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SOL - Sasol Limited - Interim Financial Report And Declaration Of Dividend
Number 55 For The Six Months Ended 31 December 2006
Sasol Limited
(Incorporated in South Africa)
(Registration number: 1979/003231/06)
ISIN Code: ZAE000006896
JSE Code: SOL
NYSE Code: SSL
("Sasol" or "the Company")
INTERIM FINANCIAL REPORT AND DECLARATION OF DIVIDEND NUMBER 55 FOR THE SIX
MONTHS ENDED 31 DECEMBER 2006
- operating profit up 12%
- attributable earnings per share from continuing operations up 13%
- oryx gtl producing final product
- major capital projects advanced R6,1 billion
- gearing reduced from 29% to 21%
- interim dividend up 11% to R3,10 per share
Commentary
Earnings attributable to shareholders for the six months to 31 December 2006,
buoyed by an increase in the average crude oil price and the weaker rand/US
dollar exchange rate, increased by 9% to R8,0 billion from R7,3 billion for
the same period in the previous financial year. Earnings attributable to
shareholders from continuing operations have increased by 14% to R8,1
billion, from R7,1 billion.
Our earnings per share from continuing operations of R12,95 and headline
earnings per share from continuing operations of R12,03 were respectively 13%
and 7% higher than those of the previous comparable six month period.
Operating profit of R12,2 billion was 12% higher than the comparable period
of the prior year. The increase in operating profit resulted from an 11%
weakening in the average exchange rate (R7,23/US$1,00 in 2006 versus
R6,52/US$1,00 in 2005), and a 9% increase in the average dated Brent crude
oil price (US$64,59 in 2006 versus US$59,21 in 2005), which was partly offset
by the combined effect of the statutory total shutdown of our Sasol Synfuels
operations in September 2006, the starting up of the Synfuels Catalytic
Cracker, production interruptions and lower sales volumes.
We have continued to classify our Sasol Olefins & Surfactants (O&S) business
as a disposal group held for sale and the results continue to be reported as
discontinued operations. The operating profit of Sasol O&S has declined when
compared with the comparable period of the previous year, primarily as a
result of depressed margins in the global detergent alcohol market.
Safety and operations
Our consolidated combined recordable case rate (RCR) has improved from 0,87
at 30 June 2006 to 0,78 at 31 December 2006. The revised RCR includes not
only Sasol employees as in the past, but also incidents relating to service
providers and, from 1 July 2006, the effect of occupational diseases. Further
progress is being made following the implementation of our Safety Improvement
Plan. Safety remains a top priority for the group. It is very pleasing to
report that Sasol Gas achieved an RCR of zero for the six months ending 31
December 2006.
Our Sasol Synfuels operations in Secunda embarked on a statutory total
shutdown in September 2006 (postponed from the previous financial year due to
the national fuel shortage at the time). This shutdown, combined with some
production interruptions, has negatively impacted volumes in Sasol Mining,
Sasol Synfuels and in some of our chemical businesses. A second statutory
phase shutdown is planned for March 2007.
Major capital projects advanced
Cash flow on capital projects amounted to R6,1 billion of which R3,4 billion
(57%) was invested in our South African operations.
Major projects advanced include:
- Progress in the completion of the fuel quality enhancement and polymer
expansion project (Project Turbo), with the polyethylene plant having
concluded its warranty runs and the Synfuels Catalytic Cracker (SCC) having
started up. The SCC is, however, currently underperforming and has been taken
out of operation to make certain modifications. Market demand for fuel will
continue to be met.
- At the Oryx gas-to-liquids (GTL) joint venture with Qatar Petroleum,
following start-up challenges associated with such an integrated and complex
facility, the plant started to produce final product by end-January 2007 and
the first shipment of final product is planned for end-March 2007.
- Progress in the construction of the Escravos GTL project in Nigeria.
The worldwide increase in large engineering and construction contracts has
resulted in a global shortage of engineering and construction resources and
caused strains in these industries. These challenges have resulted in
moderate delays and increased costs of certain projects, including the
polypropylene and octene 3 plants in Secunda and the Arya Sasol plants in
Iran.
This situation has been carefully analysed and mitigation steps aimed to
secure greater owner influence on time schedules and the overall cost of
ownership have been implemented.
Gearing reduced
Our gearing (net debt as a percentage of shareholders` equity) reduced from
29% at 30 June 2006 to 21% at 31 December 2006, due mainly to the increase in
earnings and the proceeds received on the disposal of 25% of Republic of
Mozambique Pipeline Investments Company (Pty) Limited (ROMPCO) and 25% of
Sasol Oil (Pty) Limited.
Dividend increased
The interim dividend declared of R3,10 per share represents an 11% increase
compared with the previous year`s interim dividend. The dividend cover is 4,2
times which is consistent with the interim dividend cover of last year. We
expect to maintain our dividend cover within our targeted range of 2,5 to 3,5
times for the full year.
South African energy cluster
Sasol Mining
The operating profit of Sasol Mining of R411 million was 38% lower than the
prior comparable period primarily because of higher coal purchases from Anglo
Coal`s Isibonelo Colliery, lower production volumes as a result of the Sasol
Synfuels shutdown and the effect of a strike in December 2006, and increases,
within inflationary levels, in operating costs. Furthermore, the production
build-up at Mooikraal Colliery was slower than planned.
Sasol Synfuels
Sasol Synfuels achieved an increase in operating profit of 14% to R8 360
million primarily because of higher oil prices and a weaker rand. Production
volumes were 7% lower as a result of the four-yearly shutdown of one half of
the total plant, the start-up of the Synfuels Catalytic Cracker and some
production interruptions. Operating costs have increased as a result of the
need to import fuel components, as well as higher coal and natural gas costs.
Sasol Oil
Operating profit reduced by 17% to R931 million mainly as a result of lower
refining margins, off a high base, and an increased level of imported petrol,
diesel and fuel components.
Pleasing progress in retail expansion under the Sasol and Exel brands is
being made and our market objectives have been met.
With effect from 1 July 2006, we sold a 25% interest in Sasol Oil (Pty)
Limited (Sasol Oil) to Tshwarisano LFB Investment (Pty) Limited
(Tshwarisano).
Sasol Gas
A 12% increase in sales volumes (both to Sasol Synfuels and external
customers), higher sales prices and the profit on the sale of 25% of ROMPCO
resulted in Sasol Gas increasing its operating profit by 50% to R1 167
million.
The business finalised the sale of a 25% shareholding in ROMPCO, which owns
the natural gas pipeline between Mozambique and South Africa, to Companhia
Mo?ambicana de Gasoduto, a state-owned company in Mozambique, realising a
profit of R346 million.
International energy cluster
Sasol Synfuels International
This business hosts the growth ambitions of the group relating to GTL and
coal-to-liquids (CTL) ventures. Costs increased to R366 million during the
period as a consequence of increased activity.
Representative offices were established in China and India to pursue CTL
opportunities with potential business partners in both countries. Pre-
feasibility studies in the USA are progressing.
Our joint venture, Sasol Chevron, continues to evaluate GTL opportunities in
other locations including Australia and Algeria.
Sasol Petroleum International
Operating profit increased by 33% to R352 million for the six months
primarily due to higher selling prices and a weaker rand/US dollar exchange
rate as well as increased sales volumes.
Chemical cluster
Sasol Polymers
Margin pressure at the beginning of the period under review has been
alleviated through lower feedstock costs and selling price increases.
Production volumes and operating efficiencies were however negatively
affected by the Sasol Synfuels shutdown with operating profit of R262 million
being 34% lower than the result of the previous comparable period.
Sasol Solvents
Stronger product prices and a weaker rand contributed to the positive
performance of Sasol Solvents. However, the effect of the R140 million
reversal of the impairment of the octene 3 plant in the previous comparable
period resulted in operating profit decreasing by 13% to R490 million. On a
comparable basis, before taking the effect of capital items into account,
operating profit
improved by 27%.
Other chemical businesses
Sasol Wax has realised a significant improvement in its operating profit from
R67 million to R268 million, primarily as a result of improved product
margins.
Sasol Nitro has also recorded an improvement in operating profit of 7% to
R323 million, mainly due to higher sales volumes in the fertiliser business.
Profit outlook
Assuming slightly lower oil and commodity chemical prices and a marginally
stronger rand relative to the first six months, earnings in the second half
are expected to be lower than those of the first half. Satisfactory earnings
growth for the full financial year is, however, expected.
We will commission substantial new production capacity (polymers and GTL)
during the year which is expected to benefit our earnings in the 2008
financial year.
Basis of preparation and accounting policies
The condensed consolidated interim financial report for the six months ended
31 December 2006 has been prepared in compliance with the Listings
Requirements of the JSE Limited, International Financial Reporting Standards
(IFRS) (in particular International Accounting Standard 34 Interim Financial
Reporting) and the South African Companies Act, 1973, as amended.
Except as otherwise disclosed, the accounting policies applied in the
presentation of the interim financial report are consistent with those
applied for the year ended 30 June 2006.
The group has changed its accounting policy with regard to costs incurred to
develop the operations of existing, operating mines. Under the amended
accounting policy, all development expenditure incurred after the
commencement of production are capitalised to the extent that they give rise
to future economic benefits and are amortised over their estimated useful
lives. This policy has been adopted with retrospective effect and prior year
figures restated. The effect on earnings and headline earnings per share is
an increase of 1 cent for the year ended 30 June 2006.
Further details will be provided in the annual report for the year ending 30
June 2007.
These condensed consolidated interim financial statements have been prepared
in accordance with the historic cost convention except for certain financial
instruments which are stated at fair value.
The 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.
Acquisition and disposals of businesses
With effect from 1 July 2006, a 25% interest in Republic of Mozambique
Pipeline Investment Company (Pty) Ltd was sold to Companhia de Mo?ambicana de
Gasoduto in terms of the shareholders` agreement. This transaction was
finalised during the current period and a profit of R346 million realised on
this transaction.
With effect from 1 July 2006 Tshwarisano acquired a 25% shareholding in Sasol
Oil for a consideration of R1 450 million. Sasol is providing facilitation
and support for Tshwarisano`s financing requirements. A profit of R315
million was realised on this transaction.
In October 2006, Sasol`s interest in DPI Holdings (Pty) Limited was sold to
Dawn Limited for a consideration of R51 million. The proceeds are receivable
in 2008. A R7 million loss was realised on this sale.
In September 2006, Sasol Nitro acquired the remaining 40% of Sasol Dyno Nobel
(Pty) Limited for a consideration of US$31 million (R221 million).
Disposal group held for sale and discontinued operations
With effect from 30 June 2006, Sasol O&S was classified as a disposal group
held for sale and the results reported as discontinued operations.
Comparative information in the income statement has been restated
accordingly.
The estimated fair value less costs to sell Sasol O&S remain largely
unchanged from that recognised at 30 June 2006. However, when an asset is
classified as held for sale, depreciation may no longer be recognised. The
net asset value of Sasol O&S in the balance sheet has increased by the
earnings of Sasol O&S (which excludes any depreciation expense). As this
increased net asset value exceeds the estimated fair value less costs to sell
the business, it is necessary to recognise a further write-down.
The amount of the write-down of R420 million approximates the unrecognised
depreciation charge.
Post balance sheet date events
We have conducted a preliminary study of the Task Team`s report on possible
reforms to the fiscal regime applicable to windfall profits in South Africa`s
liquid fuel energy sector, with particular reference to the synthetic fuel
industry. We will respond in detail to the National Treasury of South Africa.
Changes in contingent liabilities since 30 June 2006
In terms of the sale of 25% in Sasol Oil to Tshwarisano, Sasol has provided
facilitation for the financing requirements of Tshwarisano. The undiscounted
maximum exposure at 31 December 2006 amounted to R1 051 million. A liability
for the fair value of this guarantee at 31 December 2006, amounting to R39
million, has been recognised.
Principal foreign currency conversion rates
31 Dec 31 Dec 30 Jun
One unit of foreign currency equals 2006 2005 2006
Rand/US$ (closing) 7,01 6,33 7,17
Rand/US$ (average) 7,23 6,52 6,41
Rand/euro (closing) 9,25 7,49 9,17
Rand/euro (average) 9,27 7,85 7,80
Independent review by the auditors
The condensed consolidated balance sheet at 31 December 2006 and the related
condensed consolidated statements of income, changes in equity and cash flow
for the six months then ended have been reviewed by our auditors, KPMG Inc.
Their unmodified review report is available for inspection at the registered
office of the company.
Declaration of dividend number 55
The directors of Sasol Limited have declared an interim dividend of R3,10 per
share (2006: R2,80 per share) for the six months to 31 December 2006. The
dividend has been declared in the currency of the Republic of South Africa.
The salient dates are:
Holders of ordinary shares:
Last day for trading to qualify for and Thursday, 29 March 2007
participate in the interim dividend (cum
dividend)
Trading ex dividend commences Friday, 30 March 2007
Record date Thursday, 5 April 2007
Dividend payment date (electronic and Tuesday, 10 April 2007
certificated register). Electronic
payment will be undertaken simultaneously
Holders of American Depository Receipts
Ex dividend on New York Stock Exchange Thursday, 2 April 2007
Record date Thursday, 5 April 2007
Date for currency conversion Wednesday, 11 April 2007
Dividend payment date Friday, 20 April 2007
On 10 April 2007, 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, at their Central Securities Depository Participant or Broker
credited on 10 April 2007.
Share certificates may not be dematerialised or rematerialised between
Friday, 30 March 2007 and Thursday, 5 April 2007, both days inclusive.
On behalf of the board
Pieter Cox Pat Davies Christine Ramon
Chairman Chief executive Chief financial officer
Sasol Limited
5 March 2007
Registered office:
Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196
PO Box 5486, Johannesburg 2000, South Africa
Share registrars:
Computershare Investor Services 2004 (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)
(Executive): LPA Davies (Chief executive), KC Ramon (Chief financial
officer), VN Fakude, AM Mokaba
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 depository receipts (ADR) program: Cusip number 803866300
ADR to ordinary share 1:1
Depository: 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 2 November 2006 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.
The provisional financial statements are presented on a condensed
consolidated basis.
Turnover
2005 Operating 2006 2005
profit
Restated 2006 Restated
Rm Rm Business unit Rm Rm
705 769 Sasol Mining 411 658
462 443 Sasol Synfuels 8 360 7 336
15 539 18 606 Sasol Oil 931 1 125
814 1 019 Sasol Gas 1 167 780
119 82 Sasol Synfuels (366) (256)
International
3 907 4 610 Sasol Polymers 262 394
4 914 6 082 Sasol Solvents 490 562
4 511 6 029 Other businesses 932 274
30 971 37 640 Per income 12 187 10 873
statement
9 285 10 841 Discontinued - 244
operations -
Sasol O&S
40 256 48 481 12 187 11 117
Balance sheet
at
31 Dec 06 31 Dec 05 30 Jun 06
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Assets
Property, plant and equipment 42 421 39 110 39 826
Assets under construction 24 362 22 837 23 176
Goodwill 457 483 266
Other intangible assets 664 943 775
Post-retirement benefit assets 80 275 80
Deferred tax assets 604 416 691
Other long-term assets 2 697 2 469 2 293
Non-current assets 71 285 66 533 67 107
Assets held for sale 11 794 41 12 115
Inventories 9 004 11 001 8 003
Trade and other receivables 12 035 12 817 12 067
Short-term financial assets 161 17 180
Restricted cash 710 598 584
Cash 6 057 2 940 3 102
Current assets 39 761 27 414 36 051
Total assets 111 046 93 947 103 158
Equity and liabilities
Shareholders` equity 57 917 48 901 52 605
Minority interest 1 515 313 379
Total equity 59 432 49 214 52 984
Long-term debt 15 139 13 653 15 021
Long-term financial liability 36 - -
Long-term provisions 3 643 3 458 3 463
Post-retirement benefit 2 591 2 998 2 461
obligations
Long-term deferred income 2 150 1 020 1 698
Deferred tax liabilities 7 216 6 541 6 156
Non-current liabilities 30 775 27 670 28 799
Liabilities in disposal groups 5 236 - 5 479
held for sale
Short-term debt 2 694 2 858 2 721
Short-term financial liabilities 507 838 514
Other current liabilities 12 084 13 096 12 219
Bank overdraft 318 271 442
Current liabilities 20 839 17 063 21 375
Total equity and liabilities 111 046 93 947 103 158
Income statement
Half year Half year Full year
for the period 31 Dec 06 31 Dec 05 30 Jun 06
ended
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Turnover 37 640 30 971 63 850
Cost of sales and (21 158) (15 322) (33 046)
services rendered
Gross profit 16 482 15 649 30 804
Other operating 456 100 191
income
Marketing and (1 865) (1 715) (3 561)
distribution
expenditure
Administrative (1 836) (1 343) (3 070)
expenditure
Other operating (834) (1 416) (3 839)
expenditure
Translation (216) (402) 254
(losses)/gains
Operating profit 12 187 10 873 20 779
Dividends and 357 138 317
interest received
Income from 192 82 135
associates
Borrowing costs (448) (268) (456)
(net of costs
capitalised)
Profit before tax 12 288 10 825 20 775
Taxation (3 980) (3 648) (6 833)
Profit from 8 308 7 177 13 942
continuing
operations
Discontinued
operations
Net (loss)/profit (97) 226 (3 360)
from discontinued
operations
Profit 8 211 7 403 10 582
Attributable to
Shareholders 7 981 7 311 10 406
Minority interest 230 92 176
8 211 7 403 10 582
Basic earnings per
share
-
attributable Rand 12,79 11,82 16,78
earnings basis
from continuing 12,95 11,45 22,20
operations
from discontinued (0,16) 0,37 (5,42)
operations
-
headline earnings Rand 12,39 11,61 22,98
basis
from continuing 12,03 11,22 22,52
operations
from discontinued 0,36 0,39 0,46
operations
Diluted earnings
per share*
- attributable Rand 12,60 11,58 16,51
earnings basis
from continuing 12,75 11,22 21,84
operations
from discontinued (0,15) 0,36 (5,33)
operations
-headline earnings Rand 12,20 11,37 22,61
basis
from continuing 11,85 10,99 22,16
operations
from discontinued 0,35 0,38 0,45
operations
Dividends per
share
- interim** Rand 3,10 2,80 2,80
- final Rand 4,30
* Taking the Sasol Share Incentive Scheme into account.
** The interim dividend was declared subsequent to 31 December 2006 and is
presented for information purposes only. No provision regarding this interim
dividend has been recognised.
Salient Features
Half year Half year Full year
for the period 31 Dec 06 31 Dec 05 30 Jun 06
ended
Restated Restated
Selected ratios
Operating margin % 32,4 35,1 32,5
Borrowing cost times 17,6 16,5 10,1
cover
Dividend cover times 4,2 4,2 2,3
Dividend cover times 4,2 4,1 3,1
from continuing
operations
Share statistics
Total shares in million 625,2 680,5 683,0
issue
Treasury shares
(share repurchase
programme) million - 60,1 60,1
Weighted average million 623,8 618,5 620,0
number of shares
Restated diluted
weighted average
number of shares million 633,5 631,5 630,2
Share price Rand 258,79 226,50 275,00
(closing)
Market Rm 161 796 154 133 187 825
capitalisation
Net asset value Rand 92,64 78,82 84,45
per share
Other financial
information
Total debt
(including bank
overdraft)
- interest bearing Rm 17 551 16 482 17 884
- non-interest Rm 600 300 300
bearing
Borrowing costs Rm 384 531 1 439
capitalised
Capital Rm 12 805 14 443 13 866
commitments
- authorised and Rm 28 879 30 450 28 060
contracted
- authorised, not Rm 6 828 4 453 6 306
yet contracted
- less expenditure Rm (22 902) (20 460) (20 500)
to date
Guarantees and
contingent
liabilities
- total amount Rm 33 924 32 023 33 212
- liability Rm 11 560 10 935 12 106
included on
balance sheet
Significant items
in operating
profit (continuing
operations)
- employee costs Rm 4 523 3 596 7 647
- depreciation and Rm 1 887 1 643 3 499
amortisation of
non-current assets
Effective tax rate % 32,4 33,7 32,9
Number of
employees
(continuing
& discontinued number 31 852 30 185 31 460
operations)
Average crude oil
price
- dated Brent US$/barrel 64,59 59,21 62,45
Average Rand/US$ 1US$ = Rand 7,23 6,52 6,41
exchange rate
The reader is referred to the definitions contained in the 2006 Sasol Limited
annual financial statements.
statement of changes in equity
Half year Half year Full year
for the period ended 31 Dec 06 31 Dec 05 30 Jun 06
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Opening balance as previously 52 731 43 786 43 786
reported
Effect of change in accounting 253 220 220
policy
Restated opening balance 52 984 44 006 44 006
Shares issued during period 160 258 431
Attributable earnings 7 981 7 311 10 406
As previously reported 7 295 10 373
Effect of change in accounting 16 33
policy
Dividends paid (2 683) (1 920) (3 660)
Movement in foreign currency (246) (629) 1 147
translation reserve
Increase in share based payment 92 84 169
reserve
Increase in cash flow hedge 8 44 359
accounting reserve
Movement in minority interest 1 136 60 126
Closing balance 59 432 49 214 52 984
Comprising
Share capital 3 456 3 461 3 634
Share repurchase programme - (3 647) (3 647)
Retained earnings 53 990 50 646 52 001
Share based payment reserve 872 695 780
Foreign currency translation (435) (1 965) (189)
reserve
Investment fair value reserve 2 2 2
Cash flow hedge accounting 32 (291) 24
reserve
Shareholders` equity 57 917 48 901 52 605
Minority interest 1 515 313 379
Total equity 59 432 49 214 52 984
Cash flow statement
Half year Half year Full year
for the period ended 31 Dec 06 31 Dec 05 30 Jun 06
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Cash receipts from customers 49 229 39 461 80 853
Cash paid to suppliers and (35 655) (27 238) (56 326)
employees
Cash generated by operating 13 574 12 223 24 527
activities
Investment income 600 144 444
Borrowing costs paid (724) (688) (1 745)
Tax paid (3 557) (1 732) (5 389)
Dividends paid (2 683) (1 920) (3 660)
Cash retained from operating 7 210 8 027 14 177
activities
Additions to non-current assets (6 050) (6 190) (13 296)
Acquisition of businesses (221) (147) (147)
Disposal of businesses 2 183 596 587
Cash disposed of on disposal of 33 (1) (1)
businesses
Other net (expenditure
in)/proceeds
from investing activities (183) (254) 582
Cash utilised in investing (4 238) (5 996) (12 275)
activities
Share capital issued 160 258 431
Dividends paid to minority (218) (39) (75)
shareholders
(Decrease)/increase in long-term (43) 335 1 305
debt
Increase/(decrease) in short- 63 (2 452) (2 938)
term debt
Cash effect of financing (38) (1 898) (1 277)
activities
Translation effects on cash and
cash
equivalents of foreign 12 (90) (133)
operations
Increase in cash and cash 2 946 43 492
equivalents
Cash and cash equivalents at 3 244 3 224 3 224
beginning of year
Cash in disposal groups held for 259 - (472)
sale
Cash and cash equivalents at end 6 449 3 267 3 244
of year
Results of discontinued operations - Sasol O & S
Half year Half year Full year
for the period ended 31 Dec 06 31 Dec 05 30 Jun 06
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Turnover 10 841 9 285 18 545
Cost of sales and services (9 119) (7 637) (15 501)
rendered
Other operating income 122 65 342
Operating expenses (1 378) (1 450) (2 810)
Capital items (466) (19) (4 143)
Operating profit/(loss) - 244 (3 567)
Net financing (costs)/income (3) 2 (92)
Taxation (94) (20) 299
Net (loss)/profit from (97) 226 (3 360)
discontinued operations
Headline earnings
Half year Half year Full year
for the period ended 31 Dec 06 31 Dec 05 30 Jun 06
Reviewed Reviewed Audited
Restated Restated
Rm Rm Rm
Reconciliation of headline
earnings
Profit from continuing 8 308 7 177 13 942
operations
Less minority interest (230) (92) (176)
Effect of capital items of (628) (219) 129
continuing operations
Impairment of assets 40 86 155
Reversal of impairment - (140) (140)
Profit on disposal of assets (720) (211) (146)
Scrapping of property, plant 52 46 260
and equipment
Tax effects 53 71 67
Headline earnings of 7 503 6 937 13 962
continuing operations
Net (loss)/profit from (97) 226 (3 360)
discontinued operations
Effect of capital items of 466 19 4 143
discontinued operations
Impairment of assets 74 13 912
Fair value write-down 420 - 3 196
(Profit)/loss on disposal of (28) - 14
assets
Scrapping of property, plant - 6 21
and equipment
Tax effects (146) (4) (498)
Headline earnings of 223 241 285
discontinued operations
Headline earnings 7 726 7 178 14 247
Capital items per business
unit
Sasol Mining (8) (2) (16)
Sasol Synfuels 2 (29) (187)
Sasol Oil 9 (7) (8)
Sasol Gas 371 133 138
Sasol Synfuels International - - -
Sasol Polymers (5) 5 (17)
Sasol Solvents (47) 140 105
Other businesses 306 (21) (144)
Continuing operations 628 219 (129)
Discontinued operations - (466) (19) (4 143)
Sasol O&S
162 200 (4 272)
2 March 2007
Sponsor: Deutsche Securities (Pty) Ltd
Date: 05/03/2007 07:00:10 Produced by the JSE SENS Department.
