| Wed 28 Jun 2006, 16:44 | | Sasol - Sasol hedges 45 000 barrels per day of its |
|
SOL
SOL
Sasol - Sasol hedges 45 000 barrels per day of its South African
synthetics fuels production
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
(ISIN: ZAE000006896)
Share codes:
JSE - SOL
NYSE - SSL
("Sasol")
Sasol hedges 45 000 barrels per day of its South African synthetics fuels
production
Sasol announces that it has, for its 2007 financial year which commences 1 July
2006, entered into hedging transactions (zero cost collars) for 45 000 barrels
of oil per day (equivalent to approximately 30% of its South African synfuels
production). In terms of this hedge Sasol will be protected should monthly
average dated Brent crude oil prices decrease below US$63,00 per barrel on the
hedged portion of production, and conversely Sasol will incur opportunity losses
on the hedged portion of production should monthly average oil prices exceed an
average US$83,60 per barrel.
This is in line with Sasol"s approach to consider oil price hedging on an annual
basis to improve the stability and predictability of its cash flows. The zero
cost collar structure is similar to the oil price hedging concluded for the 2006
financial year when a floor price of US$45 per barrel was achieved and upside
was limited to US$83 per barrel, also on 45 000 barrels of oil per day. During
the 2006 financial year oil prices did not fall below US$45 per barrel or
increase above US$83 per barrel and no cash flows, therefore, emanated from the
hedging.
Appropriate disclosure of this hedging will also be made in our 2006 annual
report and Form 20-F.
28 June 2006
Johannesburg
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Forward looking statements
We may in this document make statements that are not historical facts and relate
to analyses and other information based on forecasts of future results and
estimates of amounts not yet determinable. These are forward-looking statements
as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words
such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan",
"could", "may", "endeavour" and "project" and similar expressions are intended
to identify such forward-looking statements, but are not the exclusive means of
identifying such statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific, and there
are risks that predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may be very
different from those anticipated. The factors that could cause our actual
results to differ materially from the plans, objectives, expectations, estimates
and intentions expressed in such forward-looking statements are discussed more
fully in our annual report under the Securities Exchange Act of 1934 on Form 20-
F filed on October 26, 2005 and in other filings with the United States
Securities and Exchange Commission. Forward-looking statements apply only as of
the date on which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new information, future
events or otherwise.
Date: 28/06/2006 04:44:25 PM Produced by the JSE SENS Department
