil prices
deleveraged balance sheet positions company well to fund growth
overall group production volumes up
Oryx and Arya Sasol plants performing successfully
growth projects remain on course
Overview
Chief Executive, Pat Davies says:
"Our deleveraged balance sheet and strong cash flows continue to serve the
group well in weathering the storm and in funding our prioritised growth
programme in tough credit markets. The global economic recession created
opportunities for us to examine all our operations. Our response has, for
instance, resulted in significant working capital improvements across our
businesses, positively impacting the group`s cash position. This, together
with our focus on efficiency and operational improvements is enhancing the
group`s competitiveness. Our growth strategy remains unchanged and, despite
the economic crisis, we have many opportunities which will provide for long-
term, sustainable growth. We have acted swiftly to improve competition law
compliance and will have completed our comprehensive group-wide review by
December 2009."
The global economic impacts and consequent weakening in the market for our
products affected our results. Earnings attributable to shareholders for the
year ended 30 June 2009 decreased by 39% to R13,6 billion from R22,4 billion
in the previous financial year, while earnings per share and headline earnings
per share decreased by 39% to R22,90 and by 33% to R25,42, respectively,
compared to the prior year.
Operating profit of R24,7 billion declined by 27% compared to the previous
financial year. Operating profit was negatively impacted by lower average
crude oil prices (average dated Brent was US$68,14/barrel in 2009 compared to
US$95,51/barrel in 2008) and chemical product prices, partially offset by a
24% weaker average rand/US dollar exchange rate (R9,04/US$ in 2009 compared to
R7,30/US$ in 2008). The average oil price achieved during the year was
cushioned by the effect of the oil hedges during the year which resulted in a
realised gain of R5 056 million. The decrease in operating profit was further
impacted by large once-off charges including competition related fines of R3
947 million, the Escravos gas-to-liquids (EGTL) provision of R1 280 million
and the Inzalo share-based payment expense of R3 202 million. Excluding the
impact of once-off charges, operating profit was maintained.
The increase in the effective tax rate is as a result of the competition
related fines and the share-based payment expenses which are not deductible
for tax purposes.
The increase in cash fixed costs, excluding the effects of once-off costs and
growth initiatives, at 16% is well above inflationary levels. This increase
resulted mainly due to the negative impact of a weaker exchange rate on our
costs and the abnormal increase in electricity costs at our South African
operations. Whilst we are able to generate nearly a third of our electricity
requirements, the South African state owned electricity provider, Eskom,
increased average annual electricity tariffs by 27,5% in June 2008.
Cash of R48,2 billion generated by operating activities represents a 39%
increase compared to the previous financial year. The increase is mainly due
to significant working capital improvements.
Chief Financial Officer, Christine Ramon says:
"Our strong cash position was enhanced by the cash conservation approach
instituted last October at the onset of the global economic crisis. We have
reprioritised capital expenditure for the next two years to about R15 billion
per annum. We continue to maintain a flexible approach to our capital
expenditure programme, ensuring that our pipeline of growth projects is not
affected, and our investment in growth continues unabated.
Signs of economic recovery are visible with improved market sentiment
reflected in the uptick in oil and product prices. However, we remain cautious
on the shorter term outlook for oil prices and product prices and continue to
plan prudently for an extended period of global economic recovery."
Sustained performance from our existing businesses
South African energy cluster
Sasol Mining - increased turnover despite lower sales volumes
Operating profit of R1 593 million was 14% higher than the previous year.
While turnover increased due to higher coal prices achieved in the first half
of the year, this was partially offset by lower sales volumes to Sasol
Synfuels and to the coal export market coupled with higher operating costs per
unit in light of lower production volumes.
Sasol Gas - stable sales volumes at higher gas prices
Operating profit increased by 36% to R2 424 million compared to the previous
year as a result of higher gas prices and stable sales volumes. Higher cash
fixed costs were experienced due to a focus on safety initiatives and
preparation for the commissioning of a new compressor station at Komatipoort.
Sasol Synfuels - increased operating profit despite lower production volumes
Sasol Synfuels` operating profits increased by 30% to R25 188 million, despite
4,1% lower production volumes compared to the previous year as a result of
instability in key plants. The increase in profits resulting from weaker
exchange rates was, however, partially offset by lower average oil prices and
significant feedstock price escalations. Included in the operating profit is a
gain of R4 904 million relating to the oil hedge.
Sasol Oil - declining product prices resulting in losses
Sasol Oil recorded an operating loss of R351 million compared to an operating
profit of R5 507 million for the prior year as a result of the steep decline
in product prices on the back of fast falling crude oil prices. This resulted
in negative stock effects and pressure on refining margins during the first
half of the year. Improved performance in the latter part of the year did not
fully offset the earlier losses.
International energy cluster
Sasol Synfuels International (SSI) - successful production ramp up of Oryx GTL
plant
SSI reflected an operating loss of R235 million compared to an operating loss
of R621 million in the previous year. This improvement was mainly due to the
successful ramp up in production of the Oryx gas-to-liquids (GTL) plant,
offset by higher study costs to assess the commercial viability of a number of
opportunities together with a loss of R771 million realised on the reduction
of our economic interest in the EGTL project. Following negotiations with
Chevron Nigeria Limited, Sasol reduced its economic interest from 37,5% to 10%
for which a consideration of R3486 million (US$360 million) was received. Due
to uncertainties that have recently arisen from the fiscal arrangements for
the project, management reassessed the impact on its commitments relating to
the project. This resulted in a provision of R1 280 million being recognised.
Sasol`s retained 10% economic interest in EGTL is now recognised as an
investment in an associate.
Production at the Oryx GTL plant in Qatar increased steadily and the average
daily production more than doubled since the previous year.
Sasol Petroleum International (SPI) - increasing upstream capacity
Operating profit increased by 11% to R1 115 million compared to the previous
year, mainly due to higher sales volumes and the weakening of the rand/US
dollar exchange rate. Gas production levels in Mozambique were maintained,
while oil and condensate production levels increased slightly compared to the
prior year. During the year, SPI extended its global footprint and made
entries into Papua New Guinea and Australia. With the commissioning of the
Pande gas field in Mozambique as well as the execution of a second gas sales
agreement, SPI achieved a 5 year average proved reserve replacement ratio of
167%.
Chemical cluster
Sasol Polymers - positive contribution from offshore operations
Operating profit decreased by 37% to R946 million compared to the previous
year, mainly due to the sharp decline in polymer sales prices in the latter
part of the year. The resulting margin squeeze was partially offset by
additional production volumes at Arya Sasol Polymers plants, which made a
positive contribution to our operating profit.
Sasol Solvents - lower sales volumes and margins
Operating profit decreased by 79% to R495 million compared to the previous
year due to reduced sales volumes following market-related cutbacks in
production. Sales prices and, to a lesser extent, margins were lower in the
second half, than in the first half of the year.
Sasol Olefins & Surfactants (Sasol O&S) - inventory revaluations leads to
operating loss
Sasol O&S reported an operating loss of R160 million compared to an operating
profit of R1 512 million for the previous year, mainly as a result of the
revaluation of inventory at lower international product prices. In addition,
the business experienced reduced sales volumes and margins due to the economic
downturn, especially in the global automotive and construction sectors. Sasol
O&S`s turnaround and restructuring is well on track and has already positioned
the business to better respond to the economic downturn.
Other chemical businesses - competition related penalties, reduced sales
volumes and inventory revaluations result in operating losses
Other chemical businesses recorded an operating loss of R3 525 million
compared to an operating profit of R1 200 million for the previous year due to
the European Commission fine on Sasol Wax GmbH of R3 678 million (EUR318,2
million) and the administrative penalty payable by Sasol Nitro to the South
African Competition Commission of R251 million. Additionally, an amount of
R242 million is provided for the closure of the Sasol Nitro Phalaborwa and
Polyfos operations. Excluding these once-off items, operating profit decreased
by 44% compared to the previous year resulting from reduced sales volumes and
inventory revaluations.
Competition law compliance
As announced previously, we initiated a comprehensive group-wide competition
law compliance review in July 2008, which is still ongoing. We will, in the
course of conducting these reviews, adopt appropriate remedial and/or
mitigating steps and make disclosures on material findings as and when
appropriate. The competition law compliance review has revealed and may still
reveal competition law contraventions or potential contraventions in respect
of which we have taken or will take appropriate remedial and/or mitigating
steps including lodging leniency applications. Additionally, we have reached a
settlement agreement with the Competition Commission in respect of previously
disclosed matters pertaining to Sasol Nitro.
The South African Competition Commission is conducting investigations into the
South African piped gas, petroleum, wax and polymer industries. We continue to
interact and co-operate with the Competition Commission in respect of the
subject matter of the leniency applications as well as in the areas that are
subject to Competition Commission investigations. The company is continuing to
evaluate and enhance its legal compliance controls mainly by way of the
competition law compliance review. To the extent appropriate, further
announcements will be made in future.
Sustaining Sasol into the future
Pursuing sustainable development opportunities remains a focus area for Sasol:
The recordable case rate for employees and service providers, including
injuries and illnesses, was 0,54 at 30 June 2009 compared to 0,50 at 30 June
2008.
We have updated our challenging targets to reduce our carbon dioxide (CO2)
emissions. Existing operations will emit 15% less CO2 per unit of production
by 2020 than they did in 2005. New coal-to-liquids (CTL) plants will emit 20%
less CO2 by 2020 and 30% less by 2030 than the average 2005 CTL design
baseline.
We regularly review the group`s long-term (i.e. towards 2050) absolute green
house gas (GHG) emission targets, as developments in the global climate change
arena take place. Such targets are also contingent on technological advances,
such as carbon capture and storage (CCS), increased utilisation of renewable
energy as well as developments in the regulatory and fiscal environments in
which we operate.
The first phase of the Sasol Mining black economic empowerment (BEE) strategy
received a setback when a notice of intention to withdraw from the Igoda
transaction was given by our partner, Exxaro Coal Mpumalanga. Sasol Mining is
actively pursuing alternatives to ensure that its BEE strategy remains intact.
Sasol Mining remains in compliance with the Mining Charter and will be
compliant with the Charter by 2014.
Growth projects achieving objectives
Our flexible approach to our capital expenditure programme allows us to
continuously reprioritise and ensure that our pipeline of growth projects is
advanced.
Our feasibility study into a CTL plant in China is progressing according to
schedule.
In April 2009, SSI signed a heads of agreement for the possible construction
of a 1,3 million tonnes per annum GTL plant in Uzbekistan with our partners,
Uzbekneftegaz and Petronas.
In India, the SSI and Tata joint venture for a CTL facility has progressed to
the pre-feasibility stage following the award of a coal block in the eastern
state of Orissa.
Gas production capacity in Mozambique has increased with SPI`s commissioning
of the onshore Pande gas field, and we are well on track to increase the
capacity of our upstream production facilities from 120 to 183 million giga
joules per annum.
In Gabon, SPI`s Ebouri offshore oil field was successfully commissioned.
Preparatory work for phase one of the Sasol Synfuels progressive expansion
project in South Africa, the Secunda Growth Programme, is progressing. Phase
one, based on natural gas, is expected to increase production by 3% by 2012
and will improve energy efficiency through internal electricity generation
capacity increasing by 33%.
In South Africa, Project Mafutha is scheduled to start bulk sample mining
before the end of the 2009 calendar year in order to commence large scale
gasification trials in one of Sasol Synfuels` gasifiers. The environmental
impact study is scheduled to start in the third quarter of the 2009 calendar
year.
Sasol Wax to continue with basic engineering and environmental approvals for
the project to double hard wax production at our Sasolburg facilities in South
Africa.
Cash conservation contributes to deleveraged balance sheet
The deleveraged balance sheet reflected an under-geared position of 1,2% at 30
June 2009 compared to a gearing level of 20,5% at 30 June 2008. This resulted
from our cash conservation drive, the suspension of the share repurchase
programme and capital prioritisation. A low level of gearing is expected to be
maintained in the short-term, but we expect that it will return to within our
targeted range of 20% to 40% in the medium to long term as a result of our
large capital intensive growth programme.
During the current year, the company repurchased a total of 3 216 769 Sasol
ordinary shares at an average price of R346,45 per share. Total shares
repurchased since the inception of the programme in March 2007 represents
about 6,4% of the issued share capital at 30 June 2009, excluding the shares
issued in terms of the Sasol Inzalo share transaction. During the period, 31
500 000 ordinary shares of the repurchased shares were cancelled for a total
value of R7,9 billion. Sasol Investment Company (Pty) Limited holds 8 809 886
Sasol ordinary shares. At the Annual General Meeting of 28 November 2008,
shareholders renewed the authority to buy back up to 4% of the issued share
capital for a further 15 months.
Profit outlook* - reduction in earnings for the full 2010 financial year
The decline in global chemical markets seen in the second half of the year is
expected to stabilise, although increasing feedstock costs are expected to
have a negative impact on our chemical businesses. While there has been some
recovery in the markets of late, the crude oil price and rand/US dollar
exchange rate remains volatile.
Taking into account the overall market conditions and our assumptions in
respect of crude oil and product prices which are expected to remain at levels
seen in the latter part of the 2009 financial year, as well as the current
levels of lower chemical product demand, an expected significantly stronger
rand/US dollar exchange rate and some improvement in overall production
volumes, the earnings for the 2010 financial year are expected to reflect a
reduction compared to the 2009 financial year. The current volatility and
uncertainty of global markets makes it difficult to be more precise in this
outlook statement.
The board considered it prudent to declare the final dividend in line with our
dividend policy and targeted earnings cover range of 2,5 times to 3,5 times
given the volatility and uncertainty in the current economic climate in the
interests of the company`s growth strategy and the preservation of long-term
shareholder value. Accordingly, the dividend for the full 2009 financial year
reflects the lower earnings achieved for the year. In future, we expect to
maintain our dividend policy within the targeted range of 2,5 times to 3,5
times annual earnings cover.
*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
In July 2008, Exel Petroleum (Pty) Limited acquired the remaining 50,1% of
Exelem Aviation (Pty) Limited for a purchase consideration of US$1,7 million.
With effect from 20 August 2008, Sasol Properties (Pty) Limited acquired
accommodation for staffing for the Sasol Synfuels growth initiative for a
purchase consideration of R17,3 million.
With effect from 23 December 2008, SSI reduced its interest in the Escravos
GTL Project in Nigeria for a consideration of US$360 million, retaining a 10%
interest.
On 24 December 2008, Sasol Group Services (Pty) Limited acquired a 40%
interest in Thin Film Solar Technologies (Pty) Limited in South Africa, for a
purchase consideration of R40 million.
Subsequent events
On 9 July 2009, Mr C Beggs was appointed as a non-executive director of Sasol
Limited as well as a member of the Audit Committee.
On 15 July 2009, Sasol signed a joint venture agreement with Uzbekneftegaz,
the natural oil and gas company of Uzbekistan, and Petronas of Malaysia, and
launched a feasibility study for the development and implementation of a GTL
project in Uzbekistan.
On 14 August 2009, in the Government Gazette No 32484, a change in ad valorem
duties affecting various products in our South African chemical businesses,
especially Sasol Polymers, was announced. If the full tariff reduction is
applied to the turnover of the relevant businesses it has a negative effect of
approximately R400 million on operating profit.
On 18 August 2009, Sasol Nitro announced the possible closure of its
Phalaborwa operations due to adverse market conditions.
Declaration of cash dividend number 60
A final cash dividend of South African R6,00 per ordinary share (2008: R9,35
per share) has been declared. The final 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 Friday, 9 October 2009
participate in the dividend (cum
dividend)
Trading ex dividend commences Monday, 12 October 2009
Record date Friday, 16 October 2009
Dividend payment date Monday, 19 October 2009
Holders of American Depositary Receipts:
Ex dividend on New York Stock Exchange Wednesday, 14 October 2009
(NYSE)
Record date Friday, 16 October 2009
Approximate date for currency conversion Tuesday, 20 October 2009
Approximate dividend payment date Friday, 30 October 2009
On Monday, 19 October 2009, 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, 19 October 2009.
Share certificates may not be dematerialised or re-materialised between
Monday, 12 October 2009 and Friday, 16 October 2009, both days inclusive.
On behalf of the board
Hixonia Nyasulu
Chairman
Pat Davies
Chief Executive
Christine Ramon
Chief Financial Officer
Sasol Limited
11 September 2009
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 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.
Please note: A billion is defined as one thousand million.
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, AM Mokaba *Independent
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
Sasol Limited is the world`s leader in the conversion of coal and gas to
transportation fuels and chemicals.
Segment report for the year ended 30 June
Turnover Operating profit
Rm Business unit analysis Rm
2008 2009 South African 2009 2008
104 790 103 358 energy cluster 28 684 28 048
7 479 8 297 Mining 1 593 1 393
4 697 5 666 Gas 2 424 1 785
39 616 37 701 Synfuels 25 188 19 416
52 998 51 694 Oil (351) 5 507
- - Other (170) (53)
3 764 5 166 International energy 880 383
cluster
1 793 3 027 Synfuels International (235) (621)
1 971 2 139 Petroleum International 1 115 1 004
73 696 81 913 Chemical cluster (2 244) 6 605
11 304 15 525 Polymers 946 1 511
17 182 18 115 Solvents 495 2 382
28 780 29 534 Olefins & Surfactants (160) 1 512
16 430 18 739 Other chemical (3 525) 1 200
businesses
4 273 5 209 Other businesses* (2 654) (1 220)
186 523 195 646 24 666 33 816
(56 580) (57 810) Intercompany turnover
129 943 137 836
*Includes share-based payment expenses related to the Sasol Inzalo share
transaction.
The preliminary financial statements are presented on a summarised
consolidated basis.
STATEMENT OF FINANCIAL POSITION
2009 2008
at 30 June Rm Rm
Assets
Property, plant and equipment 70 370 66 273
Assets under construction 14 496 11 693
Goodwill 805 874
Other intangible assets 1 068 964
Investments in associates 2 170 830
Post-retirement benefit assets 716 571
Deferred tax assets 1 184 1 453
Other long-term assets 2 045 2 631
Non-current assets 92 854 85 289
Assets held for sale 86 3 833
Inventories 14 589 20 088
Trade and other receivables 17 117 25 323
Short-term financial assets 520 330
Cash restricted for use 1 247 814
Cash 19 425 4 435
Current assets 52 984 54 823
Total assets 145 838 140 112
Equity and liabilities
Shareholders` equity 83 835 76 474
Non-controlling interest 2 382 2 521
Total equity 86 217 78 995
Long-term debt 13 615 15 682
Long-term financial liabilities 143 37
Long-term provisions 5 729 4 491
Post-retirement benefit obligations 4 454 4 578
Long-term deferred income 297 376
Deferred tax liabilities 9 168 8 446
Non-current liabilities 33 406 33 610
Liabilities in disposal groups held for sale 65 142
Short-term debt 4 762 3 496
Short-term financial liabilities 354 67
Other current liabilities 20 954 22 888
Bank overdraft 80 914
Current liabilities 26 215 27 507
Total equity and liabilities 145 838 140 112
STATEMENT OF CASH FLOWS
2009 2008
for the year ended 30 June Rm Rm
Cash receipts from customers 144 963 123 452
Cash paid to suppliers and employees (96 776) (88 712)
Cash generated by operating activities 48 187 34 740
Finance income received 2 264 957
Finance expenses paid (2 168) (2 405)
Tax paid (10 252) (9 572)
Dividends paid (7 193) (5 766)
Cash retained from operating activities 30 838 17 954
Additions to non-current assets (15 672) (10 855)
Acquisition of businesses (30) (431)
Cash obtained on acquisition of businesses 19 19
Disposal of businesses 3 486 693
Cash disposed of on disposal of businesses - (31)
Other net cash flows from investing activities (321) (239)
Cash utilised in investing activities (12 518) (10 844)
Share capital issued 1 154 387
Share repurchase programme (1 114) (7 300)
Contributions from non-controlling 406 185
shareholders
Dividends paid to non-controlling shareholders (583) (555)
Increase/(decrease) in long-term debt 755 (782)
Decrease in short-term debt (1 811) (350)
Cash effect of financing activities (1 193) (8 415)
Translation effects on cash and cash (870) 324
equivalents of foreign operations
Movement in cash and cash equivalents 16 257 (981)
Cash and cash equivalents at beginning of year 4 335 6 088
Net reclassification to held for sale - (772)
Cash and cash equivalents at end of year 20 592 4 335
INCOME STATEMENT
2009 2008
for the year ended 30 June Rm Rm
Turnover 137 836 129 943
Cost of sales and services rendered (88 508) (74 634)
Gross profit 49 328 55 309
Other operating income 1 021 635
Marketing and distribution expenditure (7 583) (6 931)
Administrative expenditure (9 050) (6 697)
Other operating expenditure (9 050) (8 500)
Competition related fines (3 947) -
Effect of crude oil hedges 4 603 (2 201)
Share-based payment expenses (3 325) (1 782)
Effect of remeasurement items (1 469) (698)
Translation (losses)/gains (166) 300
Other expenditure (4 746) (4 119)
Operating profit 24 666 33 816
Finance income 1 790 735
Share of profits of associates (net of tax) 270 254
Finance expenses (2 531) (1 148)
Profit before tax 24 195 33 657
Taxation (10 480) (10 129)
Profit for the year 13 715 23 528
Attributable to
Owners of Sasol Limited 13 648 22 417
Non-controlling interest in subsidiaries 67 1 111
13 715 23 528
Earnings per share Rand Rand
Basic earnings per share 22,90 37,30
Diluted earnings per share1 22,80 36,78
1 Diluted earnings per share are calculated taking the Sasol Share Incentive
Scheme and Sasol Inzalo share transaction into account.
STATEMENT OF COMPREHENSIVE INCOME
2009 2008
for the year ended 30 June Rm Rm
Profit for the year 13 715 23 528
Other comprehensive income
Effect of translation of foreign operations (2 485) 3 452
Effect of cash flow hedges (497) 261
Investments available-for-sale - (1)
Tax on other comprehensive income 101 (60)
Other comprehensive income for the year, net of tax (2 881) 3 652
Total comprehensive income for the year 10 834 27 180
Attributable to
Owners of Sasol Limited 10 796 26 062
Non-controlling interests in subsidiaries 38 1 118
10 834 27 180
STATEMENT OF CHANGES IN EQUITY
2009 2008
for the year ended 30 June Rm Rm
Opening balance 78 995 63 269
Shares issued during year 1 154 387
Repurchase of shares (1 114) (7 300)
Share-based payment expenses 3 293 1 574
Disposal of businesses 425 -
Acquisition of businesses - (100)
Change in shareholding of subsidiaries 406 306
Total comprehensive income for the year 10 834 27 180
Dividends paid (7 193) (5 766)
Dividends paid to non-controlling shareholders in (583) (555)
subsidiaries
Closing balance 86 217 78 995
Comprising
Share capital 27 025 20 176
Share repurchase programme (2 641) (10 969)
Sasol Inzalo share transaction (22 054) (16 161)
Retained earnings 74 882 77 660
Share-based payment reserve 5 833 2 540
Foreign currency translation reserve 939 3 006
Investment fair value reserve 2 1
Cash flow hedge accounting reserve (151) 221
Shareholders` equity 83 835 76 474
Non-controlling interest in subsidiaries 2 382 2 521
Total equity 86 217 78 995
SALIENT FEATURES
for the year ended 30 June 2009 2008
Selected ratios
Return on equity % 17,0 32,5
Return on total assets % 18,7 26,9
Operating margin % 17,9 26,0
Finance expense cover times 12,3 14,5
Dividend cover times 2,8 2,8
Share statistics
Total shares in issue million 665,9 676,7
Treasury shares (share million 8,8 37,1
repurchase programme)
Weighted average number of million 596,1 601,0
shares
Diluted weighted average number million 614,0 609,5
of shares
Share price (closing) Rand 269,98 461,00
Market capitalisation Rm 179 780 311 959
Net asset value per share Rand 141,14 128,44
Dividend per share Rand 8,50 13,00
- interim Rand 2,50 3,65
- final Rand 6,00 9,35
Other financial information
Total debt (including bank
overdraft)
- interest bearing Rm 17 814 19 455
- non-interest bearing Rm 643 637
Finance expense capitalised Rm 34 1 586
Capital commitments Rm 25 309 25 048
- authorised and contracted Rm 22 492 24 457
- authorised, not yet contracted Rm 17 038 17 722
- less expenditure to date Rm (14 221) (17 131)
Guarantees and contingent
liabilities
- total amount Rm 29 545 37 381
- liability included in the Rm 12 795 10 730
statement of financial position
Significant items in operating
profit
- employee costs Rm 17 532 14 443
- depreciation and amortisation Rm 6 245 5 212
of non-current assets
- operating lease charges Rm 1 111 887
- share-based payment expenses Rm 3 325 1 782
Directors` remuneration Rm 50 65
Share options granted to `000 946 1 011
directors - cumulative
Share appreciation rights `000 215 72
granted to directors -
cumulative
Sasol Inzalo share rights `000 75 75
granted to directors -
cumulative
Effective tax rate1 % 43,3 30,1
Number of employees number 33 544 33 928
Average crude oil price - dated US$/barrel 68,14 95,51
Brent
Average rand/US$ exchange rate 1US$ = Rand 9,04 7,30
Closing rand/US$ exchange rate 1US$ = Rand 7,73 7,83
1 Increase in effective tax rate
as a result of competition
related fines and share-based
payment expenses which are not
deductible for tax.
Reconciliation of headline Rm Rm
earnings
Profit for the year attributable 13 648 22 417
to owners of Sasol Limited
Effect of remeasurement items 1 469 698
Impairment of assets 458 821
Reversal of impairment - (381)
Loss/(profit) on disposal of 761 (440)
assets
Loss on repurchase of - 34
participation rights in GTL
venture
Loss on realisation of foreign - 557
currency translation reserve
Scrapping of non-current assets 234 107
Write off of unsuccessful 16 -
exploration wells
Tax effects and non-controlling 35 (225)
interests
Headline earnings 15 152 22 890
Remeasurement items per above
Mining 3 7
Gas 4 104
Synfuels 137 25
Oil (3) (20)
Synfuels International 777 396
Petroleum International 18 (27)
Polymers (1) (12)
Solvents 158 104
Olefins & Surfactants 106 (27)
Other chemical businesses 246 229
Nitro 219 (199)
Wax 27 426
Other - 2
Other businesses 24 (81)
Remeasurement items 1 469 698
Headline earnings per share Rand 25,42 38,09
Diluted headline earnings per Rand 25,25 37,56
share
The reader is referred to the definitions contained in the 2008 Sasol Limited
annual financial statements.
Basis of preparation and accounting policies
The preliminary summarised consolidated financial results for the year ended
30 June 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 preliminary
summarised consolidated financial results are consistent with those applied
for the year ended 30 June 2008, 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 27 (Amendment), Consolidated and Separate Financial Statements.
- IFRS 1 and IAS 27 (Amendment), Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate.
- IFRS 3 (Revised), Business Combinations.
- IAS 39 (Amendment), Eligible Hedged Items.
- IAS 39 and IFRS 7 (Amendments), Reclassifications of Financial Assets -
Effective Date and Transition (effective 1 July 2008).
- IFRS 5 (Amendment), Non-current Assets Held for Sale and Discontinued
Operations.
- IFRS 7 (Amendment), Financial Instruments: Disclosures - Improving
disclosures about Financial Instruments.
- IFRIC 16, Hedges of a Net Investment in a Foreign Operation.
- IFRIC 18, Transfers of Assets From Customers.
-Various improvements to IFRSs.
These preliminary summarised consolidated 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 preliminary summarised consolidated 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 2008
On 1 October 2008, the European Union found that members of the European wax
industry, including Sasol Wax GmbH, had formed a cartel and violated antitrust
laws. A fine of R3 678 million (EUR318,2 million) was imposed by the European
Commission on Sasol Wax, who has appealed the quantum of the fine. The fine
was paid in January 2009.
Flowing from the group-wide competition law compliance review, an
administrative penalty of R251 million was imposed on Sasol Nitro in terms of
the settlement agreement concluded between Sasol Nitro and the Competition
Commission of South Africa in respect of certain aspects of the Nutri-Flo
matter and the sale of the phosphoric acid production asset matters. The
penalty has been provided for at 30 June 2009.
Independent audit by the auditors
The preliminary summarised consolidated statement of financial position at 30
June 2009 and the related preliminary summarised consolidated income
statement, statements of comprehensive income, changes in equity and cash
flows for the year then ended was audited by KPMG Inc. The individual auditor
assigned to perform the audit is Mr AW van der Lith. Their unqualified audit
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
14 September 2009
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 14/09/2009 07:05:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
