| Mon 8 Sep 2003, 8:56 | | Audited Consolidated Profit Statement And Declarat |
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Sasol Limited - Audited Consolidated Profit Statement And Declaration Of
Release Date: 08/09/2003 07:01:11 Code(s): SOL
Sasol Limited - Audited consolidated profit statement and declaration of
dividend number 48 for the year ended 30 June 2003
Sasol Limited
(Incorporated in the Republic of South Africa)
Share codes: JSE - SOL (Isin: ZAE000006896)
NYSE - SSL
Reaching new frontiers
Audited consolidated profit statement and declaration of dividend number 48 for
the year ended 30 June 2003
Clear direction in stormy seas
Sasol is an integrated oil and gas company with substantial chemical interests.
Sasol is listed on the JSE Securities Exchange South Africa and on the New York
Stock Exchange.
Strong rand results in adverse currency effects - R4,2 billion
Excluding currency effects operating profit up by 9%
Including currency effects operating profit and attributable earnings down by
19% and 20%
Severe margin pressures in chemical businesses
Total dividend held at 450 cents
Five year growth targets met and major capital projects on track
A billion is defined as one thousand million.
The consolidated financial statements of Sasol Limited are presented on a
summarised basis.
Balance sheet
at 30 June
2002 2003 2003 2002
Restated Restated
US$m US$m Rm Rm
ASSETS
3 744 5 652 Property, plant and equipment 42 363 38 453
(50) (42) Goodwill and negative goodwill (314) (518)
181 274 Intangible assets 2 051 1 854
48 60 Retirement benefit assets 451 497
186 263 Other long-term assets 1 971 1 915
4 109 6 207 Non-current assets 46 522 42 201
878 1 167 Inventories 8 748 9 013
1 024 1 486 Trade and other receivables 11 140 10 515
22 2 Short-term financial assets 12 232
367 514 Cash 3 851 3 769
2 291 3 169 Current assets 23 751 23 529
6 400 9 376 TOTAL ASSETS 70 273 65 730
EQUITY AND LIABILITIES
3 050 4 472 Total shareholders" equity 33 518 31 315
26 40 Minority interest 300 272
528 611 Long-term debt 4 581 5 427
282 332 Long-term provisions 2 486 2 892
271 345 Retirement benefit obligations 2 589 2 778
6 13 Long-term deferred income 96 65
590 816 Deferred tax 6 113 6 062
1 677 2 117 Non-current liabilities 15 865 17 224
338 865 Short-term debt 6 481 3 474
1 136 1 446 Other current liabilities 10 841 11 671
173 436 Bank overdraft 3 268 1 774
1 647 2 747 Current liabilities 20 590 16 919
6 400 9 376 TOTAL EQUITY AND LIABILITIES 70 273 65 730
Income statement
for the year ended 30 June
2002 2003 2003 2002
Restated Restated
US$m US$m Rm Rm
5 882 7 148 Turnover 64 555 59 590
Cost of sales and services
(3 436) (4 356) rendered (39 347) (34 812)
2 446 2 792 Gross profit 25 208 24 778
122 67 Non-trading income 604 1 241
Marketing and distribution
(422) (551) expenditure (4 977) (4 273)
(407) (488) Administrative expenditure (4 407) (4 125)
( 335) ( 312) Other operating expenditure (2 809) (3 394)
Operating profit before
1 404 1 508 translation (losses)/gains 13 619 14 227
55 (189) Translation (losses)/gains (1 708) 556
1 459 1 319 Operating profit 11 911 14 783
Dividends and interest
23 18 received 167 230
3 7 Income from associates 60 31
(28) (25) Borrowing costs (225) (284)
1 457 1 319 Net income before tax 11 913 14 760
(484) (444) Taxation (4 007) (4 905)
973 875 Net income after tax 7 906 9 855
(4) (10) Minority interest (89) (38)
969 865 Attributable earnings 7 817 9 817
Basic earnings per share (cents)
158 142 - attributable earnings basis 1 283 1 603
158 142 - headline earnings basis 1 280 1 597
Diluted earnings per share (cents)*
155 140 - attributable earnings basis 1 262 1 571
154 139 - headline earnings basis 1 259 1 565
Dividends per share (cents)
20 27 - interim 215 200
24 31 - final** 235 250
44 58 450 450
*Taking the Sasol Share Incentive
Scheme into account.
**Subject to exchange rate
ruling on payment date.
The US dollar convenience
translation is calculated on a line-by-line
basis in
accordance with IFRS.
Cash flow statement
for the year ended 30 June
2003 2002
Restated
Rm Rm
Cash receipts from customers 64 696 60 049
Cash paid to suppliers and employees (48 699) (40 592)
Cash generated by operating activities 15 997 19 457
Investment income 178 247
Borrowing costs paid (1 286) (863)
Dividends paid (2 835) (2 325)
Tax paid (5 527) (4 749)
Cash available from operating activities 6 527 11 767
Additions to property, plant and equipment (10 272) (7 945)
Acquisition of businesses (155) (565)
Sasol Chemie purchase price reduction - 341
Cash acquired on acquisition of businesses 119 35
Other net expenditure in investing activities (413) (295)
Cash utilised in investing activities (10 721) (8 429)
Share capital issued 77 76
Share buyback programme (185) (1 020)
Dividends paid to minority shareholders (65) (76)
Increase/(decrease) in long-term debt 122 (2 457)
Increase/(decrease) in short-term debt 3 088 (962)
Cash effect of financing activities 3 037 (4 439)
Decrease in cash and cash equivalents (1 157) (1 101)
Cash and cash equivalents
- opening balance 1 995 2 370
- arising on translation (255) 726
Cash and cash equivalents at end of year 583 1 995
Comprising- cash 3 851 3 769
- bank overdraft (3 268) (1 774)
583 1 995
Changes in equity statement
for the year ended 30 June
2003 2002
Restated
Rm Rm
Opening balance 22 217
Effect of change in accounting policy 920
Restated opening balance 31 315 23 137
Shares issued 77 76
Shares purchased (185) (1 020)
Attributable earnings for the year 7 817 9 817
Dividends paid (2 835) (2 325)
(Decrease)/increase in foreign currency
translation reserve (2 570) 1 869
Increase in non-trading financial
assets reserve - 2
Decrease in cash flow hedge accounting
reserve ( 101) ( 241)
Closing balance 33 518 31 315
Comprising
Share capital 2 783 2 706
Share buyback programme (3 614) (3 429)
Accumulated earnings 35 041 30 059
Foreign currency translation reserve (352) 2 218
Non-trading financial assets reserve 2 2
Cash flow hedge accounting reserve (342) (241)
Total shareholders" equity 33 518 31 315
Value added statement
for the year ended 30 June
2003 2002
Restated
Rm Rm
Turnover 64 555 59 590
Purchased materials and services (39 066) (32 820)
Value added 25 489 26 770
Investment income 227 261
Wealth created 25 716 27 031
Employees 9 055 7 921
Providers of equity capital 2 924 2 363
Providers of loan capital 225 284
Government 3 651 4 669
Reinvested in the group 9 861 11 794
Wealth distribution 25 716 27 031
Salient features
2003 2002
Restated
Selected ratios
Return on equity % 24,1 36,1
Return on total assets % 17,8 25,7
Operating margin % 18,5 24,8
Borrowing cost cover times 9,4 17,4
Dividend cover times 2,9 3,5
Share statistics
Total shares in issue million 668,8 666,9
Treasury shares
(share buyback programme) million 59,7 57,9
Weighted average number of shares million 609,3 612,5
Fully diluted number of shares million 619,6 625,0
Share price (closing) cents 8 355 11 000
Market capitalisation Rm 55 878 73 359
Net asset value per share cents 5 503 5 142
Other financial information
Total debt (including bank overdraft)
- interest bearing Rm 14 289 10 579
- non-interest bearing Rm 41 96
Capital commitments
- authorised and contracted Rm 9 562 7 430
- authorised, not yet contracted Rm 8 510 16 632
Guarantees and contingent
liabilities Rm 18 358 10 114
Significant items in operating profit
- employee costs Rm 9 055 7 921
- depreciation of property, plant
and equipment Rm 4 468 4 221
- operating lease charges Rm 378 369
Directors" remuneration Rm 29 23
Share options granted to directors -
cumulative "000 1 450 1 508
Effective tax rate % 33,6 33,2
Number of employees number 31 150 31 100
Average crude oil price -
Dated Brent US$/bbl 27,83 23,24
Reconciliation of headline earnings
Attributable earnings 7 817 9 817
Impairment of assets 83 145
Loss on disposal of assets 90 46
Scrapping of property, plant
and equipment 69 52
Amortisation of goodwill 42 33
Amortisation of negative goodwill (301) (282)
Tax effect of reconciling items (2) (30)
Headline earnings 7 798 9 781
The reader is referred to the definitions contained in the 2002 annual report.
Financial overview
For the 2003 financial year, operating profit before currency translation
effects decreased by 4% from R14 227 million to R13 619 million compared to the
last financial year. After currency translation effects, operating profit
decreased by 19% from R14 783 million to R11 911 million. Attributable earnings
and earnings per share decreased by 20% from R9 817 million to R7 817 million
and from 1 603 cents to 1 283 cents respectively. During the year the group
changed its accounting policy with respect to borrowing costs. Excluding the
effect of this change, attributable earnings and earnings per share on a
comparable basis decreased by 24% from R9 496 million to R7 174 million and from
1 550 cents to 1 177 cents respectively.
International oil prices were on average 14% higher than in the previous
financial year. The following, however, more than offset this benefit and were
the main causes of the decrease in basic attributable earnings:
the strengthening of the rand-US$ exchange rate from an average of R10,13:US$ 1
in the previous reporting period to R9,03:US$ 1 (R1,9 billion), and from a
closing rate at 30 June 2002 of R10,27:US$ 1 to R7,50:US$1 (R2,3 billion) at 30
June 2003. The total adverse impact on operating profit of these currency
effects amounted to R4,2 billion, the depressed margins of various chemicals and
in particular alkylates, and the losses arising from the extended Natref
shutdown and unforeseen problems and delays experienced with the refinery
expansion project.
Other than Sasol Olefins & Surfactants and Sasol Oil, the group performed
reasonably well in difficult global trading conditions that were exacerbated by
the effects of the Middle East war and the SARS virus in Asia.
Sasol"s plants world-wide ran well and customers" requirements were met.
Pleasing improvements were made in safety, environmental and risk management.
Capital expenditure incurred amounted to R11 billion. Major projects advanced or
completed during the year include:
- the pioneering gas-to-liquid (GTL) fuels projects in Qatar and Nigeria,
- the Mozambique gas project which will bring natural gas for the first time to
- the industrial heartland of South Africa, and
- the n-butanol and acrylic acid and acrylates projects at Sasolburg.
At 30 June 2003, gearing (total debt less cash as a percentage of shareholders"
equity) amounted to 33% which was within the company"s targeted range of 20% to
40%. In response to the group"s capital expansion programme and debt-funding
requirements, the group"s gearing target-range was increased to 30% - 50% during
the year. This decision followed substantial research and stress-testing of
Sasol"s balance sheet and business plans.
The total dividend declared of R4,50 is equivalent to that of the previous
reporting period and reflects a dividend cover of 2,9.
Notable achievements during the year included Sasol"s improved credit rating by
international agency Standard and Poor"s, and the successful secondary listing
of Sasol on the New York Stock Exchange.
Sasol mining
Lower international coal prices and the stronger rand adversely impacted on
Sasol Mining"s export revenues resulting in operating profit decreasing by 4%
from R1 335 million to R1 277 million.
Various productivity improvements were again achieved as a continuation of Sasol
Mining"s business renewal initiatives. Machine and per-capita productivity
improved by 9% and 3% respectively and increases in cash costs per ton were
contained to 4%, which is within the South African Producer Price Index (PPI)
rate of inflation.
Sasol Mining was recognised for its successes and business stature when it
received the International Coal Company of the Year Award at the 2002
Platts/Business Week Global Energy Awards in New York.
Sasol synfuels
Sasol Synfuels advanced its business renewal initiatives launched in the mid-
1990s and maintained turnover at the record levels achieved in the 2002
financial year. The benefit of higher international crude oil prices was mostly
offset by the impact of a stronger rand resulting in operating profit increasing
slightly to R8 048 million.
An initiative was advanced in partnership with Sasol Technology and Sasol Oil to
ensure compliance with the new fuel specifications that are expected to become
mandatory in South Africa in 2006. It is estimated that about R7 billion will be
invested to modify the liquid fuel refining and blending operations and to
construct new plants to increase the octane rating of Secunda"s synthetic
petrol.
This project will liberate significant further quantities of monomer feedstock
which will enable Sasol Polymers to progress with value-adding polymer expansion
projects.
Sasol oil and gas
Operating profit reduced by 39% from R2 021 million to R1 223 million. The
benefit of higher oil and fuel prices as well as higher gas sales was more than
offset by the impact of a stronger rand and losses arising from the Natref
shutdown (R200 million) and difficulties experienced with the Natref expansion
project (R200 million). The plant has since operated satisfactorily and record
production levels have been achieved.
The introduction of the new Basic Fuel Price (BFP) mechanism in April 2003 to
replace the in-bond landed cost (IBLC) pricing formula had minimal effect on
profits.
Negotiations have progressed with other oil companies to conclude new supply
agreements to replace the Main Supply Agreement which expires on 31 December
2003.
Preparation for the introduction of natural gas from Mozambique into South
African markets is progressing well.
Sasol"s chemical businesses
Sasol olefins and surfactants (O&S)
The depressed global economy and significant margin pressures caused by lower
product prices and higher feedstock costs resulted in operating profit reducing
by 95% from euro 133 million to euro 7 million. In rand terms, operating profit
reduced from R1 207 million to R67 million.
The performance of the alkylates business was particularly disappointing. Linear
alkylbenzene (LAB) selling prices came under pressure because of surplus global
capacity. Kerosene and benzene feedstock costs increased to an all-time high.
Low capacity utilisation at Sasol"s LAB plants led to the suspension of
production at the Porto Torres LAB facility in Italy and a 30% reduction of the
workforce of the LAB plant at Baltimore in the USA.
While the monomers business within Sasol O & S also had disappointing results
primarily because of low co-monomer prices, all other businesses in Sasol O & S
achieved satisfactory performances in Euro, but in rand terms were adversely
affected by the stronger rand.
Various businesses in the chemical portfolio are being scrutinised and reviewed
to ensure strategic fit and the ability to meet financial performance targets on
a sustainable basis. Certain businesses and product groups are being considered
for rationalisation, potential disposal and/or an intensified process of cost
reduction and productivity improvement.
Sasol polymers
Turnover increased by 12% from R5 580 million to R6 245 million. Higher
feedstock costs and rand appreciation resulted in operating profit decreasing by
3% from R913 million to R890 million. A focus on continuous improvement was
maintained and the business increased per capita production by 9%.
Plant operations remained stable with some units achieving production records.
The polyethylene plant in Malaysia overcame start-up problems experienced during
the first half of the financial year and by year-end was running at full
capacity.
Sasol Polymers Germany entered into a joint venture with the National
Petrochemical Company of Iran to construct and operate an integrated world-scale
ethylene and polyethylene complex in Iran.
Sasol solvents
The benefits of cost-cutting initiatives and record turnover resulted in Sasol
Solvents increasing its operating profit before translation effects by 3% from
R704 million to R728 million. The rand"s appreciation, however, resulted in a
45% decrease in operating profit after translation effects from R786 million to
R436 million.
Most business units performed to expectations and contributed satisfactorily to
profits. Closer collaboration with Sasol O&S world-wide is yielding even more
operational synergies which, together with the establishment of various shared
services, will contribute to further reduce costs.
Sasol wax
Sasol Wax achieved satisfactory results during the year despite aggressive
competition and margin pressures caused by higher oil prices. Operating profit
increased by 33% from R175 million to R233 million. Demand for Fischer-Tropsch
waxes produced at Sasolburg was buoyant while competition from Chinese wax
producers resulted in margins for commodity waxes eroding in European markets.
Sasol nitro
In a year characterised by higher demand for fertilisers and lower demand for
explosives, Sasol Nitro performed reasonably well. Rand appreciation and
increased logistics costs partly offset the benefit of higher fertiliser prices
resulting in operating profit decreasing by 23% to R414 million. Cash cost
increases were contained to well within the PPI rate of inflation.
During the year a decision was taken to divest from Sasol Nitro"s
underperforming explosives businesses in the USA and Canada resulting in a
further impairment cost of R158 million.
Sasol petroleum international
The development of the Mozambique gas fields at Temane and Pande progressed
satisfactorily during the year. It is currently estimated that Sasol has access
to Mozambican gas reserves of about 3,2 trillion cubic feet (tcf), or more than
500 million barrels of oil equivalent.
Sasol synfuels international
Sasol"s ambition to pioneer new-generation GTL conversion technology in selected
gas-rich regions advanced during the year. Through the joint venture with Qatar
Petroleum work commenced on the construction of the plant at Ras Laffan, Qatar.
In November 2002, non-recourse financing amounting to US$ 700 million was
successfully arranged for the project. The engineering, procurement and
construction (EPC) contract was awarded in December 2002. The plant is expected
to be ready for commissioning before the end of December 2005.
The Sasol Chevron joint venture (between Sasol and ChevronTexaco) made progress
with the full-scale design of the GTL plant to be built in Nigeria. It is
envisaged that the EPC contract will be awarded during 2004 and commissioning of
the plant is expected during 2007.
Profit outlook
International chemical prices are predicted to drift upwards or remain unchanged
and margins should improve because average oil prices in the 2004 financial year
are expected to be lower than in the past year. A dominating influence on
overall financial performance is, however, expected from the rand"s
relationships with major currencies. If the prevailing strength of the rand
persists, it is unlikely that rand earnings in the new financial year will match
those of the 2003 financial year.
Looking ahead, the group is poised to enter its next growth phase which will be
spearheaded by the rollout of the GTL ventures over the next few years. This
will be supported by both the harvesting of returns from our chemical
investments and continuing major contributions from our mining, oil and gas and
synthetic fuels businesses.
Corporate governance
Following its listing on the New York Stock Exchange (NYSE) on 9 April 2003 and
the publication of new listings requirements by the JSE Securities Exchange
South Africa (JSE) effective from 1 September 2003, the group had the
opportunity to review its corporate governance practices comprehensively. Sasol
complies, to the extent required, with the new JSE Listings Requirements, as
well as the comprehensive US governance standards recently augmented by rules
adopted by the NYSE and the US Securities Exchange Commission in consequence of
the Sarbanes-Oxley Act. The group subscribes to, affirms its commitment to and
complies, in all material respects with the principles of the Code on Corporate
Practices and Conduct as contained in the second King Report on Corporate
Governance for South Africa. All the key principles underlying responsible and
effective corporate governance practices and conduct are reflected in Sasol"s
corporate governance structures and practices.
Declaration of final dividend number 48
The directors of Sasol Limited have declared a final dividend of 235 cents per
share (2002: 250 cents per share) for the year to 30 June 2003. The dividend has
been declared in the currency of the Republic of South Africa.
Trading in the STRATE environment requires settlement within five business days.
In accordance with the settlement procedures of STRATE, the following dates will
apply to the final dividend:
Last day for trading to qualify
for and participate in the final
dividend (cum dividend) Friday, 3 October 2003
Trading ex dividend commences Monday, 6 October 2003
Record date Friday, 10 October 2003
Dividend payment date (electronic and certificated register)
Monday, 13 October 2003
Dividend cheques in payment of this dividend to certificated shareholders will
be posted to shareholders on or about Monday, 13 October 2003. Electronic
payment to certificated shareholders will be undertaken simultaneously.
Shareholders who have dematerialised their share certificates will have their
accounts at their Central Securities Depository Participant or Broker credited
on Monday, 13 October 2003.
In the case of certificated shareholders, notice of any change of address of
shareholders must reach the transfer secretaries, Computershare Limited, on or
before Friday, 3 October 2003. Share certificates may not be dematerialised or
rematerialised between Monday, 6 October 2003 and Friday, 10 October 2003, both
days inclusive.
On behalf of the board
P du PKruger
Chairman
P VCox
Deputy chairman and chief executive
Sasol Limited
5 September 2003
Report of the independent auditors
To the members of Sasol Limited
The summarised consolidated financial statements of Sasol Limited have been
derived from the audited consolidated financial statements, prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice, International Financial Reporting Standards and in the manner required
by the Companies Act in South Africa, of the company for the year ended 30 June
2003. We have audited the consolidated financial statements in accordance with
statements of South African Auditing Standards. In our report dated 5September
2003, we expressed an unqualified opinion on the consolidated financial
statements from which the summarised consolidated financial statements were
derived.
audit opinion
In our opinion, the accompanying summarised consolidated financial statements
are consistent, in all material respects, with the audited consolidated
financial statements from which they were derived and are prepared in accordance
with the presentation and disclosure requirements of South African Statements of
Generally Accepted Accounting Practice, International Financial Reporting
Standards and the requirements of the Companies Act in South Africa.
For a better understanding of the scope of our audit and the company"s
consolidated financial position, results of operations and cash flows, the
summarised consolidated annual financial statements should be read in
conjunction with our audit report included in the consolidated financial
statements from which the summarised consolidated financial statements were
derived.
KPMG Inc
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg
5 September 2003
2002 2003 2003 2002
Restated Restated
Turnover Operating profit Rm
Business unit Rm
1 239 1 013 Sasol Mining 1 277 1 335
12 620 13 643 Sasol Synfuels 8 048 8 030
6 414 8 507 Sasol Oil and Gas 1 223 2 021
39 023 41 030 Sasol"s chemicals businesses 2 240 3 681
19 129 19 543 Sasol Olefins and Surfactants 67 1 207
5 580 6 245 Sasol Polymers 890 913
5 666 5 950 Sasol Solvents 436 786
3 840 4 663 Sasol Wax 233 175
3 984 3 810 Sasol Nitro 414 535
824 819 Other chemicals 200 65
294 362 Other (635) (41)
59 590 64 555 12 153 15 026
Capital items (242) (243)
59 590 64 555 11 911 14 783
Turnover Geographic analysis Operating profit
26 735 31 136 South Africa 10 896 12 115
2 079 1 959 Rest of Africa 15 12
16 390 17 149 Europe 781 1 491
Middle East, India and
3 208 3 710 Far East 453 510
9 514 8 809 North America (229) 528
675 697 South America 7 63
989 1 095 Southeast Asia (12) 64
11 911 14 783
Notes to the financial statements
Basis of preparation and accounting policies
The summarised consolidated financial statements have been prepared in
compliance with the Listings Requirements of the JSE Securities Exchange South
Africa, in accordance with International Financial Reporting Standards (IFRS)
and the requirements of the South African Companies Act, 1973, as amended.
The accounting policies applied in the presentation of the group"s summarised
consolidated financial statements for the year ended 30 June 2003 are consistent
with those applied in the previous year except for the change in accounting
policy to capitalise borrowing costs.
These summarised consolidated financial statements have been prepared in
accordance with the historic cost convention except for certain financial
instruments which are stated at fair value.
The principal reporting currency of the Sasol group is rand. This currency
reflects the economic substance of the underlying events and circumstances of
the group. US$ figures are presented for the balance sheet and income statement
for convenience purposes only. Other US$ figures are not presented as they are
not considered to be meaningful
Change in accounting policy
During the year, the group changed its accounting policy to the allowed
alternative treatment of the IFRS standard on Borrowing Costs - IAS23. This
treatment requires the capitalisation of borrowing costs to certain qualifying
assets during construction. The group"s external debt has increased materially
over the past three financial years and is used primarily to finance the group"s
capital expansion programme. It was thus considered appropriate to capitalise
borrowing costs to certain qualifying assets rather than to expense it as
incurred.
Comparative figures have been restated as if they had always been prepared in
accordance with this policy.
The effect of the change in accounting policy is as follows:
2003 2002
Rm Rm
Increase in depreciation expense (142) (112)
Reduction in borrowing costs 1 061 579
Tax effect (276) (136)
Minority interest - (10)
Net increase in attributable earnings 643 321
Increase in opening accumulated earnings 1 241 920
Related party transactions
During the year, the group, in the ordinary course of business, entered into
various sale and purchase transactions with related parties. The group enters
into these transactions on an arm"s length basis at market rates.
Post-balance sheet events
Sasol successfully issued a R 2 000 million corporate bond on 1 September 2003.
The maturity date of the bond is 1 September 2007. Interest is charged at 10,5%
per annum payable 1 March and 1 September each year.
On 11 July 2003 Sasol Italy S.p.A. acquired the remaining 48,05% shares in G.D.
Portbury Limited (Dubai) trading as Sasol Gulf for a cash consideration of US$
2,65 million (R20 million).
Anglo Operations Limited and Sasol Mining (Pty) Limited entered into an
agreement to develop the Kriel South coal reserves in Mpumalanga province, South
Africa. Anglo Operations Limited will invest R769 million (US$ 96 million) and
Sasol R320 million (US$ 40 million) in the project.
This Petroleum Products Amendment Bill aims to create a legislative framework
for the governance of the fuel industry. In issuing wholesale licenses,
wholesalers will be required to procure products made from coal, natural gas or
vegetable matter before buying or selling products made from other raw
materials.
The South African government has amended the Petroleum Pipelines Bill such as to
guarantee Natref"s supply of crude oil at its current capacity. This bill is of
an enabling nature and provides for a pipeline authority that will be empowered
to set tariffs for petroleum pipelines. The Bill does not specifically provide
for a continued differentiation between the pipeline tariff for the transport of
crude-oil and that of refined products. A reduction in this differential would
have an adverse effect on the refining margins of the Natref refinery. Until
such time as a decision on tariffs has been taken, the impact on Sasol"s share
in Natref cannot be ascertained.
Principle foreign currency conversion rates
One unit of foreign currency equals 2003 2002
Rand/US$ (closing) 7,50 10,27
Rand/US$ (average) 9,03 10,13
Rand/euro (closing) 8,63 10,19
Rand/euro (average) 9,41 9,08
Annual report: the annual report will be posted to shareholders and will be
available on Sasol"s website on or about 6 October 2003.
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
and estimates of amounts not yet determinable, relating, amother other things,
to volume growth, increases in market share, total shareholder return and cost
reductions. 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", "endeavor" 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 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 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 March
6, 2003 and in other filings with the United States Securities and Exchange
Commission.
Registered office
Sasol Limited, 1 Sturdee Avenue, rosebank, Johannesburg 2196
P O Box 5486, Johannesburg 2000
Transfer Secretaries
Computershare Limited, 70 Marshall Street, Johannesburg 2001
P O Box 1053, Johannesburg 2000, South Africa
Tel: +27 11 370-5000 fax: +27 11 370 5271/2
Directors
Non-executive
P du P Kruger (Chairman), E le R Bradley, W A M Clewlow, B P Connellan, M S
V Gantsho, A Jain (Indian), S Montsi, S B Pfeiffer (USA), J E Schrempp
(German), C B Strauss
Executive
P V Cox (Deputy chairman and chief executive), L P A Davies (Executive
Director), J H Fourie (Executive director), T S Munday (Executive director)
Company secretary N L Joubert
Company registration number 1979/003231/06 Incorporated in the Republic of South
Africa
Isin code: ZAE000006896
share code SOL
American depository receipt (ADR) program cusip number 543210 ADR to ordinary
share 1:1
Depositary The Bank of New York, 22nd floor, 101 Barclay Street, New York, N.Y.
10286, U.S.A.
Information agent Taylor Rafferty.
Date: 08/09/2003 07:01:28 AM Produced by the JSE SENS Department
