|By PR Newswire||
|February 14, 2014 10:28 AM EST||
JOHANNESBURG, Feb. 14, 2014 /PRNewswire/ --
JSE - SOL; NYSE - SSL
Sasol's headline earnings per share (HEPS) for the six months ended 31 December 2013 is expected to increase by between 22% and 28%, and earnings per share (EPS), for the same period, is expected to increase between 0% and 6%, compared to the prior comparable period. Excluding the impact of the impairment of our Canadian shale gas assets, EPS is expected to increase by between 44% and 50%.
Sasol's profitability for the first half of the 2014 financial year benefited from a strong group-wide operational performance, with Sasol Synfuels' production volumes remaining stable at 3,7 million tons for the period, despite a planned total and phased shutdown of the east factory during September 2013. Normalised Sasol Synfuels volumes increased by 3% on a comparable basis. Our ORYX GTL operations continue to exceed expectations with an average utilisation rate of 94% for the period under review. The benefit of a 19% weakening of the average rand/US dollar exchange rate and a slight improvement in chemical prices further supported Sasol's financial performance, despite the average Brent crude oil price remaining relatively flat. We expect our cost inflation for the period, normalised for the impact of the weaker rand, to be in line with market inflation.
Based on Talisman's announcement that it would sell its share in the Montney shale gas assets, coupled with a further decline of conditions in the North American gas market, Sasol undertook an evaluation of our share in the Montney assets. We have taken the decision to impair our Canadian gas investment by approximately R5,3 billion (CAD540 million). Notwithstanding, our investments in the Montney region continue to provide a strategic resource and gas price hedge for our North American downstream GTL plans.
During December 2013, Sasol signed an agreement to dispose of most of our Sasol Solvents Germany GmbH assets. The conclusion of the sale is dependent on certain conditions being met, including approval by the European anti-trust authorities. An impairment of R466 million (€32 million) was recognised pertaining to the affected assets. It is expected, once final transaction approval has been obtained, that a loss on the disposal will be recognised during the second half of the 2014 financial year.
The disposal of our investment in Arya Sasol Polymer Company (ASPC) was completed on 16 August 2013 and the full purchase consideration has been received from the buyer. A final loss of R198 million has been recognised in the first half of the 2014 financial year on the disposal. The percentage increase in HEPS would have been higher if ASPC had been excluded from comparative periods.
Sasol maintains a low gearing and solid financial position, supported by continued strong cash generation from our global operations. We remain committed to our progressive dividend policy.
We continue to focus on those factors within our control including improved project execution, operational efficiencies, margin improvement and cost containment. We are making good progress on our business performance enhancement programme to ensure that Sasol remains competitive over the long-term. Further updates on this initiative will be communicated at our half-year end results announcement. Our cost inflation for the 2014 financial year, normalised for the impact of a weaker rand, is expected to be slightly above the indicative South African producers' price index trend.
This trading statement only deals with the comparison to the first half of the 2013 financial year. Guidance will be provided on the full 2014 financial year results when there is a reasonable degree of certainty in this regard.
As reported in our most recent Chief Financial Officer Letter, Sasol adopted IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, and IFRS 12, Disclosure of Interests in Other Entities effective from 1 July 2013. This will change the format of the reporting of Sasol's financial results, but will not significantly impact normal or headline earnings. As these standards have been applied with retrospective effect, we will restate our comparative financial results and financial position. Further guidance on the restated comparatives will be provided ahead of our results announcement for the six months ended 31 December 2013.
The financial information that this trading statement is based on has not been reviewed or reported on by the Company's external auditors.
Sasol's financial results for the six months ended 31 December 2013 will be announced on Monday, 10 March 2014.
Sponsor: Deutsche Securities (SA) Proprietary Limited
Sasol Investor Relations Team
Tel.: +27 (0)11 441 3113
Sasol may, in this document, 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 9 October 2013 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.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Jun. 1, 2016 03:15 AM EDT Reads: 3,342
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Jun. 1, 2016 03:00 AM EDT Reads: 966
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
Jun. 1, 2016 02:45 AM EDT Reads: 1,023
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Jun. 1, 2016 01:30 AM EDT Reads: 2,054
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
Jun. 1, 2016 12:30 AM EDT Reads: 2,855
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Jun. 1, 2016 12:00 AM EDT Reads: 1,946
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
Jun. 1, 2016 12:00 AM EDT Reads: 2,535
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
Jun. 1, 2016 12:00 AM EDT Reads: 1,258
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
May. 31, 2016 11:30 PM EDT Reads: 954
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
May. 31, 2016 11:15 PM EDT Reads: 2,268
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 31, 2016 11:15 PM EDT Reads: 1,065
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
May. 31, 2016 11:00 PM EDT Reads: 3,363
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
May. 31, 2016 10:45 PM EDT Reads: 3,306
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 31, 2016 10:00 PM EDT Reads: 2,778
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
May. 31, 2016 10:00 PM EDT Reads: 1,875