Welcome!

News Feed Item

Trading Statement For The Six Months Ended 31 December 2013

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

Forward-looking statements:

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.

SOURCE Sasol

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...