Sasol Ltd
Company Summary
Financial Data:
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Recent news
- 10/26/2023 - TotalEnergies Plans... (subscriber access)
- 2/23/2023 - TotalEnergies Signs... (subscriber access)
- 9/6/2022 - Sasol and ITOCHU Sign... (subscriber access)
- 7/18/2022 - Sasol Declares Force... (subscriber access)
- 4/18/2022 - Sasol Reconsiders Stake... (subscriber access)
Investor Presentations
Company Transactions
Date: 12/31/2020
Type: Joint Venture
SELLERS:
Sasol Ltd
DETAILS:
COST: 2 $B
NOTES:
LyondellBasell & Sasol announced the formation of the 50/50 Louisiana Integrated PolyEthylene JV LLC, for which Lyondell will pay $2 billion. The JV will operate and own "Sasol's 1.5 MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants and associated infrastructure."
LyondellBasell & Sasol announced the formation of the 50/50 Louisiana Integrated PolyEthylene JV LLC, for which Lyondell will pay $2 billion. The JV will operate and own "Sasol's 1.5 MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants and associated infrastructure."
REGIONS:
Lake Charles
Date: 12/22/2020
Type: Acquisition
NOTES:
Sasol has entered into a deal to sell their stake in a 175-MW Mozambique gas-fired power plant to Azura Power for $145 million. The agreement included a 49% stake in the asset and is part of a broader $3.5 billion asset sale program.
Sasol has entered into a deal to sell their stake in a 175-MW Mozambique gas-fired power plant to Azura Power for $145 million. The agreement included a 49% stake in the asset and is part of a broader $3.5 billion asset sale program.
REGIONS:
Africa
Date: 6/30/2020
Type: Acquisition
NOTES:
Santos Ltd. announced that it would be selling off a 25% position in the Darwin LNG Facility along with the Bayu-Undan gas field in NW Australia for $390 million. The deal is contingent on Santos closing on their purchase of Conoco's business in the area for $1.39 billion. The gas field being marketed is expected to dry up by 2022.
Santos Ltd. announced that it would be selling off a 25% position in the Darwin LNG Facility along with the Bayu-Undan gas field in NW Australia for $390 million. The deal is contingent on Santos closing on their purchase of Conoco's business in the area for $1.39 billion. The gas field being marketed is expected to dry up by 2022.
REGIONS:
Australia
News & Press Releases
Criterion News
- 10/26/2023 - TotalEnergies Plans... (subscriber access)
- 2/23/2023 - TotalEnergies Signs... (subscriber access)
- 9/6/2022 - Sasol and ITOCHU Sign... (subscriber access)
- 7/18/2022 - Sasol Declares Force... (subscriber access)
- 4/18/2022 - Sasol Reconsiders Stake... (subscriber access)
- 12/22/2020 - Sasol Divesting... (subscriber access)
- 12/2/2020 - LyondellBasell & Sasol... (subscriber access)
- 11/16/2020 - Sasol Completes Final... (subscriber access)
- 10/22/2020 - Sasol Gulf Coast LDPE... (subscriber access)
- 10/22/2020 - Sasol Liquid Fuels and... (subscriber access)
- 10/22/2020 - Sasol Gulf Coast... (subscriber access)
- 10/7/2020 - LyondellBasell Prices... (subscriber access)
- 10/2/2020 - LyondellBasell... (subscriber access)
- 9/22/2020 - Sasol Issues Update on... (subscriber access)
- 8/31/2020 - Sasol Reports Damage to... (subscriber access)
- 7/24/2020 - Sasol Delays Lake... (subscriber access)
- 7/6/2020 - Sasol Gives Up... (subscriber access)
- 6/29/2020 - Sasol Marketing Sale of... (subscriber access)
- 6/23/2020 - Sasol Brings Additional... (subscriber access)
- 5/15/2020 - Sasol Adds Additional... (subscriber access)
- 4/21/2020 - Sasol Looking to Divest... (subscriber access)
- 1/14/2020 - Sasol Confirms Explosion... (subscriber access)
- 12/17/2019 - Sasol Resolves Issues at... (subscriber access)
- 11/25/2019 - Sasol Reports its 2H19... (subscriber access)
- 10/15/2019 - Sasol Completes Lake... (subscriber access)
- 8/29/2019 - Sasol Reports Beneficial... (subscriber access)
- 8/28/2019 - Sasol's Ethane Cracker... (subscriber access)
- 8/26/2019 - Sasol Warns Earnings... (subscriber access)
- 8/16/2019 - Sasol Delays 2Q Results... (subscriber access)
- 6/7/2019 - Sasol Enters Into $1.8B... (subscriber access)
Press Releases
- The earnings per share is expected to be between R22,76 and R24,07 compared to the prior half year earnings per share of R6,56 (representing an increase of more than 100%);
- Headline earnings per share (HEPS) is expected to be between R18,59 and R19,78 compared to the prior half year HEPS of R5,94 (representing an increase of more than 100%); and
- Core HEPS (CHEPS**) is expected to be between R6,94 and R8,79 compared to the prior half year CHEPS of R9,25.
- Unrealised gains of R5,4 billion on the translation of monetary assets and liabilities due to the 15% strengthening of the closing rand/US dollar exchange rate compared to June 2020;
- Unrealised gains of R4,7 billion on the valuation of financial instruments and derivative contracts; and
- R3,3 billion gain on the realisation of the foreign currency translation reserve (FCTR), mainly on the divestment of 50% interest in the LCCP Base Chemicals Business.
- The loss per share is expected to be between R146,75 and R148,15 compared to the prior year earnings per share of R6,97 (representing a decline of more than 100%);
- Headline loss per share is expected to be between R8,72 and R14,86 compared to the prior year headline earnings per share (HEPS) of R30,72 (representing a decline of more than 100%); and
- Core HEPS (CHEPS**) is expected to be between R11,02 and R18,56 compared to the prior year CHEPS of R37,65.
- Energy R12,5 billion across the portfolio;
- Base Chemicals R71,3 billion, primarily in the United States; and
- Performance Chemicals R27,7 billion, primarily relating to its share of ethylene producing assets in the United States.
- Unrealised losses of R7,4 billion on the translation of monetary assets and liabilities due to the 23% weakening of the closing rand/US dollar exchange rate; and
- Unrealised losses of R4,8 billion on the valuation of financial instruments and derivative contracts.
- Depreciation of R3,9bn attributable to those Lake Charles Chemicals Project (LCCP) units that reached beneficial operation.
- Sasol has current cash and available facilities of approximately US$2,5bn; and
- Sasol has no significant debt maturities before May 2021.
- Business optimisation to reduce costs;
- Working capital optimisation;
- Re-scheduling some capital expenditure;
- Expanding the scope of, and accelerating, the asset disposal programme to realise proceeds in excess of the current US$2 billion target;
- Engaging our lending groups. Thus far, engagements have been constructive; and
- Assessing alternatives to manage Sasol's near-term debt covenant constraints, including a potential equity issue.
- Working capital ratio of 15%; through focused management actions
- Normalised cash fixed cost increased by 5,4% within inflation guidance
- Net debt: EBITDA* of 2,9 times; below updated bank covenant of 3,5 times
- Gearing of 64,5% at upper end of guidance
- EPS down 73% to R6,56 and HEPS down 74% to R5,94
- Cash generated by operating activities down 21% to R19,6 billion
- FY20 interim dividend passed to protect and strengthen balance sheet
- Production:
- Synfuels production volumes 4% up; full year production guidance 7,7mt to 7,8mt
- Eurasian based assets production volumes up 2%
- ORYX GTL utilisation of 98%; extended planned shutdown will impact full year
- Natref production volumes 8% down due to planned shutdown
- HDPE continues to produce above expectation
- Sales:
- Base Chemicals sales volumes up 21%
- Performance Chemicals sales volumes up 6%
- Liquid fuels sales volumes up marginally
- 99% overall project completion
- Project safety recordable case rate (RCR) of 0,10
- Cost tracking US$12,8 billion; ~80% production capacity in use
- US ethane cracker producing to plan within pipeline specifications
- ETO unit achieved beneficial operation on 30 January 2020
- LLDPE and EO/EG units producing at targeted levels
- LDPE unit beneficial operation expected in second half of calendar year 2020
- Safety RCR of 0,27, excluding illnesses; regrettably two fatalities
- Achieved Level 3 B-BBEE** status
- R784 million invested globally in skills and socioeconomic development
- R14,4 billion in procurement spend with SA black-owned businesses
- GHG emission reduction road map on track for sharing at 2020 Capital Markets Day
- Earnings before interest and tax (EBIT) decreased by 53% to R9,9 billion compared to the prior period;
- Adjusted EBITDAiv declined by 27% from R26,8 billion in the prior period to R19,6 billion;
- Basic earnings per share (EPS) decreased by 73% to R6,56 per share compared to the prior period;
- Headline earnings per share (HEPS) decreased by 74% to R5,94 per share compared to the prior period; and
- Core headline earnings per sharev (CHEPS) decreased by 57% to R9,20 compared to the prior period.
- Sasol conducted insufficient due diligence into and inadequately accounted for multiple issues with its Lake Charles chemical plant ("LCCP"), and misrepresented the LCCP's true cost;
- Construction and operation of the LCCP was plagued by delays, rising costs, and technical issues; and
- Sasol's senior management exacerbated these issues by engaging in improper behavior concerning financial reporting and oversight with respect to the LCCP.
- Earnings per share (EPS) for the financial half year are expected to be between R5,37 and R7,76 per share. This is a decrease of between 68% and 78% from the prior half year EPS of R23,92;
- Headline earnings per share (HEPS) are expected to be between R4,79 and R7,11 per share. This is a decrease of between 69% and 79% from the prior half year HEPS of R23,25. There were no significant impairments recorded for the half year 2020;
- Core HEPS (CHEPS**) are expected to be between R7,90 and R10,04 per share. This is a decrease of between 53% and 63% from the prior half year CHEPS of R21,45.
- The Mining business updating their full year forecasted productivity to 1 170 – 1 200 t/cm/s. This will however result in further external coal purchases of approximately 1,3 – 1,6 million tons during H2 FY20 to supplement the contracted Isibonelo volumes and enable recovery to desired stockpile levels;
- Gas production volumes from the Petroleum Production Agreement in Mozambique is expected to be 114 – 118 bscf, in line with previous market guidance;
- Secunda Synfuels Operations full year production is forecasted to be approximately 7,7 – 7,8 million tons, in line with previous market guidance;
- Natref is targeting production rates of above 600m³/h for the remainder of the year;
- Energy's sales volumes are on track to achieve previous market guidance of approximately 57 – 58 mm bbl for FY20;
- As previously communicated, ORYX GTL expects to achieve a utilisation rate of 55% – 60% for FY20 due to an extended planned shutdown during H2 FY20;
- In line with previous market guidance, Base Chemicals sales volumes (excluding Polymers US products) are expected to be 1 – 2% higher than the prior year, and the total sales volumes are expected to be 15 – 20% higher than the prior year; and
- Given the continuing macroeconomic headwinds and the softer outlook on global GDP growth in calendar year 2020, Performance Chemicals expects sales volumes for the full financial year to remain flat to slightly below the prior year's level (excluding LCCP). Total sales volumes for the business are expected to be 7 - 9% higher than the prior year.
- Headline earnings per share (HEPS) are expected to decrease by at least 20%, or R4,65, compared to the HEPS of R23,25 reported for the period ended 31 December 2018; and
- Earnings per share (EPS) are expected to decrease by at least 20%, or R4,78, compared to EPS of R23,92 reported for the period ended 31 December 2018.
- Headline earnings per share (HEPS) up 12% to R30,72
- Core headline earnings1 per share (CHEPS) up 5% to R38,13
- Earnings Before Interest and Tax (EBIT) down 45% due to higher remeasurement items
- Cash generated by operating activities up 20%
- Normalised cash fixed cost – below our 6% inflation target
- Production:
- Secunda Synfuels Operations achieving annualised run rate of 7,8 mt post the full shutdown
- Natref achieved a production run rate of 637m³/h, highest in last 8 years
- High Density Polyethylene plant has produced at upper end of design capacity
- ORYX GTL utilisation of 81% due to unplanned maintenance shutdowns
- Mining productivity up 3%
- Sales:
- Liquid fuel sales volumes up 2%, resulting from a strong Natref performance
- Base Chemicals sales volumes up 4%, offset by softer commodity chemical prices
- Performance Chemicals sales volumes down 3% impacted by 1st half 2019 external supply constraints and 2nd half 2019 softer macroenvironment in Europe and Asia
- Gearing elevated at 56,3%
- Net debt: Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) 2,6 times
- Bank Net debt: EBITDA 2,2 – 2,4 times – below USD bank covenant of 3 times
- Final FY19 dividend passed to protect and strengthen our balance sheet
- Working capital of 15% of revenue – benefitting from focused management initiatives
- 98% overall project completion, with Recordable Case Rate (RCR) of 0,11
- Cracker reached beneficial operation in August 2019
- Linear Low Density Polyethylene and Ethylene Oxide/Ethylene Glycol units ramping up to targeted levels
- Cost tracking estimate of US$12,6 – US$12,9 billion
- Safety RCR, improved to 0,26; regrettably three fatalities
- Achieved Level 4 Broad-Based Black Economic Empowerment status
- R19 billion in procurement spend with SA Black-owned businesses
- Developing our Greenhouse Gas emission reduction roadmap
- Sasol Oil tax dispute settled
- Duplication of investment allowances of approximately $230 million.
- Correction for certain contracts and variation orders of approximately $180 million.
- Forecast improvements not expected to be realised and adjustments for potential insurance claims and procurement back-charges of approximately $120 million.
- Repair and replacement of defective components and related impacts on units such as the Ethane Cracker, Ethylene Oxide / Ethylene Glycol and Utilities of approximately $210 million; and
- Remaining work and finishing activities, primarily on the Low Density Polyethylene, Ziegler, Alumina and Guerbet units of approximately $260 million.
- The primary responsibility for shortcomings in relation to LCCP lies with the former leadership of the LCCP's Project Management Team (PMT), which engaged in conduct that was inappropriate, demonstrated a lack of competence, and was not transparent. However, on balance, the Board finds that there is not sufficient evidence to conclude that these individuals acted with an intent to defraud.
- In addition, certain governance shortcomings relating to the LCCP also contributed, including a culture of excess deference within the control environment and governance structures that oversaw the LCCP.
- No earnings, financial position, or cash flow restatements are required.
- Competence - Insufficient experience within the LCCP leadership team in executing mega projects.
- Conduct - Inappropriate conduct and an improper tone at the top of the LCCP, including an excessive focus on maintaining cost and schedule estimates at the expense of providing accurate cost and schedule estimation to oversight bodies (including Joint Presidents and Chief Executive Officers (Joint CEOs)) within the Company.
- Segregation of duties - Insufficient segregation of duties of the LCCP project controls environment from the LCCP project execution environment, which prevented the identification of certain potential errors in cost and schedule estimation.
- Control procedures - Inadequate control procedures within the LCCP control environment that allowed erroneous and/or unsupported reporting by the LCCP leadership to go unchallenged without proper escalation of potential red flags.
- Ethics process - Inadequate procedures to ensure that internal ethics complaints as to the LCCP were escalated appropriately.
- Project-related Control Environment - A culture of excess deference within the control environment that oversaw the LCCP caused certain individuals with control responsibilities and in oversight committees, including but not limited to the Steering Committee created to oversee the LCCP, to exhibit insufficient scepticism toward reporting by the LCCP leadership team.
- Reassigned oversight and accountability for the LCCP to a new Executive Vice President as of 1 April 2019 and added additional project management resources to the LCCP.
- Implemented a new LCCP controls structure, independent from the LCCP's execution activities, and redesigned controls on cost reporting regarding the LCCP to ensure segregation of duties, control effectiveness, and appropriate oversight.
- Commissioned additional external assurance work to validate aspects of the Company's estimates regarding the LCCP's cost and schedule.
- Engaged in consequence management, including initiating disciplinary action against the Executive Vice President previously in charge of the LCCP and removing him from all work responsibilities, and effected the negotiated separation from the Company of the three Senior Vice Presidents with roles in the project.
- For FY2019, the Joint CEOs were awarded zero as the value of their short-term incentive.
- For FY2019, all members of the Group Executive Committee (GEC) were awarded zero as the value of their short-term incentive.
- Reduced incentives awards for individuals company-wide based on relation and/or proximity to LCCP.
- Requiring that various employees involved in the LCCP and/or its oversight engage in additional training, including on reporting obligations.
- Re-evaluating the effectiveness of the finance function holistically with a specific focus on parts of the function supporting Sasol's business in the United States, which will be led by the Audit Committee.
- Continuing with the roll-out of the Aspirational Culture programme within the entire Group and reconfirming critical leadership behaviours on a Group-wide basis.
- Revising the Company's procedures regarding the escalation of ethics complaints and internal investigation findings.
- North American value chain R12,9 billion (US$914 million). The Ethylene Oxide/Ethylene Glycol (EO/EG) CGU and the Tetramerization (TET) CGU were impaired by R5,5 billion (US$388 million) and R7,4 billion (US$526 million) respectively. The impairments were mostly as a result of an increase in capital cost for the LCCP and softer forecasted US ethylene and global Mono-ethylene Glycol (MEG) prices based on the latest expert consultants' macro-economic assumptions as at 30 June 2019.
- The Ammonia CGU in the Southern African value chain was impaired by R3,3 billion mainly as a result of much softer forecasted international ammonia sales prices.
- The Canadian shale gas business was further impaired by R1,9 billion (CAD181 million) during the financial year.
- Mining productivity improved by 5%, with a 22% decrease in external purchases.
- Secunda Synfuels Operations (SSO) achieved an excellent performance post the total West factory shutdown, enabling full year production levels in line with our prior year.
- Liquid fuels sales volumes increased by 2% to 60 million barrels, exceeding previous market guidance.
- Base Chemicals sales volumes (excluding Polymers US products) showed a strong recovery during the second half of the financial year, exceeding our previous market guidance.
- High Density Polyethylene (HDPE) production volume in the US was 218kt. The Linear Low Density Polyethylene (LLDPE) and EO/EG plants are ramping up, and achieved saleable production of 103kt and 41kt, respectively.
- Performance Chemicals sales volumes declined by 3% due to external supply constraints and a softer macro-environment. The Speciality Chemical portfolio remains resilient.
- LCCP's schedule remains on track with the Ethylene Glycol/Ethylene Oxide Unit due to achieve beneficial operation within days. The only revision to the schedule is the Guerbet Unit which will now be on stream in February 2020. As at the end of March 2019 project completion was at 96% with construction completion at 89%.
- Sasol remains confident that the longer term EBITDA outlook for the LCCP remains robust.
- The forecast total capital cost for the project has increased to $12,6 – 12,9 billion, including a $300 million contingency. The drivers of the changes in capital costs are understood and a series of mitigating actions are being taken to ensure delivery within the revised parameters.
- Sasol's balance sheet is sufficiently robust and management actions are focused on deleveraging the balance sheet, simplifying the asset portfolio and executing our value based strategy.
- The first derivative unit, Linear Low Density Polyethylene, achieved beneficial operation on 13 February 2019 and the plant continues to ramp up in line with expectations.
- We have achieved beneficial operation of the Ethylene Glycol unit (EG), with beneficial operation of the Ethylene Oxide unit (EO) expected in the coming days.
- The Ethane Cracker is still expected to achieve beneficial operation in July 2019.
- The remainder of the LCCP schedule for beneficial operation is as previously indicated in February 2019 apart from the beneficial operation of the last derivative plant (Guerbet unit), which is expected to be one month later in February 2020.
- As of the end of March 2019, overall project completion was at 96%, with construction completion at 89% and capital expenditure on the project amounted to $11,4 billion.
- Correction for duplication of investment allowances of approximately $230 million.
- Correction for certain contracts and variation orders managed by Sasol, outside the primary engineering, procurement and construction contract, of approximately $180 million.
- Forecast improvements not expected to be realised and adjustments for potential insurance claims and procurement back-charges of approximately $120 million.
- Work to correct previously identified defective carbon steel forgings significantly impacted critical path activities with a greater than expected cost impact. This included the removal and re-instatement of insulation, instrumentation and cabling, as well as post repair heat treatment.
- Replacement of the internals of numerous heat exchangers due to corrosion.
- The completion of painting, insulation and fireproofing at the Ethane Cracker and EO/EG was impacted as a result of the necessary repair activities outlined above.
- The review identified a significant increase in required finishing activities such as heat tracing, insulation, fireproofing and associated work as well as additional infrastructure costs.
- Worse than anticipated weather impact.
- Lower than assumed productivity and associated time extension.
- A new risk identified relating to bolting materials that may need to be replaced.
- Other unforeseen items impacting finishing and commissioning activities.
- All BEE Contracts entered into by SOLBE1 shareholders will terminate and the signing of a BEE Contract by a prospective purchaser of SOLBE1 share will no longer be required;
- All parties wishing to trade in SOLBE1 shares will now be verified by the BEE Verification Agent; and
- The rights and obligations of all SOLBE1 shareholders will be governed by the provisions of Schedule 6 of Sasol's memorandum of incorporation.
- Financial performance
- Earnings per share up 112% to R23,92
- EBITDA up 10% to R27 billion
- Core headline earnings per share up 18% to R21,45
- Headline earnings per share up 32% to R23,35
- Normalised cash fixed costs contained to below inflation target
- Dividend per share of R5,90 (3,6x CHEPS)
- Operational performance:
- Extended shutdown at SSO impacted production and sales volumes, run-rate post the shutdown averaging 7,8 mt
- Mining productivity up 8%
- Liquid fuels sales volumes up 4%, due to strong SSO and Natref performance
- ORYX GTL utilisation at 99%
- Ethylene supply constraints result in 3% decrease in Performance Chemicals sales volumes
- Base Chemicals volumes down 11%, impacted by SSO shutdown
- Advancing Lake Charles Chemicals Project (LCCP):
- 94% complete, capital expenditure of US$10,9 billion
- Cost and schedule overrun disappointing, cost estimate revised to US$11,6 – 11,8 billion
- Social value and transformation:
- Achieved Level 4 contributor status ahead of schedule
- R9,4 billion in procurement from SA Black-owned businesses
- Invested R918 million in skills and socio-economic development
- Sasol South Africa declared first dividend of R11,44 per share, thereby benefiting our Sasol Khanyisa shareholders
- Safety
- Recordable Case Rate (RCR), excluding illnesses, improved to 0,26. We regrettably had two fatalities
- Translation impact of closing exchange rate
- Mark-to-market valuation of hedges of oil and foreign exchange hedges
- Sasol Khanyisa share-based payment
- LCCP ramp-up depreciation
- Reversal of provision for tax litigation matters
- Mining's productivity continues to improve although we have not yet achieved targeted productivity levels. Our productivity rate improved by 8% from 1 099/t/cm/s in the prior period to 1 187/t/cm/s in December 2018. Supply to our internal value chain remains sufficient and our stock pile has been restored to levels above our working capital target. We are now planning to reduce external purchases to pre-2017 strike levels.
- Production volumes from our Eurasian Operations decreased by 8% mainly resulting from external ethylene feedstock supply shortages and planned shutdowns.
- ORYX GTL continued to deliver an exceptional performance, with an average utilisation rate of 99%.
- Natref improved its performance by 43% and achieved a production run-rate of 641m3/h.
- The planned Steam Station 2 shutdown at Sasolburg Operations (SO) was completed ahead of schedule and achieved stable operations post the shutdown. A detailed study was undertaken that proved the viability of specific SO assets, which are not gas dependent, to have a useful life beyond 2034. The useful life of these assets was therefore extended to 2050.
- Liquid fuels sales volumes increased 4%, enabled by the strong performance from Natref, and increased sales to wholesale and commercial customers.
- Sales volumes from our Performance Chemicals business decreased by 3%, mainly as a result of a force majeure in Europe triggered by external ethylene supply constraints; and
- Base Chemicals sales volumes decreased by 11%, impacted by the extended shutdown at SSO and lower fertiliser demand. Our 50% joint venture high density polyethylene plant (HDPE) in the US with INEOS Olefins and Polymers USA is ramping up to expectations and delivered 91kt of saleable product for Sasol for the six months.
- As at the end of December 2018, engineering and procurement activities were substantially complete and construction progress was at 84%. Our overall project completion was 94% and capital expenditure amounted to US$10,9 billion.
- In Mozambique, the Production Sharing Agreement (PSA) reservoirs have proved more complex than expected with reduced expectation of recoverable volumes. The remaining uncertainty coupled with a lower-for-longer forecast in the oil price, suggest a revised development concept maximising the use of existing wells and processing facilities. A PSA Phase 1 project decision for feasibility studies is planned for the last quarter of calendar year 2019, with a Field Development Plan amendment to be submitted in December 2019. Phase 1 gas results confirm resource cover for Central Térmica de Temane (CTT), formerly known as the Mozambique Gas to Power Project (MGtP), and which was also confirmed via an independent resource certification study. A gas term sheet is being negotiated for gas supply to Electricidade de Moçambique (EDM) for CTT.
- Sasol is one of four participating interest owners of the Etame Marin Permit, and holds a 30% participating interest, with VAALCO Gabon SA being the operator.
- SSO maintaining post shutdown run-rates, targeting the upper-end of 7,5 to 7,6 million tons;
- Liquid fuels sales volumes of approximately 57 to 58 million barrels in line with our previous market guidance;
- Base Chemicals sales volumes, excluding US produced products, to be 1% lower for the financial year;
- Performance Chemicals annual sales volumes to be between 1% to 2% higher (excluding LCCP);
- Gas production volumes from the Petroleum Production Agreement (PPA) in Mozambique to be between 114 bscf to 118 bscf;
- ORYX GTL achieved an average utilisation rate of 90% due to a leak discovered in December 2018 in the waste heat boiler of one of the reformer reactors. We therefore expect to have an extended shutdown to repair the waste heat boiler;
- Normalised cash fixed costs to remain in line within our inflation assumption of 6%;
- Capital expenditure, including capital accruals, of R52 billion for 2019 and R30 billion for 2020 as we progress with the execution of our growth plan and strategy. Capital estimates may change as a result of exchange rate volatility and other factors;
- Gearing and net debt to EBITDA will be managed within our Board approved levels of between 45% and 49% and 2,0 times and 2,3 times respectively;
- Rand/US dollar exchange rate to range between R13,85 and R14,50; and
- Average Brent crude oil prices to remain between US$60/bbl and US$65/bbl.
- Changes to scope
- Late scope additions for the Cracker as a result of incomplete engineering work not timeously identified;
- Increased scope to ensure process safety for the Cracker and Ethylene oxide / Ethylene Glycol (EO/EG) unit due to defective carbon steel forgings. The impact was fully assessed late in Q4 CY2018 leading to a one month delay;
- A cumulative month of work being lost as a result of excessive rainfall in Q4 CY2018;
- Productivity losses exacerbated by high absenteeism around public holidays and construction rework since end November 2018; and
- Schedule delays of the remaining units will result in additional overhead costs.
- The effective date of the Sasol Khanyisa Transaction is today, Friday, 1 June 2018.
- 2 973 022 additional SOLBE1 Shares will be issued to SOLBE1 and SIPBEE shareholders and shareholders of Sasol Inzalo Groups Limited (RF) today.
- In addition, 2 458 880 SOLBE1 Shares and 2 033 680 SOL Shares will be issued today to the trustees of the Sasol Khanyisa Employee Share Ownership Plan Trust. The SOLBE1 and SOL Shares held by the Trust cannot be disposed of for a period of three years.
1/29/2021 - Trading Statement And Business Performance Metrics For The Six Months Ended 31 December 2020
Trading Statement And Business Performance Metrics For The Six Months Ended 31 December 2020
Source: PR Newswire
Orignial Article: https://contentapi.cision...
JOHANNESBURG, Jan. 29, 2021 /PRNewswire/ -- Sasol is expected to deliver a strong set of results for the six months ended 31 December 2020 (2021 financial half year), underpinned by a strong cash cost, working capital and capital expenditure performance despite the effects of the COVID-19 pandemic, a severe decline in crude oil prices and softer chemical product prices. In addition, our Lake Charles production was impacted by hurricanes experienced in the US Gulf Coast, resulting in lost production of approximately 300kt for the 2021 financial half year.
Shareholders are advised that, for the 2021 financial half year:
Sasol´s adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA*) is expected to decline by between 0% and 10% from R19,8 billion in the prior year, to between R17,9 billion and R19,8 billion. This decline results from a 23% decrease in the rand per barrel price of Brent crude oil coupled with lower sales volumes due to softer demand attributable to COVID-19 lockdowns and the aforementioned hurricanes impacting our gross margins adversely. This was offset by a strong cost performance, supported by delivery towards the US$1 billion integrated crisis response plan commitment.
Notable non-cash adjustments for the 2021 financial half year include:
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.
Sasol will release its 2021 financial half year results on Monday, 22 February 2021. Sasol´s President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul Victor, will present the results. The pre-recorded presentation will be available on 22 February 2021 on the following link: presentation link
A conference call will also be hosted via webcast on 22 February 2021 at 15h00 (SA time) with Fleetwood Grobler and Paul Victor to discuss the results and provide an update of the business. Please confirm your participation by registering online: webcast link
Production and sales metrics for the 2021 financial half year
Sasol has published its production and sales performance metrics for the 2021 financial half year, on the Company´s website at www.sasol.com, under the Investor Centre section: https://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
* Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation, share-based payments, remeasurement items, change in discount rates of our rehabilitation provisions, all unrealised translation gains and losses, and all unrealised gains and losses on our derivatives and hedging activities.
** Core HEPS is calculated by adjusting headline earnings with non-recurring items, earnings losses of significant capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, all translation gains and losses (realised and unrealised), all gains and losses on our derivatives and hedging activities (realised and unrealised), and share-based payments on implementation of Broad-Based Black Economic Empowerment (BBBEE) transactions. Adjustments in relation to the valuation of our derivatives at period end are to remove volatility from earnings as these instruments are valued using forward curves and other market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of the group´s sustainable operating performance.
Adjusted EBITDA and Core HEPS are not defined terms under IFRS and may not be comparable with similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of the directors of Sasol. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Sasol´s financial position, changes in equity, results of operations or cash flows.
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, Investor Relations Officer
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/trading-statement-and-business-performance-metrics-for-the-six-months-ended-31-december-2020-301217895.html
SOURCE Sasol Limited
Article Date
1/29/202112/21/2020 - SOL: Sasol - DIvestment Of Full Shareholding In Central Termica De Ressano Garcia S.A. (CTRG)
SOL: Sasol - DIvestment Of Full Shareholding In Central Termica De Ressano Garcia S.A. (CTRG)
Source: PR Newswire
JOHANNESBURG, Dec. 21, 2020 /PRNewswire/ -- Sasol is pleased to announce that a Sale Securities Purchase Agreement has been signed with Azura Power Limited for the divestment of the Company's full shareholding in CTRG, the gas-to-power plant located in Ressano Garcia, Mozambique.
The transaction is subject to a number of conditions precedent, which include regulatory approval and the waiver of pre-emption rights held by Electricidade de Mocambique (EDM), the Mozambican state-owned electricity company.
The consideration will be approximately USD145 million and covers the equity and other shareholder claims that Sasol holds in CTRG. This will be subject to any relevant closing adjustments, including those in relation to working capital.
This transaction is part of the Company's ongoing, strategy aligned, asset divestment programme. Sasol remains fully committed to upstream operations in Mozambique, which continue to be integral to Sasol's strategy.
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, Investor Relations Officer
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/sol-sasol---divestment-of-full-shareholding-in-central-termica-de-ressano-garcia-sa-ctrg-301196561.html
SOURCE Sasol Limited
Article Date
12/21/2020Successful Completion of the Divestment of Sasol's 50% Interest in the Lake Charles Chemical Project Base Chemicals Business; Covenant Amendment for 31 December 2020 and Sasol Investor Update
Source: PR Newswire
JOHANNESBURG, Dec. 2, 2020 /PRNewswire/ -- Sasol shareholders are referred to the Company's Stock Exchange News Service ("SENS") announcement dated 2 October 2020, containing details of the divestment of a 50% interest in Sasol's Base Chemicals business at Lake Charles to LyondellBasell ("Transaction"). A further SENS announcement was released by the Company on 23 November 2020 confirming the approval of the Transaction by shareholders at Sasol's general meeting held on 20 November 2020.
Sasol is pleased to announce that the Transaction successfully closed on 1 December 2020 and the 50/50 Louisiana Integrated Polyethylene joint venture ("JV") with LyondellBasell has now been established.
The proceeds of approximately US$2 billion will be received within 2 days of closing, with standard closing adjustments to be effected 30 days thereafter.
Under the terms of the Transaction agreements, LyondellBasell will operate the JV assets on behalf of the JV and market the polyethylene products on behalf of the two shareholders.
Covenant amendment
Sasol is also pleased to announce the successful conclusion of discussions with our lenders regarding the covenant amendment for 31 December 2020, which is 4x net debt: earnings before interest, taxation, depreciation and amortisation (EBITDA). Our lenders have agreed that the covenant calculation will not be impacted by once off events or delayed receipt of disposal proceeds that are expected by 31 December.
The covenant for June 2021 will remain at 3x Net Debt: EBITDA.
Investor update
Sasol will host a virtual investor update, today, 2 December 2020 at 14:00 (SA time). The key focus will be the Sasol 2.0 transformation programme which is designed to deliver the Company's vision for Future Sasol.
Chief Executive Officer, Fleetwood Grobler, Chief Financial Officer, Paul Victor, and Executive Vice President Sasol 2.0 Transformation Marius Brand will host the event via webcast link: https://www.corpcam.com/Sasol02122020. The presentation will be available on the website www.sasol.com
For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, Investor Relations Officer
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:SOURCE Sasol Limited
Article Date
12/2/202011/24/2020 - Divestment by Sasol Chemicals North America LLC of its 50% Equity Interest in Gemini HDPE LLC
Divestment by Sasol Chemicals North America LLC of its 50% Equity Interest in Gemini HDPE LLC
Source: PR Newswire
JOHANNESBURG, Nov. 24, 2020 /PRNewswire/ -- The board of directors of Sasol is pleased to announce that Sasol Chemicals North America LLC ("SCNA"), a wholly owned subsidiary of Sasol, has agreed principle terms with INEOS Gemini HDPE Holding Company LLC ("INEOS") and a new entity to be formed by INEOS ("Newco") to sell its 50% membership interest in Gemini HDPE LLC ("Gemini"") to Newco (the "Sale") for USD404 million (subject to adjustment for cash, debt, working capital and other items). Gemini produces and sells bimodal high-density polyethylene based in La Porte, Texas, United States of America.
The Sale represents a further step in achieving Sasol's strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt. Proceeds from the transaction will be used by Sasol to repay near-term debt obligations.
Concurrent with the closing, the Company will have completed the restructuring of its existing debt facilities and the security package in respect thereof, resulting in Sasol and its subsidiaries being released from any existing security being provided in relation to Gemini (the "Refinancing").
The representations and warranties being given by SCNA are general corporate representations and warranties.
As disclosed in the Sasol financial statements, prepared in accordance with IFRS and audited by the Company's auditors, PricewaterhouseCoopers Inc., the value of the net assets relevant to the sale is USD 176 million (approximately R3 billion) as at 30 June 2020, which is net of the debt facilities associated with the interest. The loss attributable to the net assets was USD 18 million (approximately R290 million) for the year ended 30 June 2020.
The Sale between SCNA, INEOS and Newco will only be effective upon restructuring of the existing debt facilities and the Company's security package in respect thereof. Closing is anticipated to occur by 31 December 2020.
The Sale is classified as a Category 2 transaction in terms of the Listing Requirements of the JSE.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/divestment-by-sasol-chemicals-north-america-llc-of-its-50-equity-interest-in-gemini-hdpe-llc-301179428.html
SOURCE Sasol Limited
Article Date
11/24/2020Sasol announces beneficial operation of Louisiana low-density polyethylene (LDPE) unit
Source: PR Newswire
LAKE CHARLES, La., Nov. 16, 2020 /PRNewswire/ -- Sasol today announced our LDPE unit reached beneficial operation on 15 November 2020. The LDPE unit is the seventh and final Lake Charles Chemicals Complex unit to come online. The LCCP is now 100 percent complete with total capital expenditure forecast to be within the previously communicated guidance of US$12,8 billion.
"This milestone safely brings our Lake Charles Chemicals Project to a close and sets the stage for the next step in the evolution of our chemicals business," said Sasol President and Chief Executive Officer Fleetwood Grobler. "The completion of this unit and its impending transition to our joint venture with LyondellBasell will accelerate our transformation to a more specialty chemicals-focused company with a strong presence of base chemicals in our portfolio."
Sasol's LDPE unit uses ExxonMobil technology and has a nameplate capacity of 420,000 tons per year (420 ktpa). LDPE is used to manufacture plastic bags, shrink wrap and stretch film, coatings for paper cups and cartons, container lids, squeezable bottles, and other applications. The beneficial operation of the final LCCP unit signals that 100% of total nameplate capacity of the LCCP is operational.
The LDPE unit is one of the three LCCP plants that will form part of the Sasol/LyondellBasell Louisiana Integrated Polyethylene joint venture.
To date, Sasol's Lake Charles Chemicals Project has generated more than 800 full-time quality manufacturing jobs, with up to 6,500 people on site during construction, US$4 billion to Louisiana businesses and nearly US$200 million in local and state taxes.
Issued by:
Matebello Motloung, Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 83 773 9457
matebello.motloung@sasol.com
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600 9605
alex.anderson@sasol.com
In the U.S.:
Issued by:
Sarah Hughes, Manager Lake Charles Corporate Affairs
Direct telephone: +1 (346) 313-6151
sarah.hughes@us.sasol.com
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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 25 August 2020 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.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude: mmboe – million barrels oil equivalent.
All references to years refer to the financial year ended 30 June.
Any reference to a calendar year is prefaced by the word "calendar".
Comprehensive additional information is available on our website:
About Sasol:
Sasol is a global integrated chemicals and energy company spanning 30 countries. Through our talented people, we use selected technologies to safely and sustainably source, manufacture and market chemical and energy products globally.
About Sasol's Information Privacy Policy:
We wish to inform you about the processing of your Personal Information by Sasol South Africa Limited and your rights under applicable data protection law, as interpreted and included in Sasol Information Privacy Policy.
Within our company, only Sasol Group Media Relations will receive your Personal Information to fulfil the purpose of maintaining the relationship with the receiver in his/her capacity as a member of the media. You have the right to request for the correction or deletion of your Personal Information stored by us at address: Sasol Place, 50 Katherine Street, Sandton in Johannesburg. You also have a right to restrict the processing of your Information. To exercise your privacy rights or find out more about Information Privacy Policy, kindly contact our Privacy Office on: privacy@sasol.com
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SOURCE Sasol Limited
Article Date
11/16/2020Sasol to Host an Investor Update on 2 December 2020
Source: PR Newswire
JOHANNESBURG, Nov. 9, 2020 /PRNewswire/ -- Sasol will be hosting a virtual investor update, followed by Q&A on Wednesday, 2 December 2020. The key focus of the update will be our vision for Future Sasol and the pathway to delivery.
Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul Victor, will host the event via webcast link: https://www.corpcam.com/Sasol02122020 at 14:00 (SA time). The presentation will be available on the day of the event on our website www.sasol.com.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/sasol-to-host-an-investor-update-on-2-december-2020-301168561.html
SOURCE Sasol Limited
Article Date
11/9/2020Lake Charles Chemicals Complex (LCCC) Status Update, Production And Sales Metrics For The Three Months Ended 30 September 2020
Source: PR Newswire
JOHANNESBURG, Oct. 22, 2020 /PRNewswire/ -- On 27 August 2020, Hurricane Laura made landfall near Sasol´s Lake Charles Chemicals Complex (including Lake Charles Chemicals Project) in Southwest Louisiana. Sasol was making significant progress towards a restart of the LCCC facilities, which had to be suspended as a precautionary measure due to Hurricane Delta. Hurricane Delta made landfall on 9 October 2020.
Preliminary assessments indicated no further damage caused by Hurricane Delta, and we are also pleased to report that our employees have safely resumed their duties. The availability of sufficient industrial-level power from the local provider has resulted in the commencement of a coordinated startup of the complex. The impact of Hurricane Laura on the total net saleable tons of our North American Operations was approximately 170 kilotons in quarter one of financial year 2021.
Seven chemical manufacturing units have returned to operation and all remaining units which were operating prior to Hurricane Laura are expected to return to operation by end October 2020. Commissioning activities of our Low Density Polyethylene unit have resumed, and beneficial operation is still trending towards end October 2020.
Sasol will continue to support its employees and the local community impacted by the hurricanes with relevant resources and assistance.
PRODUCTION AND SALES METRICS FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2020
Sasol has published its production and sales performance metrics for the three months ended 30 September 2020, on the Company´s website at www.sasol.com, under the Investor Centre section or via this URL: https://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
A business outlook for Sasol North America is also provided in the Business Performance Metrics report.
INVESTOR CONFERENCE CALL
Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul Victor, will host a conference call via webcast (https://www.corpcam.com/Sasol22102020 ) at 15:30 (SA time) on 22 October 2020.
For further information, please contact:
Sasol Investor Relations
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/lake-charles-chemicals-complex-lccc-status-update-production-and-sales-metrics-for-the-three-months-ended-30-september-2020-301157693.html
SOURCE Sasol Limited
Article Date
10/22/20209/21/2020 - Sasol Lake Charles Chemical Complex update
Sasol Lake Charles Chemical Complex update
Source: PR Newswire
JOHANNESBURG, Sept. 21, 2020 /PRNewswire/ -- Hurricane Laura made landfall on 27 August 2020 near Sasol's Lake Charles Chemical Complex in Southwest Louisiana, and is one of the strongest hurricanes on record to hit the United States. Significant property and utility infrastructure damage has been experienced across the region.
Sasol's more than 800 Lake Charles employees are safe; however, hundreds of employees have suffered significant damage to their homes and remain in temporary housing while utility restoration and repair work is in progress. Sasol is assisting employees with home preservation, essential supplies and financial aid. In addition Sasol is supporting the local authorities, utility partners and citizen groups in community and infrastructure recovery efforts.
Sasol has completed damage assessments of the complex's 14 manufacturing facilities and associated utilities and infrastructure. While there was moderate wind damage to cooling towers and some insulation and building damage, there is no apparent damage to major process equipment, utilities or infrastructure. This will need to be confirmed once site electrical power is completely restored and all systems are tested.
Removal of debris, repair work and startup planning continue on the site. Regular employee work shifts have resumed, and several hundred contractors are working on site to expedite readiness for startup.
The critical path for operational restart is the re-establishment of reliable external electrical power service from Entergy, the regional power provider. The Sasol Lake Charles site is currently partially energized. Entergy expects full load service, industrial-level reliability power, to be available to Sasol and other industrial customers in the area by early-to-mid October.
Some site utility systems are currently online, with startup of the remaining utilities planned before reliable power is enabled. Once Entergy declares reliable, full load power is restored, Sasol will activate a coordinated startup of the site's two ethane crackers, and derivative units.
The low-density polyethylene unit, the last of the Lake Charles Chemicals Project units to come online, did not experience any significant storm impacts and commissioning activities have resumed. The unit's beneficial operation sequence will be initiated once the site is fully energized.
Sasol has Atlantic Named Wind Storm (ANWS) insurance coverage for units under construction as well as operating units.
Sasol's progress toward securing a partner in its U.S. Base Chemicals business is far advanced, and was not impacted by Hurricane Laura.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
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SOURCE Sasol Limited
Article Date
9/21/20209/10/2020 - SOL: Sasol Limited- Disposal Of Air Separation Units Business By Sasol South Africa Limited
SOL: Sasol Limited- Disposal Of Air Separation Units Business By Sasol South Africa Limited
Source: PR Newswire
JOHANNESBURG, Sept. 10, 2020 /PRNewswire/ -- Sasol refers its shareholders to the Stock Exchange News Service announcement of 29 July 2020, which informed the market that Sasol South Africa Limited ("SSA"), a major subsidiary of Sasol, had signed an exclusive negotiation agreement with Air Liquide Large Industries South Africa Proprietary Limited ("Air Liquide") for the sale of SSA's sixteen air separations units and associated business located in Secunda.
Sasol is pleased to announce that negotiations with Air Liquide have been concluded and a sale of business agreement (the "Sale Agreement") has been entered into, under which SSA shall dispose of its air separation business located in Secunda, ("the Business") to Air Liquide ("the Transaction") subject to the suspensive conditions outlined below.
Air Liquide is a world leader in gases, technologies and related services, and operates in 80 countries with approximately 67 000 employees. Air Liquide has provided technical and engineering support to Sasol in Secunda since 1979.
Description of the Business
The Business comprises the sixteen air separation units ("ASUs"), and related assets with a combined capacity of up to 42 000 tons of oxygen per day, that provide oxygen for Sasol's fuels and chemical production processes in Secunda. The ASUs produce various other gases utilised at Secunda, and rare gases sold externally. Employees related to the Business will transfer to Air Liquide as part of the arrangement.
Subsequent to the Transaction, Air Liquide will supply various gases to SSA's operations under a long-term gas supply agreement ("Gas Supply Agreement") with an initial term of 15 years. It is anticipated that Air Liquide's expertise would allow, in coordination with Sasol, a targeted reduction in greenhouse gas (GHG) emissions associated with oxygen production over time.
In addition to the Sale Agreement and the Gas Supply Agreement, SSA and Air Liquide ("the Parties") have also concluded various ancillary service, lease and like agreements (collectively "the Transaction Documents"). This includes an agreement for Sasol to sell key utilities to Air Liquide, to enable continuous gas production.
Rationale for the Transaction
This Transaction forms part of Sasol's expanded and accelerated divestment programme announced on 17 March 2020. Sasol has identified the operation of the ASUs and associated business by a third-party expert as an opportunity to deliver upfront cash proceeds whilst also contributing to Sasol's objectives of improved efficiency and decarbonisation at the Secunda site.
Air Liquide has significant expertise in operating industrial-scale ASUs worldwide and is expected to utilise this experience to deliver efficiency and reliability benefits for Sasol. Air Liquide will work closely with Sasol to continue to leverage Sasol's broad expertise in site operations and optimally managing the integrated value chain. As Air Liquide already owns the seventeenth ASU on the Secunda site, it is expected that ownership and operations of the full air separation fleet will provide further gains in operational efficiency. Improvements will be driven by a variety of factors including advanced application of technology and technical ability, and potential future capital investments by Air Liquide. It is expected that these improvements will position the ASUs for more efficient operations under a rapidly evolving future environmental landscape. Air Liquide will collaborate with Sasol in the development of our overall sustainability roadmap at the Secunda site. We will provide more details on this roadmap in the coming months.
Air Liquide will take full ownership and overall responsibility for managing the ASUs, including all future capital and operating requirements, to maintain the agreed quantity and quality of gases supplied to Sasol.
Total estimated capital expenditure of R8 to 12 billion would have been spent by Sasol over the next 15 years. The ASUs require significant capital to sustain reliable operations, as well as improved efficiencies to enable decarbonisation. This includes an extensive restoration and sustenance program to ensure the ability to supply the site in the longer term.
Terms of the Transaction
a) Purchase Consideration
In terms of the Sale Agreement, the Parties have agreed that the purchase consideration payable by Air Liquide to SSA for the Business shall be an amount of approximately R8,5 billion (EUR148,75 million (to be settled in US Dollars at the closing of the Transaction), plus ZAR 5,525 billion). The total amount shall be settled in cash by Air Liquide following satisfaction of the suspensive conditions contained in the Sale Agreement.
b) Impact of Gas Supply Agreement (GSA)
The GSA will achieve common objectives of the parties through a long-term supply agreement. The GSA enables the benefits of securing reliable oxygen supply for the Secunda site into the longer term.
It is anticipated that the Transaction will result in additional cash outflow for Sasol of approximately R650 million to R 1,2 billion per annum in real terms, over the term of the agreement. This estimate is largely dependent on the energy efficiency benefits which are achieved over time. Furthermore, potential further upside exists through the joint execution of a GHG reduction roadmap.
c) Other Significant Terms
The Sale Agreement contains warranties and indemnities which are standard for a transaction of this nature as well as a typical material adverse change clause, which allows Air Liquide to terminate the Sale Agreement before closing in the event that certain defined material adverse changes occur before closing.
d) Suspensive conditions to the Transaction
The Disposal is subject, inter alia, to the following key suspensive conditions:
1.1. Approval by the Competition Authorities;
1.2. Provision by Sasol Limited of a guarantee in favour of Air Liquide, as security for SSA's obligations to Air Liquide under the Sale Agreement and selected obligations under the Gas Supply Agreement; and
1.3. to the extent applicable, approval by the South African Reserve Bank of the implementation of the Sale Agreement and the Transaction Documents
(collectively the "Suspensive Conditions").
e) Implementation and Effective Dates of the Transaction
The implementation and effective date of the Transaction shall fall ten business days after the date on which the Suspensive Conditions are fulfilled or waived, as the case may be, but will not be earlier than 1 December 2020.
Application of proceeds
The proceeds, net of associated tax obligations related to the Transaction, will be utilised within the Sasol Group to facilitate repayment of near-term debt obligations. Total tax obligations related to the Transaction are expected to be approximately R2,1 to R2,3 billion. The availability of the net proceeds for repayment of debt obligations will depend on the final tax position of SSA.
Net asset value and profits attributable to the net assets of the Business
The value of the net assets of the Business was R5,6 billion at 30 June 2020. As Sasol currently operates the ASUs internally, the only revenues which were made in relation to the Business, related to external sales of rare gases (less than R100 million revenue per year).
Categorisation of the Transaction
The Transaction is classified as a Category 2 transaction in terms of the Listing Requirements issued by the JSE Limited ("JSE Listings Requirements") and accordingly does not require approval by the shareholders of Sasol.
Cautionary
This announcement does not serve to withdraw the cautionary announcement by the Company on 17 August 2020 and shareholders of Sasol should accordingly continue to exercise caution when dealing in the Company's securities.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740 |
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited--disposal-of-air-separation-units-business-by-sasol-south-africa-limited-301127142.html
SOURCE Sasol Limited
Article Date
9/10/2020Sasol invites interested parties to partner for the development of CO2 utilisation technologies at its SA operations
Source: PR Newswire
JOHANNESBURG, Sept. 4, 2020 /PRNewswire/ -- Sasol is committed to reducing its overall impact on the environment and is developing and implementing on our climate change mitigation response to enable long-term resilience of the company through an updated strategy, Future Sasol and lower-carbon business operations. We are currently exploring different initiatives and projects with the intent of enabling technology development deployment to achieve large-scale greenhouse gas (GHG) reductions. Carbon dioxide (CO2) utilisation has been identified as a promising lever to reduce GHG emissions globally and has the potential to increase the implementation of carbon capture and utilisation technologies.
To progress our climate change ambitions for more resilient operations in South Africa, Sasol is inviting interested parties to participate in a Request for Information (RFI) process regarding the development and demonstration of CO2 utilisation technologies. Sasol aims to be an enabler for the development and demonstration of CO2 utilisation technologies and wants to partner with other companies to reduce GHG emissions at its South African operations based in Secunda, Mpumalanga and in Sasolburg, Free State. The closing date for submissions is 30 September 2020.
The purpose of this RFI process is to identify partners who are interested or involved in the use of CO2 utilisation technologies on CO2-rich streams. The scale of application for potential projects can range from demonstration level to commercial level.
Interested parties may apply for access to the RFI by forwarding their company profile together with contact details to: CO2utilisation@sasol.com.
Issued by:
Matebello Motloung, Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 83 773 9457
matebello.motloung@sasol.com
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600 9605
alex.anderson@sasol.com
About Sasol:
Sasol is a global integrated chemicals and energy company spanning 30 countries. Through our talented people, we use selected technologies to safely and sustainably source, manufacture and market chemical and energy products globally.
About Sasol's Information Privacy Policy:
We wish to inform you about the processing of your Personal Information by Sasol South Africa Limited and your rights under applicable data protection law, as interpreted and included in Sasol Information Privacy Policy.
Within our company, only Sasol Group Media Relations will receive your Personal Information to fulfil the purpose of maintaining the relationship with the receiver in his/her capacity as a member of the media. You have the right to request for the correction or deletion of your Personal Information stored by us at address: Sasol Place, 50 Katherine Street, Sandton in Johannesburg. You also have a right to restrict the processing of your Information. To exercise your privacy rights or find out more about Information Privacy Policy, kindly contact our Privacy Office on: privacy@sasol.com
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SOURCE Sasol Limited
Article Date
9/4/2020Statement On Sasol's Lake Charles Chemicals Complex
Source: PR Newswire
JOHANNESBURG, Aug. 31, 2020 /PRNewswire/ -- On 27 August 2020, Hurricane Laura made landfall near Sasol's Lake Charles Chemicals Complex in Southwest Louisiana.
Sasol activated its inclement weather protocols ahead of the storm at all affected Gulf Coast locations in preparation for Hurricane Laura, with the primary concern being the safety of our workforce, the protection of the environment and the integrity of our facilities. Part of the response was to temporarily shut down facilities at Lake Charles, Louisiana, as well as Greens Bayou and Winnie, Texas.
Sasol is supporting its employees in the impacted areas, assisting with temporary housing, transportation and basic amenities for those affected by the storm.
The storm resulted in widespread electrical blackouts and other damage, preventing Sasol from operating most utility systems. High voltage transmission line corridors into the Lake Charles area are damaged, and the full assessment is still in progress by a local power company. Sasol's manufacturing facilities in Lake Charles remain shut down.
Operations recovery crews at the Lake Charles site have started the damage assessment process, and early reports indicate no apparent damage to process equipment and no flooding damage experienced as a result of storm surge. The high wind speeds caused damage to the cooling towers at the Lake Charles Chemicals Complex.
Other Sasol manufacturing operations in the United States in Greens Bayou and Winnie, Texas, were not impacted by the storm.
Start-up of the plants will depend on the availability of electricity, industrial gases, other feedstocks and the restoration process. We are engaging with our customers and suppliers regularly regarding the impacts on production.
Sasol has Atlantic Named Wind Storm (ANWS) insurance coverage for units under construction as well as operating units.
Sasol will update the market as more certainty on the situation in Lake Charles is obtained. We do not envisage that the hurricane will have an adverse impact on any potential divestment transaction related to Sasol's base chemical portfolio in the United States.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 24 August 2020 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.
View original content:http://www.prnewswire.com/news-releases/statement-on-sasols-lake-charles-chemicals-complex-301120970.html
SOURCE Sasol Limited
Article Date
8/31/2020SOL: Sasol Limited: Audited financial results for the year ended 30 June 2020
Source: PR Newswire
JOHANNESBURG, Aug. 17, 2020 /PRNewswire/ -- Earnings performance
Sasol delivered a satisfactory set of business results for the first half of the year, driven by oil prices averaging US$62,62/bbl and a solid production performance. During the second half of the year our earnings was severely impacted by the sudden collapse in oil prices and the economic consequences of the COVID-19 pandemic.
The combined effects of unprecedented low oil prices, destruction of demand for products and impairments of R111,6 billion resulted in a loss of R91,3 billion for the year compared to earnings of R6,1 billion in the prior year. Within a volatile and uncertain macroeconomic environment, our foundation businesses still delivered resilient results with a strong volume, cash fixed cost and working capital performance.
The 18% decrease in the rand per barrel price of Brent crude oil coupled with much softer global chemical and refining margins negatively impacted our realised gross margins especially during the second half of the year.
The LCCP delivered an improved earnings before interest, taxation, depreciation and amortisation(EBITDA) performance in the second half of the year of approximately R100 million (US$8 million), despite a very challenging macroeconomic environment. This compares to a loss before interest, taxation, depreciation and amortisation (LBITDA) of R1,1 billion (US$70 million) recorded in the first half of the year.
Earnings were further impacted by R3,9 billion in additional depreciation charges and approximately R6,0 billion in finance charges for the year as the LCCP units reached beneficial operation.
Our Energy business's gross margin percentage decreased from 43% in the prior year to 38% due to the significant impacts of supply and demand shocks that led to lower crude oil prices and product differentials. We expect that oil prices will remain low for the next 12 to 18 months as the impact of COVID-19 becomes better understood. Oil markets also continued to remain exposed to shifts in geopolitical risks as well as supply and demand movements.
Despite experiencing softer commodity chemical prices across most of our sales regions due to weaker global demand and increased global capacity, our Base Chemicals and Performance Chemicals businesses, including LCCP, reported increased sales volumes of 19% and 8% respectively, and maintained robust results on certain products, ensuring a level of resilience in our cash flows.
Total cash fixed costs for the first half of the year were trending above 10% compared to the prior period, however, in the second half, we significantly improved our total cash fixed cost performance resulting in the full year cost remaining flat when compared to the prior year. This was largely attributable to the implementation of our comprehensive response plan focusing on cash fixed cost reduction and enhanced cash flow.
As a result our key metrics were impacted as follows:
- Working capital managed to optimal levels achieving an additional benefit of R9,2 billion relative to our internal plans. This resulted in a historical low working capital ratio of 12,5% compared to 14,8% for the prior year. Investment in working capital decreased by R5,8 billion during the year;
- Capital expenditure optimised by approximately R6,0 billion by deferring certain expenditure without compromising on safety and the reliability of our operations;
- Loss before interest and tax (LBIT) of R111,0 billion compared to earnings before interest and tax (EBIT) of R9,7 billion in the prior year;
- Adjusted EBITDA(1) declined by 27% from R47,6 billion in the prior year to R35,0 billion;
- Basic earnings per share (EPS) decreased to a R147,45 loss per share compared to earnings per share of R6,97 in the prior year;
- Headline earnings per share (HEPS) decreased by more than 100% to a R11,79 loss per share compared to the prior year; and
- Core headline earnings per share(2) (CHEPS) decreased by 61% to R14,79 compared to the prior year.
Key metrics | 2020 | 2019 | Change % |
(LBIT)/EBIT (R million) | (111 030) | 9 697 | (more than 100) |
Adjusted EBITDA1 (R million) | 34 976 | 47 637 | (27) |
Headline (loss)/earnings (R million) | (7 285) | 18 941 | (more than 100) |
Basic (loss)/earnings per share (Rand) | (147,45) | 6,97 | (more than 100) |
Headline (loss)/earnings per share (Rand) | (11,79) | 30,72 | (more than 100) |
Core headline earnings per share(2) (Rand) | 14,79 | 37,65 | (61) |
Dividend per share (Rand) | |||
- Interim (Rand) | 0,0 | 5,90 | (100) |
- Final (Rand) | 0,0 | 0,0 | 0 |
(1) Adjusted EBITDA is calculated by adjusting EBIT for depreciation and amortisation, share- based payments, remeasurement items, movement in environmental provisions due to discount rate changes, unrealised net losses/(gains) on all derivatives and hedging activities and unrealised translation losses arising on the translation of monetary assets and liabilities into functional currency. We believe Adjusted EBITDA and Core HEPS as noted below, are useful measures of the Group's underlying cash flow performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. (Adjusted EBITDA constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation and pro forma financial information as set out in the full set of audited summarised financial statements.)
(2) Core HEPS is calculated by adjusting headline earnings per share with certain once-off items(provision for tax litigation matters and LCCP cash fixed cost with limited corresponding gross margin), year-end close adjustments and depreciation and amortisation of capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, and share-based payments on implementation of B-BBEE transactions. Year-end close adjustments include unrealised net losses/(gains) on all derivatives and hedging activities and unrealized translation losses arising on the translation of monetary assets and liabilities into functional currency in order to remove volatility from earnings from year to year. (Core HEPS constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation and pro forma financial information as set out in the full set of audited summarised financial statements.)
Net asset value | 2020 | 2019 | Change % |
Total assets (R million) | 479 162 | 469 968 | 2 |
Total liabilities (R million) | 319 914 | 244 173 | 31 |
Total equity (R million) | 159 248 | 225 795 | (29) |
Turnover (R million) | (LBIT)/EBIT (R million) | |||
2019 | 2020 | 2020 | 2019 | |
20 876 | 19 891 | Mining | 2 756 | 4 701 |
5 184 | 5 204 | Exploration and Production | 1 197 | (889) |
International | ||||
83 803 | 67 901 | Energy | (6 678) | 16 566 |
48 813 | 52 683 | Base Chemicals | (70 804) | (1 431) |
68 296 | 69 197 | Performance Chemicals | (24 455) | (7 040) |
78 | 30 | Group Functions | (13 046) | (2 210) |
227 050 | 214 906 | Group performance | (111 030) | 9 697 |
(23 474) | (24 539) | Intersegmental turnover | ||
203 576 | 190 367 | External turnover | ||
Balance sheet management
Cash generated by operating activities decreased by 18% to R42,4 billion compared to the prior year. This was largely due to the softer macroeconomic environment during the first six months of the year which was further impacted by the severe economic consequences from the COVID-19 pandemic and lower oil prices during the second half of the year, coupled with the LCCP still being in a ramp-up phase. The decrease was partially negated by another strong working capital and cost performance from the foundation business. Investment in working capital decreased by R5,8 billion during the year due to focused management actions, resulting in a working capital ratio of 12,5%.
To create flexibility in Sasol's balance sheet during our peak gearing period, we have successfully engaged with our lenders to waive our covenants as at 30 June 2020 and to lift our covenants from 3,0 times to 4,0 times of Net debt: EBITDA (bank definition) as at 31 December 2020. This provides additional flexibility, which is subject to conditions, consistent with our capital allocation framework, prioritising debt reduction through commitments to suspend dividend payments and acquisitions while our leverage is above 3,0 times Net debt: EBITDA. We will also reduce the size of our facilities as debt levels reduce. Our Net debt: EBITDA ratio at 30 June 2020, based on the revolving credit facility and US dollar term loan covenant definition, was 4,3 times. The weaker Rand/US$ dollar exchange rate at 30 June 2020 impacted Net debt: EBITDA by 0,6 times.
During the year we secured incremental US dollar liquidity through a US$1 billion syndicated loan facility for up to 18 months, and bilateral facilities (with a combined quantum of US$250 million) with a tenure of two years. These facilities enhance our US dollar liquidity position during the peak gearing phase as the LCCP ramps up. In the South African market, we have both bank loan facilities and an R8,0 billion Domestic Medium-Term Note Programme (DMTN) which was established in 2017. In August 2019, we issued our inaugural paper to the value of R2,2 billion in the local debt market under this DMTN programme.
As at 30 June 2020, our total debt was R189,7 billion compared to R130,9 billion as at 30 June 2019, with approximately R174,6 billion (US$10,1 billion) denominated in US dollar. Our balance sheet is highly geared, requiring a reduction in US dollar denominated debt in order to achieve a targeted Net debt:
EBITDA of less than 2,0 times and gearing of 30%, which we believe would be sustainable with oil at approximately US$45 per barrel (in real terms). Through our comprehensive response plan we have taken immediate steps to reset our capital structure by targeting to generate at least US$6 billion by the end of 2021.
Our gearing increased from 56,3% at 30 June 2019 to 114,5% mainly due to remeasurement items (39%) recognised, a weaker closing Rand/US dollar exchange rate (6%) and the adoption of the IFRS 16 'Leases' accounting standard (4%). Deleveraging the balance sheet is one of our highest priorities to ensure business sustainability to position us for the future to deliver value to our stakeholders.
Consistent with our long-term commitment to return to an investment grade credit rating, we are engaging with ratings agencies regarding the progress on our comprehensive response plan.
As at 30 June 2020, our liquidity headroom was in excess of US$2,5 billion well above our outlook to maintain liquidity in excess of US$1 billion, with available Rand and US dollar based funds improving as we advance our focused management actions. We continue to assess our mix of funding instruments to ensure that we have funding from a range of sources and a balanced maturity profile. We have no significant debt maturities before June 2021 when the US$1 billion syndicated loan becomes due. In accordance with IAS 1 'Presentation of Financial Statements', the recent conditions which underlie the covenant waiver requires an assessment of our debt maturity that resulted in a further US$1 billion being classified to short-term debt at 30 June 2020.
Our net cash on hand position increased from R15,8 billion as at 30 June 2019 to R34,1 billion mainly due to proceeds received from the US$1,0 billion syndicated loan as well as draw downs on the revolving credit facility negated by LCCP capital expenditure for the year.
Actual capital expenditure, including accruals, amounted to R35 billion. This includes R14 billion (US$0,9 billion) relating to the LCCP and is in line with our internal targets.
In line with our financial risk management framework, we continue to make good progress with hedging our currency and ethane exposure. For further details of our open hedge positions we refer you to our
Analyst Book (www.sasol.com).
Further cautionary announcement
Shareholders of Sasol (Shareholders) are referred to various cautionary announcements regarding the expanded and accelerated asset disposal programme and the rights issue, the last announcement released on the Stock Exchange News Service on 28 July 2020. Accordingly, Shareholders are advised to continue exercising caution when dealing in the Company's securities until full terms announcements on the disposal of the air separation units, the US Base Chemicals partnering process and the rights issue are published.
Dividend
Dividend payments are an important part in our capital allocation framework. However, given our current financial leverage and the risk of a prolonged period of economic uncertainty, the Board believes that it would be prudent to continue with the suspension of dividends. This will allow us to continue to protect our liquidity in the short-term and focus on reducing leverage in order to create a firm platform to execute our strategy and drive long-term shareholder returns. In addition, in accordance with the covenant amendment agreement with lenders, we will not be in a position to declare a dividend for as long as Net debt: EBITDA is above 3,0 times. We expect the balance sheet to regain flexibility following the implementation of our comprehensive response plan.
Update on the Lake Charles Chemicals Project (LCCP)
Ongoing focus as we ramp up all units to beneficial operation
At the LCCP, we maintain our focus on safely improving productivity and bringing all the units to beneficial operation. The LCCP continued with its exceptional safety record with a recordable case rate (RCR) of 0,11.
After the ethoxylates (ETO) expansion achieved beneficial operation in January 2020, the alcohol expansion and the alumina expansion, as well as the new Guerbet unit, achieved beneficial operation in June 2020. As a result, 100% of the LCCP's Specialty Chemicals units are online, and 86% of total nameplate capacity of the LCCP is operational.
The last remaining unit to come online will be the low density polyethylene (LDPE) unit, which was damaged during a fire in January 2020. The unit is expected to achieve beneficial operation before the end of October 2020. Some challenges in restoring the unit have resulted in a slight delay to the previous market guidance of the end of September 2020. During the time of the delay in the LDPE unit start-up, the ethylene produced by the cracker and destined for the unit is being sold to third parties. As a result, projected earnings for the LCCP complex in this financial year will be impacted only by the loss in the margin of ethylene to LDPE. In addition, the insurance claims process is underway, and the first insurance proceeds have been received.
The overall LCCP cost estimate is tracking US$12,8 billion as per our previous guidance. The new ethane cracker produced at an average rate of above 80% of nameplate capacity during the fourth quarter of the year.
COVID-19 had a limited impact on the LCCP construction and commissioning activities during the fourth quarter of the year, and mitigation plans are in place to minimise potential impacts going forward. The close-out and demobilisation of the LCCP is progressing according to plan with the remainder of the work limited to the removal of scaffolding. Site demobilisation of construction equipment, infrastructure and services will be completed after the last unit achieves beneficial operation. The people on site have reduced to less than 400 and follows the demobilisation plan. This includes the LDPE restoration resources.
Board activities
The following change to the Board of the Company occurred after the publication of the Company's Interim Financial Results on 21 February 2020:
- Ms KC Harper was appointed as Independent Director with effect from 1 April 2020.
Short-form statement
This announcement is the responsibility of the Directors. The information in this short-form announcement, including the financial information on which the outlook is based, has not been audited and reported on by Sasol Limited's external auditors. Financial figures in this announcement have been correctly extracted from the audited financial results. The external auditors expressed an unmodified audit opinion on the consolidated financial statements in their report dated 17 August 2020. That report also includes a section on material uncertainty related to going concern and the communication of key audit matters. It is only a summary of the information contained in the full announcement and does not contain full or complete details. Any investment decision should also take into consideration the information contained in the full announcement, published on SENS on 17 August 2020, via the JSE link.
The JSE link is as follows: https://senspdf.jse.co.za/documents/2020/JSE/ISSE/SOL/FY20Result.pdf
The full announcement and the FY20 audited financial results will be available on the Company's website at www.sasol.com.
Copies of the full announcement may also be requested from the office of the Chief Investor Relations Officer, investor.relations@sasol.com or +27 10 344 9280, alternatively collected from the Group's registered office (by appointment, observing COVID-19 restrictions), Sasol Place, 50 Katherine Street, Sandton, Johannesburg 2090 at no charge, weekdays during office hours.
Sasol will release its Annual Financial Results on Monday, 17 August 2020, for the year ended 30 June 2020. Given the prevalence of the COVID-19 pandemic, and the associated restrictions placed on public gatherings, Sasol has decided to pre-record its results presentation. Sasol's President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul Victor, will present the results.
The pre-recorded presentation will be available on 17 August 2020, at 08h00 (Central African time), on the following link: https://www.corpcam.com/Sasol17082020
A conference call will also be hosted via webcast at 15h00 (SA) with Fleetwood Grobler and Paul Victor to discuss the results and provide an update of the business. Please confirm your participation by registering online: https://www.corpcam.com/Sasol17August2020
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82-557-7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
Please note: One billion is defined as one thousand million, bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year ended 30 June. Any reference to a calendar year is prefaced by the word "calendar".
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SOURCE Sasol Limited
Article Date
8/17/2020SOL: Sasol Lmited - Trading Statement for the Financial Year Ended 30 June 2020
Source: PR Newswire
JOHANNESBURG, Aug. 11, 2020 /PRNewswire/ -- Sasol will announce group financial results for the year ended 30 June 2020 (2020 financial year) that were impacted by the COVID-19 pandemic and a severe decline in crude oil and chemical product prices. The impact of the weak macro-economic environment was partly mitigated by a strong cash cost, working capital and capital expenditure performance.
Shareholders are advised that, for the 2020 financial year:
Sasol's adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA*) is expected to decline by between 17% and 37% from R47,6 billion in the prior year, to between R30,0 billion and R39,5 billion. This results from a 18% decrease in the rand per barrel price of Brent crude oil coupled with much softer global chemical and refining margins impacting our gross margins adversely, especially during the second half of the 2020 financial year. The cash fixed cost performance for the second half of the year improved markedly, partly offsetting the impact of lower gross margins.
The loss per share was as a result of the decrease in the adjusted EBITDA as well as notable non-cash adjustments to earnings. The largest contributor relates to impairments of a number of cash generating units following the decline in the long-term macro-economic outlook, and the fair value impact following the commencement of partnering discussions for our Base Chemicals assets in the United States. Aggregate pre-tax impairment charges of approximately R112 billion have been recognised in the 2020 financial year. The impairments and fair value adjustments have impacted the reporting segments as follows:
Other non-cash adjustments include:
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors.
Sasol will release its Annual Financial Results on Monday, 17 August 2020, for the year ended 30 June 2020. Given the prevalence of the COVID-19 pandemic, and the associated restrictions placed on public gatherings, Sasol has decided to pre-record its results presentation. Sasol's President and Chief Executive Officer, Fleetwood Grobler, and Chief Financial Officer, Paul Victor, will present the results. The pre-recorded presentation will be available on 17 August 2020 on the following link: https://www.corpcam.com/Sasol17082020.
A conference call will also be hosted via webcast at 15h00 (SA) with Fleetwood Grobler and Paul Victor to discuss the results and provide an update of the business. Please confirm your participation by registering online: https://www.corpcam.com/Sasol17August2020
* Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation, share-based payments, remeasurement items, change in discount rates of our rehabilitation provisions, all unrealised translation gains and losses, and all unrealised gains and losses on our derivatives and hedging activities.
** Core HEPS is calculated by adjusting headline earnings with non-recurring items, earnings losses of significant capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, all translation gains and losses (realised and unrealised), all gains and losses on our derivatives and hedging activities (realised and unrealised), and share-based payments on implementation of BBBEE transactions. Adjustments in relation to the valuation of our derivatives at period end are to remove volatility from earnings as these instruments are valued using forward curves and other market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of the group´s sustainable operating performance.
Adjusted EBITDA and Core HEPS are not defined terms under IFRS and may not be comparable with similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of the directors of Sasol. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Sasol´s financial position, changes in equity, results of operations or cash flows.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
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SOURCE Sasol Limited
Article Date
8/11/2020Disposal of Air Separation Units by Sasol South Africa Limited; Trading Statement Update and Further Cautionary Announcement
Source: PR Newswire
JOHANNESBURG, July 29, 2020 /PRNewswire/ -- Sasol is pleased to announce that Sasol South Africa Limited ("SSA"), a Major Subsidiary of Sasol, has signed an exclusive negotiation agreement with Air Liquide for the sale of its sixteen air separation units located in Secunda to Air Liquide Large Industries South Africa Proprietary Limited ("Air Liquide"). The proceeds will total approximately R8,5 billion.
The air separation units, which have a capacity of up to 42 000 tons per day, provide oxygen for Sasol's fuels and chemical production processes in Secunda as well as producing various other gases utilised at the site. Air Liquide will supply the gases to SSA's operations under a long-term gas supply agreement. It is anticipated that Air Liquide's expertise would allow, in coordination with Sasol, a targeted reduction in greenhouse gas emissions (GHG) associated with the oxygen production over the coming years, which will contribute towards the GHG reduction for the overall Secunda site.
Air Liquide has been present on the Secunda site since 1979, and already owns and operates the seventeenth air separation unit, which was commissioned in January 2018. Air Liquide owning and operating the full air separation fleet is expected to provide optimisation of management of the assets and energy efficiency benefits.
The transaction remains subject to further due diligence, finalisation of relevant definitive agreements and associated internal and external approvals, including the Competition Commission and the South African Reserve Bank. The parties aim to negotiate final agreements by mid-August, and a further announcement will be made at that time. The transaction is currently expected to close within financial year 2021.
This transaction forms part of Sasol's accelerated divestment programme as part of Sasol's comprehensive response plan announced on 17 March 2020.
RELEASE OF TRADING STATEMENT UPDATE
Our accelerated asset disposal programme is impacting the completion of our year-end processes. We anticipate the release of a trading statement update early in August 2020.
FURTHER CAUTIONARY ANNOUNCEMENT
Sasol refers to the SENS announcements released on the Stock Exchange News Service ("SENS") on 17 March 2020, outlining a comprehensive response strategy designed to mitigate the impact of a lower oil price and COVID-19. The strategy includes a cash conservation programme, an accelerated and expanded asset disposal programme, as well as a potential rights issue of up to US$2 billion which remains subject to the progress of other initiatives. A further SENS announcement was released on 1 July 2020, updating investors on the progress regarding the asset disposal programme.
Sasol shareholders are advised that implementation of the response strategy is underway, the outcome of which may have a material effect on the price of the Company's securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the Company's securities until full announcements on the disposal of the air separation units, the asset disposal programme and the potential rights issue are made.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27-(0)-82-557-7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
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SOURCE Sasol Limited
Article Date
7/29/2020SOL: Sasol Limited - Production and Sales Metrics for the Financial Year Ended 30 June 2020; COVID-19 Update and Lake Charles Chemicals Project (LCCP) Status
Source: PR Newswire
JOHANNESBURG, July 23, 2020 /PRNewswire/ -- Sasol has published its production and sales performance metrics including a hedging update for the year ended 30 June 2020, on the Company´s website at www.sasol.com, under the Investor Centre section or via this URL: https://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
Sasol is still in the process of completing its year-end processes and plans to issue an updated Trading Statement on or before 31 July 2020.
COVID-19 UPDATE
As of 22 July 2020, Sasol's total number of COVID-19 infections since the beginning of the pandemic is 774, with the majority of cases recorded in South Africa. There are 561 active cases and two COVID-19 related deaths which occurred in South Africa. The infected employees are receiving our full support. The increase in Sasol's infection rates is in line with the trend in South Africa. Up to now, there has been no material impact to our operations. The continuous increase in COVID-19 infections within Sasol could potentially impact our operations in the near-term. While we have implemented all regulatory requirements and have the necessary controls in place, we will continue to actively monitor and mitigate the impact.
LCCP STATUS
The last remaining LCCP unit to come online is the Low Density Polyethylene (LDPE) plant, which was damaged during a fire in January 2020. Repair work to the unit is ongoing and the unit is expected to achieve beneficial operation (BO) before the end of October 2020. Some challenges were experienced in the completion of the restoration process, resulting in a slight delay to the previous market guidance of a BO date before September 2020.
Overall project completion was at 99% and capital expenditure amounted to US$12,7bn.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
View original content:SOURCE Sasol Limited
Article Date
7/23/2020SOL: Sasol Limited - Progress With Asset Sales and Further Cautionary Announcement
Source: PR Newswire
JOHANNESBURG, July 1, 2020 /PRNewswire/ -- Sasol (NYSE: SSL) and Chevron have signed an agreement that will result in Sasol selling its indirect beneficial interest in the Escravos GTL (EGTL) plant in Nigeria to Chevron. The transaction will release Sasol from associated company guarantees and other obligations. Sasol will continue to support Chevron in the performance of the EGTL plant through ongoing catalyst supply, technology and technical support.
The transaction has an agreed economic effective date of 1 September 2019.
EXPLOSIVES JOINT VENTURE
In October 2019 Sasol announced its intention to form a new explosives partnership with Enaex S.A. Sasol has concluded the transaction to sell a 51% share in the business to Enaex, and on 1 July 2020, Enaex Africa in association with Sasol, will officially start operating in South Africa and on the African Continent.
These transactions form part of Sasol's accelerated divestment programme to streamline our portfolio by focusing on core assets, which will enable Sasol's repositioning over the following 24 months.
OTHER DIVESTMENTS
Divestment processes are well underway with respect to Sasol's equity interests in the Republic of Mozambique Pipeline Investment Company (Pty) Ltd (ROMPCO) pipeline and the Central Termica de Ressano Garcia (CTRG) gas-fired power plant in Mozambique, and partnering discussions in relation to the Base Chemicals assets in the USA are far advanced. Further updates on these and other disposals will be provided as and when appropriate.
FURTHER CAUTIONARY ANNOUNCEMENT
Sasol refers to the cautionary announcements released on the Stock Exchange News Service on 17 March 2020 and 31 March 2020, outlining a comprehensive response strategy designed to mitigate the impact of COVID-19 and a lower oil price. The strategy includes a cash conservation programme, an accelerated and expanded asset disposal programme, as well as a potential rights issue of up to US$2 billion which remains subject to the progress of other initiatives.
Sasol shareholders are advised that implementation of the response strategy is underway, the outcome of which may have a material effect on the price of the Company's securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the Company's securities until full announcements on the asset disposal programme and the potential rights issue are made.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
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SOURCE Sasol Limited
Article Date
7/1/20206/23/2020 - Sasol Announces Beneficial Operations of Fifth and Sixth Lake Charles Chemicals Project Facilities
Sasol Announces Beneficial Operations of Fifth and Sixth Lake Charles Chemicals Project Facilities
Source: PR Newswire
HOUSTON, June 23, 2020 /PRNewswire/ -- Sasol today announced that the Guerbet alcohol unit at our Lake Charles Chemicals Project (LCCP) achieved beneficial operations on 19 June 2020. This follows three days after achieving beneficial operations on the Ziegler alcohol unit, bringing the online capacity of LCCP's specialty chemicals units to 100 percent and LCCP's total online nameplate capacity to 86 percent.
The beneficial operations of these LCCP facilities progresses Sasol's seven-unit U.S. Gulf Coast mega project to the cusp of completion," said Sasol President and Chief Executive Officer, Fleetwood Grobler. "The additional capacity strengthens Sasol's leadership position in the specialty alcohol and alumina markets, which is core to the company's Chemicals growth strategy."
"Our investment in Lake Charles – including the additional ethoxylation capacity that began operation in January 2020 – combined with the startup of our new ethoxylation unit in Nanjing, China in 2019, strengthens our existing asset base," said Sasol Executive Vice President: Chemicals Business, Brad Griffith.
"With this expansive global footprint, we continue aligning our business with powerful global megatrends to identify high-value growth opportunities we can support with our unique chemistries. These megatrends underpin our strategy of providing solutions to a growing and urbanising middle class focused on health, hygiene and sustainability. Through collaborative innovation with our customers, we are committed to developing sustainable solutions which form a part of the developing circular economy," said Mr Griffith.
The Ziegler and Guerbet alcohols expand Sasol's position in having the broadest integrated alcohols and surfactants portfolio in the world. Sasol is a recognised leader in chemicals for essential care markets such as laundry, home care, personal care and hygiene.
Sasol is also well-positioned to offer specialty, performance-based chemicals and tailor-made solutions to customers in a wide range of industrial applications including agrochemicals, abrasives, metalworking and lubrication, oil and gas, automotive, and paints and coatings.
The LCCP Ziegler unit is an extension of the existing Ziegler plant in Lake Charles and is the largest of its kind in the world adding nameplate capacity of 173,000 tons per year (173 ktpa) of alcohol and 32,000 tons (32 ktpa) of alumina. This addition strengthens Sasol's significant economies of scale, leveraging the company's deep technical and operating experience.
The Ziegler unit supplements Sasol's global production of alcohols and aluminas, adding to existing Ziegler capacity in both Lake Charles and Brunsbuettel, Germany. The unit is the most technically complex of the units in the LCCP and is based on Sasol's proprietary technology. Benefited by the most modern technology and years of experience with this unique process, the Ziegler unit started up smoothly, within market guidance through the sterling efforts of our project and operations teams.
The additional alumina capacity from the Ziegler unit will enable Sasol to supply the increasing market demand for tailor-made, high purity alumina products used in a variety of market applications such as catalysts, films, ceramics and abrasives. The expansion will support the growth aspirations of customers requiring Sasol's unique alkoxide based alumina products.
Sasol's new Guerbet unit on the U.S. Gulf Coast is the company's second Guerbet alcohol production site; the other is also located in Brunsbuettel. The unit in Lake Charles is the largest Guerbet alcohol plant in the world and has a nameplate capacity of 30,000 tons per year (30 ktpa).
The Guerbet unit is a two-fold scale-up of Sasol's proprietary technology used in Brunsbuettel. The project and operations teams from both Lake Charles and Brunsbuettel worked exceedingly well to bring the Guerbet unit onstream without problems. The positioning of Sasol's Guerbet alcohol production sites in Europe and North America is unrivaled and provides our customers with expanded access to a more efficient and sustainable global supply chain.
The last remaining unit to come online at LCCP will be the low density polyethylene (LDPE) plant. This is on track for beneficial operations by the end of September 2020, as per previous guidance. At the end of May 2020, the LCCP capital expenditure was tracking the previously communicated guidance of US$12,8 billion.
To date, the LCCP has generated more than 800 full-time quality manufacturing jobs, with up to 6,500 people on site during construction, with nearly US$4 billion spend on construction to Louisiana businesses and nearly US$200 million paid in local and state taxes.
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrate sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.
Issued by:
In South Africa:
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27 (0) 10-344-6509; Mobile: +27 (0) 71-600-9605;
alex.anderson@sasol.com
In the U.S.:
Kim Cusimano, North American Operations Corporate Affairs
Direct telephone: +1 (225) 776-0758
kim.cusimano@us.sasol.com
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SOURCE Sasol Limited
Article Date
6/23/2020Sasol's Guerbet Unit at Lake Charles Achieves Beneficial Operation
Source: PR Newswire
JOHANNESBURG, June 23, 2020 /PRNewswire/ -- Sasol is pleased to announce that the Guerbet alcohols unit at the Lake Charles Chemicals Project ("LCCP") achieved beneficial operation on 19 June 2020. The new Guerbet unit is Sasol's second Guerbet alcohol production site, with the other located in Brunsbuettel, Germany. This means that 100 percent of LCCP's specialty chemicals units are now online, and that 86 percent of total nameplate capacity of LCCP is operational. The Guerbet unit is the sixth LCCP production unit to be brought into production, and has a nameplate capacity of 30 000 tons per year, using Sasol's proprietary technology.
The LCCP Ziegler unit, which achieved beneficial operation on 16 June 2020, is an extension of the existing Ziegler plant in Lake Charles and adds to existing Ziegler capacity from Brunsbuettel in Germany. It is the largest of its kind in the world, adding nameplate capacity of 173 000 tons per year of alcohol and 32 000 tons per year of alumina. The Ziegler unit is the most technically complex of the units in the LCCP and is also based on Sasol's proprietary technology.
The last remaining unit to come online at LCCP will be the low density polyethylene (LDPE) plant, which was damaged during a fire in January 2020. This is on track for beneficial operation by the end of September 2020, as per previous guidance. At the end of May 2020, the LCCP capital expenditure was tracking the previously communicated guidance of US$12,8 billion.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, the impact of the novel coronavirus (COVID-19) pandemic on Sasol's business, results of operations, financial condition and liquidity and statements regarding the effectiveness of any actions taken by Sasol to address or limit any impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing crude oil prices , volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27(0)82-557-7740
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasols-guerbet-unit-at-lake-charles-achieves-beneficial-operation-301081665.html
SOURCE Sasol Limited
Article Date
6/23/2020Sasol SENS Announcement: Cautionary and Trading Statement
Source: PR Newswire
JOHANNESBURG, May 22, 2020 /PRNewswire/ -- Sasol refers to the cautionary announcements released on the Stock Exchange News Service on 17 March 2020 and 31 March 2020, outlining a comprehensive response strategy designed to mitigate the impact of COVID-19 and a lower oil price. The strategy includes a cash conservation programme, an accelerated and expanded asset disposal and partnering programme, as well as a potential rights issue of up to US$2 billion, which remains subject to the progress of other initiatives.
Sasol shareholders are advised that implementation of the response strategy is underway, the outcome of which may have a material effect on the price of the Company's securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the Company's securities until full announcements on the asset disposal and partnering programme and the potential rights issue are made.
TRADING STATEMENT FOR THE FINANCIAL YEAR ENDING 30 JUNE 2020
Sasol shareholders are also advised that for the financial year ending 30 June 2020 (FY20) headline earnings per share (HEPS) are expected to decrease by at least 20%, compared to the HEPS of R30,72 reported for the year ended 30 June 2019 (the comparative period). Earnings per share (EPS) are also expected to decrease by at least 20%, compared to EPS of R6,97 reported for the comparative period.
Our FY20 results may be impacted further by adjustments resulting from the year-end closure process, which may result in a change in the estimated EPS and HEPS noted above. A comprehensive trading statement will be published as soon as there is more certainty with respect to the ranges of the decrease in HEPS and EPS.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sasol's audited FY20 results will be announced on Monday, 17 August 2020.
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-sens-announcement-cautionary-and-trading-statement-301064200.html
SOURCE Sasol Limited
Article Date
5/22/20204/23/2020 - SOL: Sasol Limited: Business Update, Production and Sales Metrics for the Nine Months Ended 31 March 2020
SOL: Sasol Limited: Business Update, Production and Sales Metrics for the Nine Months Ended 31 March 2020
Source: PR Newswire
JOHANNESBURG, April 23, 2020 /PRNewswire/ --
OPERATIONS SAFETY UPDATE
The safety and wellbeing of our employees and service providers remains our top priority. Sasol management is disheartened by the tragic fatality suffered by a service provider at our Secunda operations on 7 April 2020. An internal incident investigation, in collaboration with the service provider, is well underway to determine the root cause of this incident. The journey towards zero harm and eliminating fatalities remains an imperative for Sasol.
FURTHER UPDATE OF COVID-19 ON GLOBAL OPERATIONS
In relation to the COVID-19 impacts on employees and service providers, Sasol has implemented a range of measures and strict protocols to ensure that employees can continue to perform essential work safely. Detailed COVID-19 response plans are in place for all sites globally, with dedicated task teams closely monitoring and managing the situation in line with relevant local guidance. Fourteen Sasol employees have tested positive for COVID-19 globally, of which nine employees have recovered and the remaining five employees remain in self-isolation and are receiving appropriate support. No employee has tested positive for COVID-19 at our South African operations.
The lockdown in South Africa continues to have a significant impact on fuel demand. Consistent with Sasol's COVID-19 update on 8 April, this has resulted in the phased suspension of production at the Natref refinery and a 25% reduction in production rates at Secunda Synfuels Operations (SSO). Chemicals used in the mining and construction sectors have also seen a reduction in demand, which has necessitated the suspension of production of Sasol's ammonia, nitric acid and chlor-vinyl plants in Sasolburg. Market demand for Sasol's other industrial chemicals has not been significantly impacted and therefore SSO's residual operating capacity is prioritising chemicals production for supply to domestic and export markets. Fuel demand is being closely monitored in light of the two week extension of the lockdown in South Africa.
The COVID-19 situation remains highly dynamic with infection rates varying across Sasol's operating jurisdictions. Sasol's operations offer some flexibility to balance fuels and chemicals output to respond to product demand.
RESPONSE STRATEGY PROGRESS
Sasol has made significant progress in implementing the self-help measures communicated on 17 March 2020 as part of the response strategy to the COVID-19 pandemic and oil price volatility. Most of the financial year 2020 initiatives have already been agreed and are now being implemented. However, savings relating to working capital carry some risk due to higher than expected inventory levels following reduced demand and the weaker exchange rate impact on accounts receivable. For financial year 2021, we have made significant progress and have committed actions in place for more than 80% of the savings target.
The first set of self-help measures announced on 17 March 2020 is being realised mainly by:
- Optimising and reducing cash costs. A wide range of measures have been taken to cut operating costs. Some examples include non-payment of the financial year 2020 short-term incentive scheme to employees, freezing of vacancies and the drastic curtailment of external spend through engagements with suppliers to consider renegotiations on price and reduction in scope of services.
- Significant results realised by re-prioritising capital expenditure following a risk based evaluation.
- Several actions are planned to manage working capital to optimal levels for the Company to the end of financial year 2021 as the disruption associated with COVID-19 is expected to ease.
The ongoing negative demand impact from COVID-19 requires management to consider further self-help measures. These measures are necessary to help protect the Company's balance sheet and liquidity until at least the end of financial year 2021. The Company will implement the following key human capital measures:
- A 20% to 40% reduction in directors' fees.
- A two-part salary sacrifice for the President and Chief Executive Officer (CEO) which entails a donation of 33% of the CEO's salary for three months from May 2020 to the Solidarity Fund set up by the South African government to support the fight against COVID-19, and for the remaining five months to December 2020, a salary sacrifice of 20% will apply.
- Salary sacrifices for the Group Executive Committee and senior leadership members of 20%, and for middle to junior management levels ranging from 15-10%. Salary sacrifices are planned for 8 months, however the duration of the temporary measures will be reassessed against the progress we make towards our savings targets. Furthermore, no salary increases will be effected in 2020.
In addition we are proactively investigating the opportunity to conduct critical and statutory work during the current period of the lower product demand at SSO, which could allow the maintenance intervention planned for September 2020 to be optimised significantly or even postponed.
In parallel, Sasol has made progress on its expedited review of the business to consider how it can be most effectively positioned to be sustainable in a low oil price environment. Consistent with this approach, the expanded asset disposal process has yielded good interest in relation to a number of assets, despite the macro environment uncertainty. Updates on progress will be provided at the appropriate time.
UPDATE ON FINANCIAL POSITION
Sasol aims to sustain liquidity headroom above US$1 billion for the foreseeable future considering that it has no significant debt maturities before May 2021. The contribution of the suite of self-help measures is key in maintaining this liquidity position with asset disposals remaining essential to reduce Sasol's debt levels. The COVID-19 impact will have a significant negative effect on operating cash flows. The response strategy measures detailed above are necessary to mitigate the impact of reduced demand and much weaker macro-economic indicators on the Company's profitability. The necessity of any additional measures required will be assessed on the basis of the further market developments.
Sasol appreciates the ongoing support from its lending group. The process to secure appropriate adjustments to relevant covenants is underway and a further update will be provided in due course.
We are currently in the process of assessing the impact of lower-for-longer macro-economic assumptions on the value of our assets ahead of the 2020 financial year end process. Details will be provided in our future trading updates.
BUSINESS OUTLOOK
Sasol Mining's full year productivity is expected to range between 1 130-1 180 tons per continuous miner per shift, without taking into account any potential effects of the COVID-19 spread amongst our workforce and the subsequent impact on operations. We have reduced our additional external coal stock purchases by approximately 400 – 600 kilotons for the SSO value chain for the remainder of the financial year, following the recent reduction in both internal and external customer demand. The resultant increase in coal stockpiles will help mitigate potential business continuity risk including the potential impact of the spread of COVID-19 amongst the workforce.
Given the decline in liquid fuels demand following the COVID-19 prevalence, sales volumes are expected to be approximately 50-51 million barrels for financial year 2020. This is based on the current extended COVID-19 lockdown in South Africa, and a phased demand ramp-up after the lifting of the lockdown restrictions. Accordingly, SSO production for the full year is forecasted to decrease to approximately 7,3-7,4 million tons. Chemicals production will be prioritised within the revised SSO operating parameters.
Despite the Lake Charles Chemical Project (LCCP) ramp up continuing in line with expectations for operational performance, further price weakness means that the earnings before interest, taxes, depreciation, and amortisation (EBITDA) contribution from LCCP for financial year 2020 has been revised to a loss of between US$50-US$100 million. This compares to the previous guidance of a positive EBITDA of US$50-US$100 million before the price weakness as a result of the decline in oil prices and the COVID-19 global demand reduction.
Beneficial operations of the Guerbet and Ziegler units remain on track for the end of June 2020 and the LDPE unit, which was planned for the second half of the calendar year 2020, is now targeted to be on-line by the third quarter of calendar year 2020. The acceleration of this timeline will ensure that Sasol captures the additional contribution margin above ethylene, given the current low ethylene prices achieved in the market.
The financial information on which this update is based has not been reviewed and reported on by the Company's external auditors.
PRODUCTION AND SALES METRICS FOR THE NINE MONTHS ENDED 31 MARCH 2020
Sasol has published its production and sales metrics for the nine months ended 31 March 2020 on the Company´s website at www.sasol.com, under the Investor
Centre section or via this URL: https://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
Sasol is hosting a webcast to discuss the business update and production and sales metrics at 15:00 SA on Thursday, 23 April 2020. For participation, please register on the following link: https://www.corpcam.com/Sasol23042020
A replay facility will be available for a period of five days from the date of this announcement.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, expectations regarding future cash flow, Sasol's ability to meet its debt covenants, Sasol's ability to achieve the cost savings or complete its asset disposal programme, the actions referred to herein intended to strengthen Sasol's balance sheet and to maintain profitability at lower oil prices and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-business-update-production-and-sales-metrics-for-the-nine-months-ended-31-march-2020-301045895.html
SOURCE Sasol Limited
Article Date
4/23/2020Sasol Launches Cost-effective Solutions for the Oil and Gas Market: TERRAVIS PI
Source: PR Newswire
HOUSTON, April 15, 2020 /PRNewswire/ -- Higher production efficiency, lower costs: Sasol, the chemicals and energy company launches the new product series TERRAVIS PI for the oil and gas market globally.
TERRAVIS PI is an alternative to expensive heavy paraffinic crude operations options, particularly in colder environments. The products in the new TERRAVIS PI series improve the flowability of crude oil reducing solvent, insulation, utility and mechanical removal costs.
"With our TERRAVIS PI product series we address two crucial crude oil properties: yield stress, the amount of stress required to permanently deform the crude oil's flowability, and pour point, the temperature below which the crude oil loses its flow characteristics," explains Dr. Silke Hoppe, Head of Differentiated Market Development at Sasol Performance Chemicals. "Our TERRAVIS PI products can achieve a yield stress reduction of up to 97% and a pour point reduction of up to 35 C° in a range of paraffinic crudes."
"Our innovation team has created this diverse solution package to provide our customers with the tool kit that can meet all their paraffin treatment needs," Silke Hoppe adds. "Sasol has already had great success in performance testing on one of the most problematic Brazilian waxy crude oils."
About Sasol:
Sasol is a global integrated chemicals and energy company. We harness our knowledge and experience to integrate sophisticated technologies and processes into our world-scale operating facilities. We safely and sustainably source, produce and market a range of high-value product streams in 31 countries, creating superior value for our customers, shareholders and other stakeholders.
Issued by:
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600 9605
alex.anderson@sasol.com
Matebello Motloung, Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 83 773 9457
matebello.motloung@sasol.com
Torsten Titze, Manager Communications Performance Chemicals
Direct telephone: +49 40 63 684 1434
Torsten.Titze@de.sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-launches-cost-effective-solutions-for-the-oil-and-gas-market-terravis-pi-301040956.html
SOURCE Sasol Limited
Article Date
4/15/20204/8/2020 - Update on Sasol's Response to Covid-19
Update on Sasol's Response to Covid-19
Source: PR Newswire
JOHANNESBURG, April 8, 2020 /PRNewswire/ -- Shareholders are referred to Sasol's SENS announcement issued on 31 March 2020. In that announcement, Sasol stated it would continue to run its operations, in line with regulatory requirements applicable in the jurisdictions we operate in, to ensure uninterrupted supply of essential products such as fuels and chemicals in these jurisdictions. We reiterate that the COVID-19 pandemic is highly dynamic, and we will continue to update the market of any further impact on Sasol's business.
A small number of Sasol employees have tested positive for COVID-19 and are receiving our full support. These were isolated cases and have not negatively impacted operations.
Sasol communicated a comprehensive response strategy on 17 March 2020 and substantial progress has been made with regards to its US$2 billion cash conservation programme. While the Company has made substantial progress, it will also implement additional self-help management actions to mitigate further negative impacts of COVID-19 across its portfolio.
UPDATE ON OPERATIONS
In South Africa, the national COVID-19 lockdown has resulted in an unprecedented decline in fuel demand since coming into effect on Friday, 27 March 2020. Sasol and its partner in Natref, Total South Africa, decided to suspend the production at Natref with effect from Thursday, 9 April 2020 until further notice.
Given the steep decline in fuels demand, a decision was also made by Sasol to reduce daily production rates at our Secunda Synfuels Operations (SSO) by approximately 25% to meet the current market demand, while maintaining optimal inventory levels. We will maintain these production rates until further notice, while carefully monitoring the supply and demand balance. A further reduction in production rates may be required depending on further developments in the fuels market. All Sasol's mines are continuing to operate notwithstanding the lower internal demand, resulting in the external coal purchases being significantly minimised, compared to what was previously planned for the remainder of this financial year.
Chemicals production will continue to be prioritised within the revised SSO operating parameters including this cutback scenario. Despite the suspension of production at the Natref refinery and lower production rates at SSO, the country's current demand for fuels and chemicals, including sanitisers, will be met. The Company will continue to monitor the chemicals demand as well as supply chain risks and will keep the market updated on developments.
Given these developments and the decline in demand, liquid fuels sales volumes are expected to be approximately 50 – 51 million barrels against the previously guided 57 – 58 million barrels for financial year 2020. Accordingly, Synfuels production volumes will be approximately 7,3 – 7,4 million tons against the previously guided range of 7,7 – 7,8 million tons. At this stage a similar reduction in Synfuels chemicals demand is not being experienced, and Sasol is prioritising supply of chemicals within South Africa as well as strong export demand.
More detail on production volumes and updated guidance will be provided in the Company's Q3 FY20 Business Performance Metrics report, to be released in April 2020.
RESPONSE STRATEGY PROGRESS
As referenced earlier, the Company has made significant progress on the US$2 billion business self-help measures for financial years 2020 and 2021, which form the basis of the response strategy to the COVID-19 pandemic and oil price volatility.
Given the continued negative impact of COVID-19 on market demand and global macro-economic indicators, Sasol's management team is in the process of proactively identifying further measures to provide an additional buffer against short term volatility.
Sasol has put in place governance structures to manage the situation appropriately and will take decisive action where necessary to respond to any further changes in markets. These additional measures will be communicated to the market once agreed with the various stakeholders.
Safeguarding the health and well-being of employees and providing essential products to customers and stakeholders remains the Company's priority.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, expectations regarding future cash flow, Sasol's ability to meet its debt covenants, Sasol's ability to achieve the cost savings or complete its asset disposal programme, the actions referred to herein intended to strengthen Sasol's balance sheet and to maintain profitability at lower oil prices and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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. You are accordingly advised to exercise caution when trading in the Company's securities until such time the full details of the disposal and the rights offer are published. These factors and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/update-on-sasols-response-to-covid-19-301037313.html
SOURCE Sasol Limited
Article Date
4/8/2020SASOL LIMITED 24 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors with Losses in Excess of $100,000 of Deadline in Class Action Lawsuit Against Sasol Limited - SSL
Source: PR Newswire
NEW ORLEANS, April 5, 2020 /PRNewswire/ -- Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have only until April 6, 2020 to file lead plaintiff applications in a securities class action lawsuit against Sasol Limited (NYSE: SSL), if they purchased the Company's securities between March 10, 2015, and January 13, 2020, inclusive (the "Class Period"). This action is pending in the United States District Court for the Southern District of New York.
What You May Do
If you purchased securities of Sasol and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-ssl/ to learn more. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by April 6, 2020.
About the Lawsuit
Sasol and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 14, 2020, following a series of other negative disclosures during the class period, the Company confirmed that on January 13, 2020, the Company "experienced an explosion and fire at its LCCP low-density polyethylene (LDPE) unit" and that "an investigation is underway to determine the cause of the incident, the extent of the damage and resulting impact on the LDPE unit's [beneficial operation] schedule."
On this news, the price of Sasol's shares fell, injuring shareholders.
The case is Moshell v. Sasol Limited, et al, 20cv1008.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 3200
New Orleans, LA 70163
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SOURCE Kahn Swick & Foti, LLC
Article Date
4/6/2020Sasol's Response to COVID-19 Lock Down in South Africa; Credit Rating and Oil Hedging Update, and Cautionary Statement
Source: PR Newswire
JOHANNESBURG, March 31, 2020 /PRNewswire/ -- Sasol welcomes and fully supports the directives announced by South African President Cyril Ramaphosa on 23 March 2020, to combat the spread of COVID-19 in South Africa, including a three-week country-wide lockdown ("the COVID-19 directives"), which effectively commenced on Friday, 27 March 2020 and will continue until Friday, 17 April 2020.
In South Africa, Sasol's products and services, by and large, are classified as essential goods and services as per Annexure B of the Lockdown Regulations issued by the Minister of Cooperative Governance and Traditional Affairs on 25 March 2020. Sasol plans to run its South African-based operations for the duration of the lockdown, and will work with the Government to ensure business continuity and uninterrupted supply of fuels and chemicals in South Africa during this period. However, some plants will be required to reduce throughput, or potentially shutdown following lower product offtake by our customers due to the lockdown. Furthermore, some intermediate chemicals will be re-directed to the production of products where demand is not impacted, to the extent possible. To this end, Sasol has formulated a special blend of alcohols to address the increasing demand for sanitizer alcohols, and will expedite the production and availability of these critical products locally to help safeguard the health and wellbeing of South Africans.
Sasol is collaborating with the South African Department of Trade, Industry and Competition (DTIC) and is also prioritising supply to Government entities and other essential services to jointly combat the spread of the virus in South Africa.
The health and wellbeing of employees remains Sasol's foremost priority and appropriate measures have already been taken to mitigate the risk of COVID-19 infection across all of Sasol's sites. These measures are being strictly enforced and closely monitored to ensure the ongoing safety of employees and the public.
Outside of South Africa, most of Sasol's operations are continuing, with no significant impacts to North American Operations (NAO) or its supply chain, or to the Lake Charles Chemicals Project (LCCP) construction to date. Chemical manufacturing is defined as a critical infrastructure sector, and therefore NAO and the LCCP is exempt from the stay-at-home order issued by the Louisiana government.
All European and Asian assets are currently in operation. The Central Processing Facility (CPF) in Temane, Mozambique, which supplies natural gas to Mozambique and South Africa is not affected. Sasol continues to work closely with suppliers and customers to ensure uninterrupted supply, where possible.
The COVID-19 situation is highly dynamic and with infection rates continuing to increase in many countries, there is a risk of interruptions to production, construction and associated supply chains, along with a potential impact on demand and product pricing in some sectors. Shareholders are therefore advised that this could impact Sasol's earnings for 2020 financial year (FY20). The impact on the business, suppliers and customers is being continuously evaluated and an update will be provided in the Q3 FY20 Business Performance Metrics report.
UPDATE ON CREDIT RATING AND OIL HEDGING
Sasol notes that the credit rating agencies, S&P Global Ratings (S&P) and Moody's have updated their credit rating assessments of Sasol in light of the impact of the COVID-19 pandemic on global growth and the volatility in the oil price. S&P has announced that it has revised Sasol's BBB- rating, which was affirmed on 7 March to BB, with a negative outlook, while Moody's also announced that it has revised Sasol's Ba1 rating to Ba2 and placed the company under review for a downgrade. Moody's stated that "South Africa's 21-day lockdown to contain the outbreak creates further uncertainty on near-term financial performance, while an extended lockdown beyond the original timeline could further affect performance". The cost of some of Sasol's floating rate debt is partly linked to our credit rating and the revised rating profile will therefore result in an increase in finance costs from existing facilities of approximately US$10 million per annum.
As stated in the market update on 17 March 2020, Sasol has developed a comprehensive response strategy, which is being executed to mitigate the impact of COVID-19 and a lower oil price as far as practically possible. This includes a cash conservation programme, an accelerated and expanded asset disposal and partnering programme, as well as a potential rights issue of up to US$2 billion, which remains subject to the progress of other initiatives. Sasol maintains a long-term commitment to achieving an investment grade credit rating.
Further to this, progress has been made on Sasol's hedging programme reducing Sasol's exposure to any further short term pricing downside. Oil hedges are in place for approximately 80% of Synfuels fuels Q4 FY20 production, at approximately US$32 per barrel. Crude oil hedging execution will continue for the next 12 months, while US$/ZAR and ethane hedging programmes have been executed for the next twelve month period.
Sasol continues to have liquidity of approximately US$2,5 billion to provide an additional buffer against short term volatility.
Fleetwood Grobler commented "This is an unprecedented time in the history of Sasol and the world. We will continue to take decisive action to help safeguard the health and well-being of our employees and provide essential products to the many stakeholders that rely on us, while we reposition the business to enhance its long term future."
Shareholders are advised to continue to exercise caution when dealing in the Company's securities until a further announcement is made.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, expectations regarding future cash flow, Sasol's ability to meet its debt covenants, Sasol's ability to achieve the cost savings or complete its asset disposal programme, the actions referred to herein intended to strengthen Sasol's balance sheet and to maintain profitability at lower oil prices and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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. You are accordingly advised to exercise caution when trading in the Company's securities until such time the full details of the disposal and the rights offer are published. These factors and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27 (0) 10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasols-response-to-covid-19-lock-down-in-south-africa-credit-rating-and-oil-hedging-update-and-cautionary-statement-301032301.html
SOURCE Sasol Limited
Article Date
3/31/2020SOL: Sasol Limited: Update on Market Volatility and Cautionary Announcement
Source: PR Newswire
JOHANNESBURG, March 12, 2020 /PRNewswire/ -- The unprecedented set of combined challenges driven by COVID-19 and the significant decline in the oil price have come at a time when Sasol is in a peak gearing phase as the Company completes LCCP.
Sasol is confident that its foundation business is capable of positive cash flow from operations in a low oil price environment. At the prevailing Rand oil price of approximately R580/bbl, Sasol will be within the current covenant levels at 30 June 2020. In anticipation of a lower-for-longer Rand per barrel oil price, a comprehensive package of actions is being finalised to deliver this and sustainably strengthen the balance sheet. It is important to note the current liquidity position:
Sasol is prioritising the following actions, details of which will be announced to the market on Tuesday:
Sasol will update the market on the conference call at 15:00 SA on Tuesday, 17 March, with detail on the comprehensive package of actions.
Shareholders are accordingly advised to exercise caution when dealing in the Company's securities until a further announcement is made.
Fleetwood Grobler commented "The disruption in the global oil market, coupled with the ongoing impact of COVID-19 has significantly changed the outlook in just a few weeks. It is critical that we keep matters within our control by acting quickly and decisively so that stakeholders don't lose sight of the significant underlying value in this business. We are therefore working towards a package of measures to ensure that the business is profitable even at low oil prices and that we continue to have a strong balance sheet to support it."
Conference call details: | |||
Tuesday, 17 March 2020 | Time | Dial-in numbers | Replay numbers |
South Africa | 15:00 | +27 11 535 3600 | +27 10 500 4108 |
United Kingdom | 13:00 | +44 (0) 333 300 1418 | +44 (0) 203 608 8021 |
United States (ET) | 09:00 | +1 508 924 4326 | +1 412 317 0088 |
Other countries | +27 11 535 3600 | +27 10 500 4108 | |
Passcode: | 31413 | ||
The transcript will be available from March 20, 2020 at 6:00 PM (SA) on Sasol's investor relations website.
For online participation, please register on the following link: | |||
The Company may file a registration statement or a post-effective amendment to its registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (the "SEC") for any offering of securities referred to in this communication. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company will arrange to send you the prospectus after filing if you request it by calling the Investor Relations Department at +27 10 344 9280.
Disclaimer - 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, expectations, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, expectations regarding future cash flow, Sasol's ability to meet its debt covenants, the actions referred to herein intended to strengthen Sasol's balance sheet and to maintain profitability at lower oil prices and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
If you have any questions, please email: investor.relations@sasol.com or contact Feroza Syed at +27 10 344 9280.
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-update-on-market-volatility-and-cautionary-announcement-301022428.html
SOURCE Sasol Limited
Article Date
3/12/20203/9/2020 - Update on Sasol's Conference Call
Update on Sasol's Conference Call
Source: PR Newswire
JOHANNESBURG, March 9, 2020 /PRNewswire/ -- Sasol was scheduled to host a conference call on Tuesday, 10 March 2020, at 15:00 (SAST) in order to discuss the recent outcome of the periodic ratings review by S&P Global and Moody's.
Given the latest developments where oil prices have declined significantly and increased market volatility, the conference call will be moved to Tuesday, 17 March 2020, at 15:00 (SAST). This allows more time to assess the impact of these latest developments on the market and Sasol in particular.
Balance sheet protection remains a key priority. As communicated during the interim financial results, we continue to actively manage the balance sheet and several steps have already been taken to mitigate market volatility. This includes our hedging programme to mitigate commodity price movements and exchange rate exposures. We have hedged our US$/ZAR exchange rate and ethane exposure, but oil price exposure is not hedged for the remainder of FY20.
Conference call details: | ||
Tuesday, 17 March 2020 | Time | Dial-in numbers |
South Africa | 15:00 | +27 11 535 3600 |
United Kingdom | 13:00 | +44 (0) 333 300 1418 |
United States (ET) | 09:00 | +1 508 924 4326 |
Other countries | +27 11 535 3600 | |
The transcript will be available from March 20, 2020 at 6:00 PM (SA) on Sasol's investor relations website. | ||
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/update-on-sasols-conference-call-301019871.html
SOURCE Sasol Limited
Article Date
3/9/2020SOL: Sasol Limited: Grant of Conditional Share Awards to Directors and Prescribed Officers of Sasol, and Directors of Major Subsidiaries of Sasol
Source: PR Newswire
JOHANNESBURG, March 5, 2020 /PRNewswire/ -- In order for Sasol to remain competitive in the market and to keep senior management and eligible specialists retained, focused, engaged and motivated, Conditional Share Awards are made annually and forms an important component of the reward mix offered in terms of the remuneration policy. Shareholder approval of the Sasol Long-Term Incentive Plan ("the Plan" and/or "LTI", as appropriate) was obtained at the 2016 Annual General Meeting.
The Conditional Share Awards have a split vesting period of 50% after three years with the balance after five years and will only vest to the extent that the Corporate Performance Targets (detailed below), as approved by the Remuneration Committee, have been achieved after the performance period of three years. The full award is subject to the achievement of these targets.
The standard timing for the annual Conditional Share Awards is to be made to eligible participants at the beginning of the new financial year. However, due to the extended closed period at the end of the 2019 financial year, the Board agreed to postpone these awards to later in the 2020 financial year. No compensation is offered to members of the GEC in respect of the delayed award date and the standard vesting periods of three and five years respectively, will apply. To align with this timing, the on-appointment Conditional Share Awards made to F R Grobler and B V Griffith on their appointment as President and Chief Executive Officer and Executive Vice President: Chemicals Business respectively, as well as the recent appointment of H C Brand, Executive Vice President: Sustainability and Technology, all subject to the same performance and vesting conditions as the annual LTI awards, have now been made.
In compliance with paragraphs 3.63 to 3.66 of the JSE Listings Requirements, Sasol hereby announces that directors of Sasol, prescribed officers and directors of major subsidiaries of Sasol, have been granted Conditional Share Awards in terms of the Plan.
The Board, or the Sasol Remuneration Committee, as appropriate, approved the Conditional Share Awards made on 4 March 2020. In terms of the rules of the Plan, the participants have to decline such an award within ten business days after the award date, failing which the award will be deemed to have been accepted.
The rules of the LTI Plan are available on the Sasol website www.sasol.com.
Award date: | 4 March 2020 | ||||||
Deemed acceptance date: | 14 March 2020 | ||||||
Vesting periods: | 50% after 3 years and the balance after 5 years to the extent | ||||||
Class of securities: | Sasol ordinary shares | ||||||
Nature of transaction: | Annual supplementary LTI Award (off-market) | ||||||
Price per share* | R192,83 | ||||||
Nature and extent of interest: | Direct beneficial | ||||||
Surname and | Designation | Company | Number | Total value | |||
Victor, P | Director | Sasol Limited | 63 497 | 12 244 126,51 | |||
Kahla, V D | Director | Sasol Limited | 43 628 | 8 412 787,24 | |||
Mokoena, C K | Director Prescribed Officer | Sasol South Africa Limited | 32 424 | 6 252 319,92 | |||
Klingenberg, B E | Director Prescribed Officer | Sasol Oil (Pty) Ltd Sasol Limited | 46 010 | 8 872 108,30 | |||
Radebe, M | Director Prescribed Officer | Sasol Oil (Pty) Ltd Sasol Limited | 31 953 | 6 161 496,99 | |||
Brand, H C | Prescribed Officer | Sasol Limited | 28 025 | 5 404 060,75 | |||
Award date: | 4 March 2020 | ||||||
Deemed acceptance date: | 14 March 2020 | ||||||
Vesting periods: | 50% after 3 years and the balance after 5 years to the extent | ||||||
Class of securities: | Sasol ordinary shares | ||||||
Nature of transaction: | On-appointment LTI Award (off-market) | ||||||
Price per share* | R192,83 | ||||||
Nature and extent of interest: | Direct beneficial | ||||||
Surname and | Designation | Company | Number | Total value | |||
Grobler, F R | Director | Sasol Limited | 99 569 | 19 199 890,27 | |||
Brand, H C | Prescribed Officer | Sasol Limited | 22 644 | 4 366 442,52 | |||
Award date: | 4 March 2020 | ||||
Deemed acceptance date: | 14 March 2020 | ||||
Vesting periods: | 50% after 3 years and the balance after 5 years | ||||
Class of securities: | Sasol American Depository Receipts (ADRs) | ||||
Nature of transaction: | Annual supplementary LTI Award (off-market) | ||||
Price per share* | US$12,07 | ||||
Nature and extent of interest: | Direct beneficial | ||||
Surname and | Designation | Company | Number | Total value of the | |
Harris, J R | Prescribed Officer | Sasol Limited | 44 302 | 534 725,14 | |
Award date: | 4 March 2020 | ||||
Deemed acceptance date: | 14 March 2020 | ||||
Vesting periods: | 50% after 3 years and the balance after 5 years | ||||
Class of securities: | Sasol American Depository Receipts (ADRs) | ||||
Nature of transaction: | On-appointment LTI Award (off-market) | ||||
Price per share* | US$12,07 | ||||
Nature and extent of interest: | Direct beneficial | ||||
Surname and | Designation | Company | Number | Total value of the | |
Griffith, B V | Prescribed Officer | Sasol Limited | 24 230 | 292 456,10 | |
The necessary clearance to deal has been obtained for all the transactions set out above in terms of paragraph 3.66 of the JSE Listings Requirements.
*Strike price per share is nil. The Price per share indicated is the closing price of the Sasol ordinary share / ADR on 3 March 2020, the day before the grant was made (R192,83 in the case of Sasol ordinary shares and US$12,07 in the case of ADRs) which was used to calculate the number of shares / ADRs.
**The total transaction value is the Price per share multiplied by the number of Sasol ordinary shares / ADRs awarded.
FY20 Corporate Performance Targets
The Board annually considers the Corporate Performance Targets to ensure they reflect a balanced outcome for both the participants and shareholders and serve as motivation for the participants to focus on objectives that enable the achievement of the longer-term strategic priorities. The participants listed above have 100% of their share awards subject to the achievement of these Corporate Performance Targets (CPTs), which the Board believes is a significant incentive to encourage performance. The following table sets out the targets:
MEASURE | WEIGHTING | THRESHOLD | TARGET | STRETCH |
Increase in total tons | 30% | 1% compound | 2% compound | 3% compound |
Return on Invested | 20% | Rest of Sasol: ROIC | Rest of Sasol: ROIC | Rest of Sasol: ROIC |
10% | US: ROIC (excl. AUC) | US: ROIC (excl. AUC) | US: ROIC (excl. AUC) | |
TSR – MSCI World | 20% | Below the 50th | 60th percentile of the | 75th percentile of the |
TSR – MSCI Chemicals | 20% | Below the 50th | 60th percentile of the | 75th percentile of the |
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-grant-of-conditional-share-awards-to-directors-and-prescribed-officers-of-sasol-and-directors-of-major-subsidiaries-of-sasol-301017117.html
SOURCE Sasol Limited
Article Date
3/5/2020Sasol Interim Financial Results for Six Months to 31 December 2020
Source: PR Newswire
JOHANNESBURG, Feb. 24, 2020 /PRNewswire/ -- Financial performance and position
* Per the Revolving credit facility and US dollar Term Loan covenant definition
Resilient operational performance
Lake Charles Chemicals Project (LCCP) updated
Positioning for a sustainable future
** Broad-based Black Economic Empowerment
Earnings performancei,ii,iii
We delivered a satisfactory set of business results for the six months ended 31 December 2019, with increased volumes while cost and working capital tracked our internal targets contributing to the balance sheet covenant levels being maintained within market guidance. The financial results were impacted mostly by a weak macroeconomic environment, which resulted in lower margins, and the LCCP being in a ramp-up phase.
Earnings decreased by 72% to R4,5 billion compared to the prior period. This resulted from a 9% decrease in the rand per barrel price of Brent crude oil, softer global chemical prices and refining margins, lower productivity at our Mining operations and a negative contribution from the LCCP. Our gross margin percentage decreased by 2% compared to the prior period driven by a softer macroeconomic environment negatively impacting supply-demand dynamics especially in our chemicals businesses. We anticipate softer chemical prices over the next 12 to 24 months and expect structural recovery over the medium to long-term. Our Energy business was impacted by lower crude oil prices as well as lower refining margins due to weaker demand.
As the LCCP units progress through the sequential beneficial operation schedule, our revenues do not yet match the costs expensed. We do expect that for the second half of FY20 revenue will match the costs expensed better and that the LCCP will generate positive earnings before interest, tax, depreciation and amortisation (EBITDA). The LCCP negatively impacted earnings by R2,8 billion (EBITDA of R1,1 billion and R1,7 billion in additional depreciation charges). Earnings were further impacted by approximately R2,0 billion in finance charges for the period as the LCCP units reach beneficial operation.
Total cash fixed cost increased by 10% to R30,5 billion as a result of United States (US) growth costs and inflation. Normalised cash fixed cost* increased by 5,4%, which is within our internal inflation target of 6%. Our cost management processes remain robust while we continue to evaluate further opportunities to embed our continuous improvement efforts. The sustained competitiveness of our business remains top of mind.
As a result of the aforementioned factors our key financial metrics were impacted as follows:
* Excludes US growth and business establishment costs.
Earnings analysis
Key metrics | Change % | Half year 31 Dec 19 Rm | Half year 31 Dec 19 Rm |
EBIT (R million) | (53) | 9 853 | 20 791 |
Depreciation and amortisation | 10 977 | 8 392 | |
Earnings before interest, tax, depreciation and amortisation (EBITDA) | 20 830 | 29 183 | |
Remeasurement items | (169) | (599) | |
Share-based payments¹ | 795 | 579 | |
Unrealised hedging gains² | (1 013) | (2 508) | |
Unrealised translation gains³ | (465) | (94) | |
Change in discount rate of environmental provisions | (383) | 230 | |
Adjusted EBITDAiv | (27) | 19 595 | 26 791 |
1 Share-based payments includes both cash-settled and equity-settled share-based payment charges. | |||
2 Consists of unrealised hedging gains on Group hedging activities. | |||
3 Unrealised translation gains on the translation of foreign currency denominated loans. | |||
Core headline earnings per sharev reconciliation
Key metrics | Change % | Half year 31 Dec 19 Rm | Half year 31 Dec 19 Rm |
Basic earnings per share | (53) | 9 853 | 20 791 |
Net remeasurement items | 10 977 | 8 392 | |
Headline earnings per share | 20 830 | 29 183 | |
Translation impact of closing exchange rate¹ | (169) | (599) | |
Realised and unrealised net gains on hedging activities² | 795 | 579 | |
Khanyisa B-BBEE transaction³ | (1 013) | (2 508) | |
LCCP losses during ramp-up⁴ | (465) | (94) | |
Provision for tax litigation matters⁵ | (383) | 230 | |
Core headline earnings per sharev | (27) | 19 595 | 26 791 |
1 Translation losses/(gains) arising on the translation of monetary assets and liabilities into functional currency. | |||
2 Consists of realised and unrealised net gains on Group hedging activities of R0,5 billion compared to R1,1 billion in the prior period, incurred within the Group Functions segment, and net gains on foreign exchange contracts of R0,5 billion compared to net losses of R0,7 billion in the prior period. | |||
3 Sasol Khanyisa equity-settled share-based payments charges recorded in the employee-related expenditure line in the income statement. | |||
4 Losses totalling R2,8 billion (being R1,6 billion and R1,2 billion incurred by the Performance Chemicals and Base Chemicals segments respectively) relating to negative EBITDA of R1,1 billion and depreciation of R1,7 billion attributable to the LCCP while in ramp-up phase. | |||
5 Sasol Oil tax matter settlement including interest and penalties. | |||
Balance sheet management
Our gearing increased from 56,3% at 30 June 2019 to 64,5% which is at the upper end of our previous market guidance of 55% to 65%. The main reasons for the increase in gearing are the adoption of the IFRS 16 'Leases' accounting standard (4% increase) and the net earnings impact of the LCCP being in a ramp-up phase. Consistent with our long-term commitment to maintain our investment grade credit rating, we continue to actively manage the balance sheet with the objective of maintaining a healthy liquidity position and a balanced debt maturity profile.
The lenders have agreed to increase the covenant level to 3,5 times for the financial reporting periods ending December 2019 and June 2020. Our net debt: EBITDA at 31 December 2019, based on the Revolving Credit facility and US dollar Term Loan covenant definition, was 2,9 times, which remains well below the covenant.
We secured incremental US dollar liquidity through a US$1 billion syndicated loan facility for up to 18 months, and bilateral facilities (with a combined quantum of US$250 million) with a tenor of two years. These facilities enhance our US dollar liquidity position during the peak gearing phase as the LCCP ramps up.
In the South African market, we have both bank loan facilities and an R8,0 billion Domestic Medium- Term Note Programme (DMTN) which was established in 2017. In August 2019, we issued our inaugural paper to the value of R2,2 billion in the local debt market under this DMTN programme.
Cash generated by operating activities decreased by 21% to R19,6 billion compared to R24,8 billion in the prior period. This was largely due to the softer macroeconomic environment and losses attributable to the LCCP. The decrease was partially negated by another strong working capital and cost performance from the foundation business. Working capital decreased by R433 million during the period mainly as a result of focused management actions.
Our net cash on hand position decreased from R15,8 billion as at 30 June 2019 to R12,7 billion.
Actual capital expenditure, including accruals, amounted to R21 billion. This includes R10 billion (US$0,7 billion) relating to the LCCP and is in line with our internal targets.
In line with our financial risk management framework, we continue to make good progress with hedging our currency and ethane exposure. For further details of our open hedge positions we refer you to our Analyst Book (www.sasol.com).
Dividend
After careful consideration of our current leverage and the volatility in the macroeconomic environment, the Board of directors (Board) decided to pass the interim dividend to protect and strengthen our balance sheet. This is a decision that was not taken lightly as we remain committed to delivering shareholder value, however, given the current position of our balance sheet, the Board made this decision in the long-term interest of our shareholders. We continue to ensure that we deliver the key elements of our strategy, particularly the completion of the LCCP.
Enhancing shareholder value through portfolio optimisation
As previously announced, we initiated a review of our portfolio in 2017 to ensure that our capital is invested effectively. We reviewed the entire portfolio to optimise the potential of each asset and focus only on assets that can generate attractive returns through the cycle, are fit for purpose and are core to our long-term strategic focus. This asset review process is now substantially complete and we have identified a number of assets for divestment or equity dilution, potentially generating proceeds exceeding US$2 billion. Together with the partial divestment from the explosives business, we have concluded transactions amounting to 20% of the target and are currently reviewing and assessing the potential of other disposals. We are not relying on any disposals to deleverage the balance sheet and will be highly disciplined in all portfolio actions to ensure they enhance shareholder value. Protecting value and ensuring future quality of earnings are key metrics before an asset disposal mandate is provided and executed.
Update on Lake Charles Chemicals Project (LCCP)
Ongoing focus as we ramp up plants to beneficial operation
At the LCCP, we maintain our focus on safely improving productivity in the field and bringing the plants into beneficial operation. The project continued with its exceptional safety record with a recordable case rate (RCR) of 0,10.
At the end of December 2019, engineering and procurement activities were substantially complete and construction progress was at 98%, with overall project completion at 99%.
The investigation into the incident which occurred at the LDPE unit in January 2020 is complete. The root cause analysis determined that a piping support structure, within the LDPE emergency vent system, failed during commissioning causing a pipe to dislodge. No major equipment was damaged, and the incident was isolated. Remediation has commenced, however, the replacement of the high pressure piping material components have long lead times. We expect beneficial operation of the LDPE unit to be delayed to the second half of calendar year 2020. Parallel commissioning activities on the
remainder of the LDPE unit continue during remediation and every effort will be made to expedite the restoration project. The overall LCCP cost estimate is tracking US$12,8 billion, within our previous guidance of US$12,6 billion to US$12,9 billion, and our EBITDA estimate of US$50 million to US$100 million for FY20 remains.
During the time of the delay in the LDPE unit startup, the ethylene produced by the cracker and destined for the unit is sold externally. All previously commissioned units were unaffected and are operating to plan.
The ETO unit, the fourth of seven units, achieved beneficial operation on 30 January 2020. The unit has a nameplate capacity of 100 kilo tons (kt) per year, forms part of our ethylene oxide value chain and adds to the capacity of our Performance Chemicals product volumes already produced and sold on both a regional and global scale. The ETO unit follows the linear low-density polyethylene (LLDPE), world-scale ethane cracker and ethylene oxide/ethylene glycol (EO/EG) facilities, which all reached beneficial operation last year and are operating to plan. This provides additional flexibility to our ethylene oxide value chain and will enable us to divert some volume away from the mono-ethylene glycol (MEG) product line and support increased margins. As previously communicated, we still expect the Ziegler and Guerbet plants to achieve beneficial operation in the last quarter of FY20.
The ethane cracker is ramping up following the successful replacement of the acetylene reactor catalyst in December 2019. The plant is expected to operate according to plan for the remainder of the year. The LLDPE plant and the EO value chain are ramping up to plan with our learnings to be carried over to the LDPE ramp-up.
The LCCP remains a world-scale, first quartile feedstock-advantaged plant, highly integrated across a diverse product slate with high margin products and world class logistics and infrastructure.
The short-term market outlook for ethane and product pricing remains volatile and estimates will be updated periodically. We expect EBITDA in the range of US$600 million to US$750 million for FY21.
i Forward-looking statements are the responsibility of the Directors and in accordance with standard practice, it is noted that this statement has not been reviewed and reported on by the Company's auditors.
ii All comparisons to the prior period refer to the six months ended 31 December 2018. All numbers are quoted on a pre-tax basis, except for earnings attributable to shareholders.
iii All other operational and financial measures (such as cash fixed cost) have not been reviewed and reported on by the Company's auditors.
iv Adjusted EBITDA is calculated by adjusting EBIT for depreciation and amortisation, share-based payments, remeasurement items, movement in environmental provisions due to discount rate changes, unrealised translation gains and losses, and unrealised gains and losses on Group hedging activities. We believe Adjusted EBITDA is a useful measure of the Group's underlying cash flow performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. (Adjusted EBITDA constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation and pro forma financial information notes as set out on page 21).
v Core HEPS is calculated by adjusting headline earnings per share with certain once-off items (provision for tax litigation matters and LCCP cash fixed cost with limited corresponding gross margin), period close adjustments and depreciation and amortisation of capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, and share-based payments on implementation of B-BBEE transactions. Period close adjustments include translation gains and losses arising from translation of monetary assets and liabilities into functional currency and realised and unrealised net gains on Group hedging activities at period end in order to remove volatility from earnings from period to period. (Core HEPS constitutes pro forma financial information in terms of the JSE Limited Listings Requirements and should be read in conjunction with the basis of preparation and pro forma financial information notes as set out on page 21).
The full announcement and the HY20 interim financial results will be available on the Company's website at https://www.sasol.com/investor-centre/financial-reporting/annual-integrated-report/interim-results.
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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude: mmboe – million barrels oil equivalent.
All references to years refer to the financial year ended 30 June.
Any reference to a calendar year is prefaced by the word "calendar".
Comprehensive additional information is available on our website: www.sasol.com
For Sasol Investor Relations:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
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SOURCE Sasol Limited
Article Date
2/24/2020SSL Stock: Berger Montague Investigates Securities Fraud Class Action Claims Against Sasol Limited (NYSE: SSL); Lead Plaintiff Deadline is April 6, 2020
Source: PR Newswire
PHILADELPHIA, Feb. 14, 2020 /PRNewswire/ -- Berger Montague announces that a class action lawsuit has been filed against Sasol Limited ("Sasol" or the "Company") on behalf of all purchasers of Sasol securities between March 10, 2015 and January 13, 2020 ("Class Period"). Sasol's American Depositary Receipts ("ADRs") trade on the NYSE.
If you wish to discuss the claims against Sasol or have any questions concerning your rights or interests, please contact our attorneys Andrew Abramowitz, Esq. at (215) 875-3015 or Michael Dell'Angelo, Esq. at (215) 875-3080, or visit www.bergermontague.com/sasol.
According to the Complaint, Defendants misled investors by misrepresenting and/or failing to disclose that:
Investors began to learn the true state of the LCCP through a series of disclosures. First, on May 22, 2019, Sasol abruptly raised the project's cost estimate by $1 billion and disclosed an internal review into the project's costs and construction schedule. The Company admitted to weaknesses in the project's integrated controls, as well as significant additional concerns related to the project's forecasting process.
Then, on October 27, 2019, Sasol terminated its co-CEOs following an internal probe showing that the LCCP management team had acted inappropriately, lacked experience, and was overly focused on maintaining cost and schedule estimates instead of providing accurate information.
Finally, on January 13, 2020, Sasol disclosed that an explosion and fire had occurred at the LCCP's low-density polyethylene unit, which necessitated a shutdown of the unit.
Each of these disclosures caused the price of Sasol's ADRs to decline sharply.
If you purchased Sasol securities during the Class Period, no later than April 6, 2020, you may request that the Court appoint you lead plaintiff of the proposed Class. You do not need to be a lead plaintiff to share in any possible recovery to the Class.
Whistleblowers: Persons with non-public information regarding Sasol should consider their options to help Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of successful recoveries obtained by the SEC. For more information, please contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew D. Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
www.bergermontague.com
Michael Dell'Angelo, Managing Shareholder
Berger Montague
(215) 875-3080
mdellangelo@bm.net
www.bergermontague.com
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SOURCE Berger Montague
Article Date
2/14/2020Investor Alert: Kaplan Fox Investigates Sasol Limited
Source: PR Newswire
NEW YORK, Feb. 11, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating Sasol Limited ("Sasol" or the "Company") (NYSE: SSL). A class action securities lawsuit has been filed on behalf of investors who purchased Sasol securities, including Sasol American Depositary Receipts ("ADRs"), between March 10, 2015 and January 13, 2020, inclusive (the "Class Period").
According to the complaint, on October 27, 2014, Sasol announced the construction of an $8.1 billion ethane cracker and derivatives complex in Lake Charles, Louisiana, the Lake Charles Chemicals Project ("LCCP").
On June 6, 2016, Sasol reported that "the expected total capital expenditure for the [LCCP] could increase up to US$11 billion. . . ." Following this news, the price of Sasol's ADRs fell $3.53 per share, nearly 11%, to close at $28.60 per ADR on June 6, 2016.
On May 22, 2019, Sasol disclosed that the cost estimate for LCCP had been revised to a range of $12.6 billion to $12.9 billion, about 50% more than initially planned. Following this news, the price of Sasol's ADRs fell $4.50 per share, nearly 15%, to close at $25.64 per ADR on May 22, 2019.
On August 16, 2019, Sasol issued a press release disclosing that it was delaying the announcement of its 2019 financial results due to "possible LCCP control weaknesses." Following this news, the price of Sasol's ADRs fell $0.74 per share, about 4%, to close at $17.67 per ADR on August 16, 2019.
On October 28, 2019, Sasol disclosed that its review of the LCCP control weaknesses had found "errors, omissions, and inaccuracies in the [LCCP] cost estimate" and, according to the complaint, that a number of unethical and improper reporting activities had taken place at the highest level of management. Sasol also announced the resignations of its Joint Chief Executive Officers, Mr. Bogani Nqwababa and Mr. Stephen Cornell.
Finally, on January 14, 2020, Sasol issued a press release confirming that on January 13, 2020, the Company "experienced an explosion and fire at its LCCP low-density polyethylene (LDPE) unit." Further, Sasol stated that "[t]he unit was in the final stages of commissioning and startup when the incident occurred" and "has been shut down and an investigation is underway to determine the cause of the incident, the extent of the damage and resulting impact on the LDPE unit's [beneficial operation] schedule. Following these disclosures, the price of Sasol's ADRs fell $1.70 per share, or 7.84%, over two trading days, to close at $19.99 per ADR on January 15, 2020.
The complaint alleges, among other things, that throughout the Class Period, the Company and other Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sasol had conducted insufficient due diligence into, and failed to account for multiple issues with, the LCCP, as well as the true cost of the project; (ii) construction and operation of the LCCP was consequently plagued by control weaknesses, delays, rising costs, and technical issues; (iii) these issues were exacerbated by Sasol's top-level management, who engaged in improper and unethical behavior with respect to financial reporting for the LCCP and the project's oversight; and (iv) all of the foregoing was reasonable likely to render the LCCP significantly more expensive than disclosed and negatively impact the Company's financial results.
If you are a member of the proposed Class, you may move the court no later than April 6, 2020 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
View original content:http://www.prnewswire.com/news-releases/investor-alert-kaplan-fox-investigates-sasol-limited-301003218.html
SOURCE Kaplan Fox & Kilsheimer LLP
Article Date
2/11/2020HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Urges Investors in Sasol Limited (SSL) Who Have Suffered Losses to Contact its Attorneys: Securities Fraud Lawsuit Filed
Source: PR Newswire
SAN FRANCISCO, Feb. 6, 2020 /PRNewswire/ -- Hagens Berman urges investors in Sasol ADRs (NYSE: SSL) who have suffered significant losses to submit their losses now. A securities class action has been filed and certain investors may have valuable claims.
Class Period: Mar. 10, 2015 – Jan. 13, 2020 | |
Lead Plaintiff Deadline: Apr. 6, 2020 | |
Sign Up: www.hbsslaw.com/investor-fraud/SSL | |
Contact An Attorney Now: | |
844-916-0895 | |
Sasol Limited (SSL) Securities Class Action:
According to the Complaint, Defendants misled investors by misrepresenting and failing to disclose that; (1) Sasol conducted insufficient due diligence into, and did not account for multiple issues with, Sasol's Lake Charles chemical plant ("LCCP"), as well as its true cost; (2) construction and operation of the LCCP was plagued by control weaknesses, delays, rising costs, and technical issues; and (3) Sasol's top-level management exacerbated these issues by engaging in improper and unethical behavior concerning financial reporting for, and oversight of, the LCCP.
Investors began to learn the truth through a series of disclosures, including on May 22, 2019, when Sasol abruptly raised the project's cost estimate by $1 billion and disclosed an internal review into the project's costs and construction schedule. The company admitted to weaknesses in the project's integrated controls, as well as significant additional concerns related to the project's forecasting process.
Then, on Oct. 27, 2019, Sasol terminated its co-CEOs following an internal probe showing that the Lake Charles project management team acted inappropriately, lacked experience, and was overly focused on maintaining cost and schedule estimates instead of providing accurate information.
Finally, on Jan. 13, 2020, Sasol disclosed an explosion and fire at its Lake Charles project's low-density polyethylene unit, requiring the company to shut down the unit.
Each of these disclosures caused the price of Sasol ADRs to decline sharply.
"We're focused on investors' losses and proving Sasol misled investors about the Lake Charles project's cost, timing and internal controls," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased Sasol ADRs and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Sasol should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SSL@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP
Article Date
2/7/20201/31/2020 - SOL: Sasol Limited: Trading Statement For The Financial Half Year Ended 31 December 2019 and LCCP Update
SOL: Sasol Limited: Trading Statement For The Financial Half Year Ended 31 December 2019 and LCCP Update
Source: PR Newswire
JOHANNESBURG, Jan. 31, 2020 /PRNewswire/ -- Sasol is expected to deliver a satisfactory set of operational results for the six months ended 31 December 2019, with a good volume, cost and working capital performance. The financial results were however impacted by a weak macroeconomic environment. This resulted in lower margins and operating profit.
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA*) are expected to decline by between 22% and 32% from R26,8 billion in the prior half year. This results from a 9% decrease in the rand per barrel price of Brent crude oil, softer global chemical and refining margins and a negative EBITDA contribution from the Lake Charles Chemicals Project (LCCP). As the LCCP units progress through the sequential beneficial operation schedule, the costs associated with the relevant units are expensed while the gross margin contribution follows the planned volume ramp-up profile and inventory build. Earnings are further impacted by approximately R1,7 billion in additional depreciation charges and approximately R2 billion in finance charges for financial half year 2020 as the LCCP units reach beneficial operation.
Shareholders are accordingly advised that:
We expect net debt to EBITDA to remain below 3,0 times and gearing to remain within the previous market guidance of 55% and 65% for financial half year 2020.
Lake Charles Chemicals Project update
Sasol provided an update on the impact of the explosion and fire at the low-density polyethylene (LDPE) unit on 24 January 2020. Mainly as a result of the aforementioned incident, Sasol has revised its guidance on the EBITDA contribution from the LCCP for the financial year 2020 to between US$50 million and US$100 million.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sasol's financial results for the financial half year ended 31 December 2019 will be announced on Monday, 24 February 2020.
* Adjusted EBITDA are calculated by adjusting operating profit for depreciation, amortisation, share-based payments, remeasurement items, movement in rehabilitation provisions due to discount rate changes, unrealised translation gains and losses, and unrealised gains and losses on our hedging activities.
** Core HEPS are calculated by adjusting headline earnings with once-off items, period close adjustments and depreciation and amortisation of capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, and share-based payments on implementation of B-BBEE transactions. Period close adjustments in relation to the valuation of our derivatives at period end are to remove volatility from earnings as these instruments are valued using forward curves and other market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of the group´s sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of the directors of Sasol. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Sasol´s financial position, changes in equity, results of operations or cash flows.
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 10-344-7778
investor.relations@sasol.com
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SOURCE Sasol Limited
Article Date
1/31/2020Sasol Limited - Update on the Lake Charles Chemicals Project (LCCP) Low-density Polyethylene Unit and Sasol Publishes Production and Sales Metrics for the Financial Half Year Ended 31 December, 2019
Source: PR Newswire
JOHANNESBURG, Jan. 24, 2020 /PRNewswire/ -- At Lake Charles, we maintain our focus on safely improving productivity in the field and bringing the plants into beneficial operation. The project continued with its exceptional safety record with a recordable case rate of 0,10.
At the end of December 2019, engineering and procurement activities were substantially complete and construction progress was at 98%. Overall project completion was at 99% and capital expenditure amounted to US$12,5 billion.
An explosion and fire occurred at the Low-density Polyethylene (LDPE) unit on 13 January, 2020. All employees and contractors are safe and accounted for. In line with standard safety protocols as well as the necessary regional requirements, the unit had to be made safe before re-entry of personnel into the affected area could be allowed. The area which is the subject of the explosion, is a high pressure section of the LDPE unit.
The investigation is underway to determine the cause, extent of the damage, and the scope and timeline of repair. Initial findings indicate the damage is limited to a small portion of the LDPE unit and, importantly, major equipment such as the compressors were unaffected. Parallel commissioning activities on the remainder of the LDPE unit will continue. The technology providers, licensors and other external experts are fully engaged and in addition, we have mobilized and dispatched a team of Sasol technical and operations experts to support the investigation team.
During the time of the delay in the LDPE unit start-up, the ethylene produced by the cracker and destined for the unit will be sold externally. The projected earnings for the LCCP complex in this financial year will only be impacted by the loss in the margin of ethylene to low-density polyethylene. In addition, the insurance process has been initiated and cover includes construction and commissioning activities. We expect to determine the repair scope and outage duration by the second half of February.
All previously commissioned units were unaffected and are operating to plan. The Ethoxylates, Ziegler and Guerbet plants are also unaffected and remain within cost and schedule as per our previous guidance.
Production and sales metrics for the financial half year ended 31 December, 2019
Sasol has published its production and sales metrics for the financial half year ended 31 December, 2019 on the Company´s website at www.sasol.com, under the Investor Centre section or via this URL: http://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics.
Sasol expects a largely strong operational performance for the financial year ending 30 June, 2020 with:
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
View original content:SOURCE Sasol Limited
Article Date
1/24/20201/14/2020 - Sasol Confirms Incident at Lake Charles Chemicals Project (LCCP) Low-Density Polyethylene Unit
Sasol Confirms Incident at Lake Charles Chemicals Project (LCCP) Low-Density Polyethylene Unit
Source: PR Newswire
JOHANNESBURG, Jan. 14, 2020 /PRNewswire/ -- On Monday 13 January 2020 at 13:15 (US Central Standard Time), Sasol experienced an explosion and fire at its LCCP low-density polyethylene (LDPE) unit.
The fire was extinguished and all employees and contractors are safe and accounted for.
The new LDPE unit had not yet achieved beneficial operation (BO) as planned for in December 2019. The unit was in the final stages of commissioning and startup when the incident occurred. The unit has been shut down and an investigation is underway to determine the cause of the incident, the extent of the damage and resulting impact on the LDPE unit's BO schedule.
All other Lake Charles units and previously commissioned LCCP units, namely the ethane cracker, ethylene glycol/ethylene oxide and linear low-density polyethylene units, are unaffected and operating to plan. The ethane cracker has achieved nameplate capacity following the successful replacement of the acetylene reactor catalyst in the plant during December 2019.
The remaining three downstream units under construction to complete the integrated LCCP site, Ziegler alcohols and alumina, alcohol ethoxylates and Guerbet alcohols, are also unaffected and remain within cost and schedule as per our previous guidance.
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on or about 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-confirms-incident-at-lake-charles-chemicals-project-lccp-low-density-polyethylene-unit-300986650.html
SOURCE Sasol Limited
Article Date
1/14/2020Sasol's Lake Charles Chemicals Project (LCCP) Ethane Cracker Successfully Replaces Acetylene Catalyst and Increases Ethylene Production Rates
Source: PR Newswire
JOHANNESBURG, Dec. 17, 2019 /PRNewswire/ -- Sasol is pleased to announce that the LCCP Ethane Cracker is increasing production rates following the successful replacement of the acetylene reactor catalyst. The Ethane Cracker achieved beneficial operation in August 2019 but has run approximately 50 - 60% of nameplate capacity due to underperformance of the plant's acetylene removal system. This issue has now been resolved.
The outage to replace the catalyst was successfully completed on schedule and within budget. Following the outage, the unit was started up smoothly and ethylene production rates are approximately 85 - 90% of nameplate capacity and are increasing. Ethylene quality meets US Gulf Coast ethylene pipeline specifications.
Sasol also looks forward to the completion of the LCCP Low Density Polyethylene (LDPE) Unit which is being commissioned with beneficial operation expected later in December 2019. The remaining three downstream units under construction to complete the integrated LCCP site, Ziegler Alcohols and Alumina, Alcohol Ethoxylates, and Guerbet Alcohols, remain on cost and schedule as per our previous guidance.
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on or about 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasols-lake-charles-chemicals-project-lccp-ethane-cracker-successfully-replaces-acetylene-catalyst-and-increases-ethylene-production-rates-300975847.html
SOURCE Sasol Limited
Article Date
12/17/201911/25/2019 - Trading Statement for the Financial Half Year Ending 31 December 2019 and Update on Balance Sheet Management
Trading Statement for the Financial Half Year Ending 31 December 2019 and Update on Balance Sheet Management
Source: PR Newswire
JOHANNESBURG, Nov. 25, 2019 /PRNewswire/ -- The Company hereby advises that for the half year ending 31 December 2019:
A more detailed trading statement will be published as soon as more certainty has been attained with respect to the range of the decrease in HEPS and EPS.
Our results for the six months ending 31 December 2019 may be further affected by adjustments resulting from our half year-end closure process. This may result in a change in the estimated earnings noted above. This trading statement only deals with the comparison to the prior period.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sasol's results for the financial half year ending 31 December 2019 will be announced on Monday, 24 February 2020.
The Company has taken a number of actions consistent with its ongoing commitment to balance sheet flexibility, access to liquidity, and maintaining an optimal funding mix. This includes putting in place incremental liquidity through a US$1 billion syndicated loan facility with Bank of America, Citi, Mizuho and MUFG of up to 18 months and two bilateral facilities with a combined quantum of US$250 million, and a tenor of two years. These facilities enhance the Company's US$ liquidity position during the peak gearing phase as the Lake Charles Chemicals Project ramps up. These incremental facilities should not affect Sasol's net debt position.
In these new facilities, consistent with the Company's existing revolving credit facility and US$ Term Loan facility, the covenant has been set at 3,0x net debt: earnings before interest, taxation, depreciation and amortisation (EBITDA). However, across all of these facilities, the lenders have agreed that for the financial reporting periods ending December 2019 and June 2020 the covenant will be increased to 3.5x.
Sasol remains committed to its investment grade credit rating. Sasol is currently rated
BBB-/A-3 and Baa3/P-3 by S&P and Moody's respectively.
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on or about 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/trading-statement-for-the-financial-half-year-ending-31-december-2019-and-update-on-balance-sheet-management-300964427.html
SOURCE Sasol Limited
Article Date
11/25/2019Sasol Limited: Appointment of Executive Director, Resignation of Company Secretary and Appointment of Acting Company Secretary
Source: PR Newswire
JOHANNESBURG, Oct. 28, 2019 /PRNewswire/ -- Further to the Director and management changes referred to in our financial results announcement earlier today, the Board is pleased to also announce the appointment of Mr V D Kahla as an Executive Director of Sasol with effect from 1 November 2019. Mr Kahla joined Sasol in 2011 and serves as the Executive Vice President: Advisory, Assurance and Supply Chain and Company Secretary. Prior to joining Sasol, Mr Kahla served on the Group Executive Committee of Transnet from 2004 to 2010, after serving on the Africa Executive Committee of Standard Bank. Mr Kahla chairs the Council of Rhodes University and previously served on the Audit Committee of the South African Revenue Service. Mr Kahla holds BA and LLB degrees.
Pursuant to his appointment as an Executive Director, Mr Kahla resigned as Company Secretary of Sasol with effect from 1 November 2019. Ms MML Mokoka, currently Senior Vice President: Governance, Compliance and Ethics of Sasol and Company Secretary of Sasol South Africa Limited, has been appointed as Acting Company Secretary of Sasol with effect from 1 November 2019, until the Board fills this vacancy. Prior to joining Sasol, Ms Mokoka was the Group Company Secretary of Gold Fields Limited. She has extensive company secretariat experience, having also worked in multinational organisations such as MTN, Standard Bank and Tongaat Hulett. Ms Mokoka is an admitted attorney and holds BJuris and LLB degrees. The Board is of the view that Ms Mokoka has the necessary expertise and experience to act in this role, in accordance with the JSE Limited Listing Requirements.
Dr MSV Gantsho, the Chairman of the Board said: "On behalf of the Board, and in my own name, I welcome our new Executive Director, Mr Kahla, who brings a wealth of experience to the Sasol Board. We look forward to his contribution in this new role."
Dr Gantsho added: "We are grateful that Ms Mokoka has agreed to assume, on an acting basis, the role of Company Secretary of Sasol, until a permanent appointment is made. We wish Mr Kahla and Ms Mokoka well in their new roles."
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-appointment-of-executive-director-resignation-of-company-secretary-and-appointment-of-acting-company-secretary-300946248.html
SOURCE Sasol Limited
Article Date
10/28/2019Sasol Full Year Financial Results to 30 June 2019 and LCCP Update
Source: PR Newswire
JOHANNESBURG, Oct. 28, 2019 /PRNewswire/ --
Financial performance in context
Resilient operational performance
Board review concluded - No earnings, financial position or cash flow restatements
Focused balance sheet management
Advancing Lake Charles Chemicals Project (LCCP)
Progressing sustainability
Earnings performance
Our foundation business delivered resilient results with a mostly strong volume and normalised cash fixed cost performance against the backdrop of a challenging macroeconomic environment. Our business was impacted by market and geopolitical risk, including subdued growth in global gross domestic product (GDP).
Our gross margin percentage decreased 2% compared to the prior year driven by a softer macro environment negatively impacting supply-demand dynamics especially in our chemicals business. We view this as temporary as the market is expected to recover over the short-to-medium term. Our Energy business benefitted from higher crude oil prices and higher diesel differentials. These benefits were partly offset by weaker petrol differentials driven by negative supply-demand fundamentals.
Cash fixed cost, excluding capital growth and the impact of exchange rates, increased by 5,7%, relative to our internal 6% inflation target. Our cost management processes remain robust while we continue to evaluate further opportunities to embed our continuous improvement efforts. The sustained competitiveness of our business remains top of mind.
Adjusted EBITDA2 decreased 9% compared to the prior year due to lower chemical product prices and higher LCCP operating cost. As the LCCP progresses through the sequential beneficial operation schedule, the costs associated with relevant units are expensed while the gross margin contribution follows the ramp-up profile and inventory build. We expect a closer match between margin and costs for the LCCP to be achieved from 2020.
EBIT decreased 45% to R9,7 billion, largely due to significant remeasurement items of R18,6 billion (US$1,3 billion) recorded in the current year resulting from softer chemical prices as well as the higher than anticipated capital spend on the LCCP.
CHEPS increased 5% to R38,13 compared to the prior year. HEPS increased 12% to R30,72 per share compared to the prior year. The increase in core headline earnings continues to reflect our cash flow generating ability from our foundation businesses despite weaker chemicals pricing.
Key metrics | 2019 | 2018 | Change % |
EBIT (R million) | 9 697 | 17 747 | (45) |
Headline earnings (R million) | 18 941 | 16 798 | 13 |
Earnings per share (Rand) | 6,97 | 14,26 | 51 |
Headline earnings per share (Rand) | 30,72 | 27,44 | 12 |
Core headline earnings per share (Rand) | 38,13 | 36,38 | 5 |
Dividend per share (Rand) | 5,90 | 12,90 | (54) |
- Interim (Rand) | 5,90 | 5,00 | 18 |
- Final (Rand) | - | 7,90 | (100) |
1 Core headline earnings per share (CHEPS) adjusts the standard JSE definition of headline earnings for the impact of translation gains arising on the translation of monetary assets and liabilities to functional currency, market-to-market valuation of hedges, Sasol Khanyisa equity-settled share-based payments recorded in the income statement, LCCP losses during ramp-up and provision for significant tax litigation matters. This constitutes pro forma financial information and should be read in conjunction with the full announcement.
2 Adjusted EBITDA is calculated by adjusting EBIT for depreciation, amortisation, share-based payments, remeasurement items, movement in rehabilitation provisions due to discount rate changes, unrealised translation gains and losses, and unrealised gains and losses on hedging activities. This constitutes pro forma financial information and should be read in conjunction with the full announcement.
Net asset value | 2019 | 2018 | Change % |
Total assets (R million) | 469 968 | 439 235 | 7 |
Total liabilities (R million) | (244 173) | (210 627) | 16 |
Total equity (R million) | 225 795 | 228 608 | (1) |
Turnover (R million) | EBIT (R million) | |||
2018 | 2019 | 2019 | 2018(1) | |
19 797 | 20 876 | Mining | 4 701 | 5 244 |
4 198 | 5 184 | Exploration and Production International | (889) | (3 683) |
69 773 | 83 803 | Energy | 16 566 | 14 081 |
43 951 | 48 813 | Base Chemicals | (1 431) | 918 |
64 887 | 68 296 | Performance Chemicals | (7 040) | 7 853 |
52 | 78 | Group Functions | (2 210) | (6 666) |
202 658 | 227 050 | Group performance | 9 697 | 17 747 |
(21 197) | (23 474) | Intersegmental turnover | ||
181 461 | 203 576 | External turnover | ||
Balance sheet management
Cash generated by operating activities increased to R51 billion compared to R43 billion in the prior year. This was largely attributable to favourable Brent crude oil prices and the exchange rate, together with our strong working capital performance. These benefits were offset by softer chemical prices and losses attributable to the LCCP incurring costs with limited corresponding returns while in ramp-up phase.
Our net cash on hand position decreased from R17,0 billion to R15,8 billion as at 30 June 2019.
Actual capital expenditure, including accruals, amounted to R56 billion. This includes R30 billion (US$2,1 billion) relating to the LCCP. The higher LCCP capital cash flows and significant impairments recorded increased our gearing to 56,3%, which is above our previous market guidance of 44 – 49%.
We continue to actively manage the balance sheet with the objective of maintaining a robust liquidity position and a balanced debt maturity profile. Active balance sheet management will remain a key ongoing focus during this peak gearing phase.
During 2019, we refinanced the US$4 billion LCCP asset-based facility in two phases, initially by the issue of US$2,25 billion of US dollar-denominated bonds and thereafter by a US$1,8 billion 5-year bank loan financing (with a net debt: EBITDA covenant of 3,0 times).
The US dollar bond issue was Sasol's first such issuance since the inaugural US$1 billion 10-year bond issued in 2012. The issuance comprised a US$1,5 billion 5,5-year bond and a US$0,75 billion 10-year bond. This refinancing enabled Sasol to optimise our mix of funding instruments between bank loans and bond market, while at the same time extending the maturity of the debt profile from 2021 to as far out as 2028. An additional benefit of refinancing away from asset-based security was that S&P re-rated the 2012 bond back to the same investment grade level as Sasol Limited. The US$1,8 billion bank loan was closed in June 2019.
As part of the refinancing, we agreed with our lenders to amend the net debt: EBITDA covenant from 2,5 times to 3,0 times under the US$3,9 billion Revolving Credit Facility entered into in 2017. Our net debt: EBITDA at 30 June 2019 was 2,6 times, with the banks definition of net debt: EBITDA expected to range between 2,2 and 2,4 times, which remains well below the covenant.
In addition, in the domestic South African market, we have both bank loan facilities, and the R8 billion Domestic Medium Term Note Programme (DMTN) which was established in 2017. In August 2019 Sasol issued our inaugural paper to the value of R2,2 billion in the local debt market under the DMTN programme.
Another key element of financial market risk management is our hedging programme. We continue to make good progress with hedging our currency and ethane exposure. For further details of our open hedge positions we refer you to our Analyst Book (www.sasol.com). We will continue to hedge our net cash exposures for our balance sheet for 2020 and 2021 and will reduce our cover ratios once we are satisfied with the balance sheet's gearing levels.
In line with our capital allocation framework, we continue to hold a long-term commitment to maintain our investment grade credit ratings.
Dividend
After careful consideration of our current leverage and the volatility in the macroeconomic environment, the Board has made the decision to pass the final dividend to protect and strengthen our balance sheet. We continue to ensure that we deliver the key elements of our strategy, particularly the final completion of the LCCP. The Board may further consider the passing of the 2020 interim dividend based on the health of the balance sheet credit metrics at that stage.
Board activities
In May 2019, the Board commissioned an independent review into the circumstances that may have delayed the prompt identification and reporting of the LCCP cost and schedule overruns. The review has now been concluded. Management has determined that, as of 30 June 2019, the Company's internal control over financial reporting was ineffective due to the existence of a material weakness with respect to the capital cost estimation process implemented in connection with the LCCP, which resulted from the aggregation of a series of individual control and project-related control environment deficiencies, the remediation of which had not been fully implemented and validated as of year-end.
There were no restatements to earnings, financial position or cash flow. Please refer to the Company's announcement on 28 October 2019 for more information on the conclusions and remediation.
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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on or about 28 October 2019 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.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude: mmboe – million barrels oil equivalent.
All references to years refer to the financial year ended 30 June.
Any reference to a calendar year is prefaced by the word "calendar".
Comprehensive additional information is available on our website: www.sasol.com
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we use selected technologies to safely and sustainably source, produce and market chemical and energy products competitively to create superior value for our customers, shareholders and other stakeholders.
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-full-year-financial-results-to-30-june-2019-and-lccp-update-300946115.html
SOURCE Sasol Limited
Article Date
10/28/201910/28/2019 - SOL: Sasol Limited - Outcomes of the Independent Board Review and Executive Transition Plan
SOL: Sasol Limited - Outcomes of the Independent Board Review and Executive Transition Plan
Source: PR Newswire
JOHANNESBURG, Oct. 28, 2019 /PRNewswire/ -- Following the publication of revised guidance for the Lake Charles Chemicals Project (LCCP) on 22 May 2019, the Board of Directors (Board) of the Company commissioned an independent review (the Review), which was conducted by global consulting firms at the direction of external legal counsel.
The Company's announcement on 22 May 2019 set out the principal factors that had resulted in an increase in the LCCP capital cost guidance relative to the previous estimate that was issued on 8 February 2019:
1. Adjustments to the February 2019 cost forecast of approximately $530 million, comprising:
2. Additional events and remaining work impacting the February 2019 cost forecast of approximately $470 million, comprising:
3. A contingency amount for items that could impact the cost forecast of $300 million.
Additionally, throughout the LCCP, there have been adverse weather conditions and related productivity issues, including but not limited to the impacts of Hurricane Harvey in 2017.
Based on remediation measures taken, the Board is confident that the cost to completion estimate for the LCCP, confirmed by the Board's most recent assessment of LCCP management's reporting, is tracking the 22 May 2019 announced cost guidance range of between $12,6 billion and $12,9 billion. The Board also remains comfortable that the principal factors for the cost increase as identified in the 22 May 2019 market guidance are sound, and that criminal conduct is not one of those factors.
Outcomes of the Review
The purpose of the Review was to consider the circumstances that may have delayed the prompt identification and reporting of these developments, root causes, and the legal consequences thereof. The Review, which is legally privileged, has now been concluded.
The Board has made the following key conclusions:
Some of the driving factors behind the cost and schedule increases are common in projects of the size and nature of the LCCP, but some are shortcomings that may have been avoided.
In light of these findings, the Board has concluded that appropriate steps need to be taken to ensure appropriate accountability, to re-establish trust in the Company and its leadership, and to assist in promoting a culture of "constructive dialogue" across the organisation.
Specific Causal Factors
The Board has identified multiple causal factors that affected the prompt identification and reporting of the errors, omissions, and inaccuracies in the project cost estimate that underpinned the 8 February 2019 market guidance and which were described in the 22 May 2019 announcement. This was based on a substantial amount of independent work and included additional substantive and analytical testing procedures on LCCP capital expenditures, accruals, and associated transactions during the period 1 July 2017 to 30 June 2019.
The causal factors include:
It is the Board's assessment that the former leadership of the LCCP PMT's conduct was inappropriate, demonstrated a lack of competence, and was not transparent. These, coupled with governance shortcomings, were the primary factors in relation to the prompt identification and reporting of developments relating to the LCCP's costs and schedule between 1 January 2019 and 22 May 2019. The Board believes these factors compromised the ability of the various LCCP governance structures, including the Board in relation to LCCP matters, to perform their oversight role effectively on behalf of shareholders.
Remediation
A number of significant remediations and consequence management steps have already been implemented or initiated to hold the responsible individuals to account and to address the shortcomings identified during the Review. These include:
The Board believes, however, that further remedial steps are required to embed a new culture at all levels in the Company. At the leadership level, there needs to be more robust challenge of key decision making. At the LCCP, the Company's executive leadership placed too much trust in the PMT leadership. A spirit of "constructive dialogue" which includes empowering challenge and avoiding conformity, needs to extend though the Company so that people always feel able and free to speak up without fear for their prospects.
To address this, in addition to ongoing culture transformation initiatives, the Company intends to focus on promoting leaders who have demonstrated their ability to promote transparency and constructive dialogue.
Further Accountability Measures
With the LCCP now nearing completion, the Board firmly believes that this strategic project will soon start delivering significant strategic and financial benefits to our shareholders and other stakeholders, and will help Sasol to gain a competitive position in a growing international chemicals market.
However, it is a matter of profound regret for the Board that shortcomings in the execution of the LCCP have negatively impacted our overall reputation, led to a serious erosion of confidence in the leadership of the Company and weakened the Company financially. Sadly, the LCCP challenges have tarnished the entire Company, which has world-class assets and teams that have delivered a consistently strong performance.
The Board has resolved to ensure that the Company lives its values and to ensure that there is a culture of accountability and consequence management. It is also the judgment of the Board that, for trust to be restored in the Company, a leadership reset is required.
It is in this light that Mr. Bongani Nqwababa and Mr. Stephen Cornell, Joint CEOs, have agreed to an amicable mutual separation with the Company. Effective 31 October 2019, Bongani and Stephen will step down as Joint CEOs, and as executive directors of Sasol and its subsidiaries. To be clear, the Board has neither identified misconduct nor incompetence on the part of the Joint CEOs.
The Board has appointed Mr. Fleetwood Grobler, EVP: Chemicals, to assume the role of President and CEO and as an executive director, with effect of 1 November 2019.
Dr Mandla Gantsho, Chairman of Sasol, said: "I would like to thank Bongani and Stephen for their long and loyal service to Sasol, and for showing exemplary leadership by putting the interests of the company first in agreeing to step down to allow for a leadership reset."
Dr Gantsho added: "With Fleetwood assuming the role of President and CEO, Mr. Brad Griffith, currently Senior Vice President: Performance Chemicals, has been appointed as EVP: Chemicals with effect from 1 November 2019. Fleetwood will retain oversight responsibility over the final stages of LCCP, with the SVP currently responsible for the construction of the remaining units of the LCCP continuing to report to him."
Dr Gantsho also remarked: "With the Board Review completed, and key remedial actions already implemented or underway, Sasol is now focused on restoring trust and ensuring that it delivers value for all its stakeholders."
He concluded: "Sasol remains rooted in our South African heritage, and we are determined to transition towards a fully-fledged integrated international chemicals and energy company. With his background in both Synfuels and Chemicals business for over 35 years, Fleetwood enjoys the full confidence of the Board and is uniquely placed to lead the Company in the next phase of its value-based growth."
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
For Sasol Media Relations, please contact:
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27(0)10-344-6509
alex.anderson@sasol.com
Country | Board Review Call: 2:30pm SAST – 3:15pm SA (8:30am EST – 9:15am EST) Participant Dial-In Number | Results Conference Call: 3:30pm SA – 4:30pm SAST (9:30am EST – 10:30am EST) Participant Dial-In Number |
South Africa | +27 11 844 6054 | +1 412 317 6061 |
United Kingdom
| +44 (0)330 336 9105 | +1 412 317 6061 |
United States | +1 323-794-2551 | +1 888 317 6003 |
Singapore | +65 6320 9025 | +1 412 317 6061 |
Moscow, Russia
| +7 495 213 1767 | +1 412 317 6061 |
Toronto, Canada | +1 647 794 4605 | +1 866 605 3851 |
Passcode | 4608702 | 5196987 |
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited---outcomes-of-the-independent-board-review-and-executive-transition-plan-300946112.html
SOURCE Sasol Limited
Article Date
10/28/201910/28/2019 - Sasol Publishes Production and Sales Metrics for the Three Months Ended 30 September 2019
Sasol Publishes Production and Sales Metrics for the Three Months Ended 30 September 2019
Source: PR Newswire
JOHANNESBURG, Oct. 28, 2019 /PRNewswire/ -- Sasol has published its production and sales metrics for the three months ended 30 September 2019 on the Company's website at www.sasol.com, under the Investor Centre section or via this URL: http://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
Disclaimer - 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, expectations, 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative, our climate change strategy and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 and others are discussed more fully in our most recent annual report on Form 20-F filed on or about 28 October 2019 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.
For further information, please contact:
Sasol Investor Relations, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-publishes-production-and-sales-metrics-for-the-three-months-ended-30-september-2019-300946103.html
SOURCE Sasol Limited
Article Date
10/28/2019SOL: Sasol Limited - Timetable for Announcement of Outcome of Independent Board Review, Release of 2019 Annual Financial Results and Date of Annual General Meeting
Source: PR Newswire
JOHANNESBURG, Oct. 15, 2019 /PRNewswire/ -- Sasol shareholders are referred to the Company's announcements on 16 August 2019 and 6 September 2019 regarding the delay in the release of Sasol's annual results for the year ended 30 June 2019 (2019 financial results) and related year-end publications to allow for the completion of the independent review commissioned by the Sasol board of directors (the Board) in May 2019 (the Board Review).
Board Review
The report from the Board Review is complete and the Board will now consider the findings and determine any appropriate steps arising from these. The Board expects to make an announcement on these matters in due course.
Release of 2019 financial results and related year-end publications
The Company will release its 2019 financial results as well as its 2019 annual financial statements and other related year-end publications on Monday, 28 October 2019.
The JSE has been informed of Sasol's intention to release its 2019 financial results on 28 October 2019. Later today, the JSE will release an announcement, as it is obliged to do in terms of para 3.17(b) of its listings requirements, informing Sasol shareholders that the Company has not released its 2019 provisional financial results and annual financial statements in accordance with the JSE listings requirements and cautioning that Sasol's listing on the JSE is under threat of suspension and possible removal. An annotation to that effect will also be made on the JSE trading system, which will be removed as soon as Sasol's 2019 financial results and annual financial statements are released.
Annual general meeting
The annual general meeting of shareholders of Sasol will be held at 10:00 on Wednesday, 27 November 2019 at The Forum, The Campus, Wanderers Building, 57 Sloane Street, Bryanston, Johannesburg, South Africa, to transact the business stated in the notice of annual general meeting (AGM notice). The AGM notice, incorporating a summary of the 2019 annual financial statements will be published on the Sasol website and distributed to Sasol shareholders by 29 October 2019.
Disclaimer – 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:SOURCE Sasol Limited
Article Date
10/15/2019Sasol Announces Beneficial Operation of World-scale Louisiana Ethane Cracker
Source: PR Newswire
LAKE CHARLES, Louisiana, Aug. 28, 2019 /PRNewswire/ -- Sasol today announced our world-scale U.S. Ethane Cracker reached beneficial operation on 27 August 2019. Sasol's new Cracker, the heart of our Lake Charles Chemicals Project (LCCP), is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at our Lake Charles multi-asset site.
"The Cracker is the cornerstone of Sasol's transformation into a global chemicals company," said Sasol Joint President and Chief Executive Officer Stephen Cornell. "It solidifies our presence in the United States and will anchor our operations there for decades to come."
Sasol's Lake Charles Ethane Cracker, which uses Technip Stone & Webster technology, is one of the largest in the world with a nameplate capacity of 1.54 million tons per year. Approximately 90% of the Cracker's ethylene output will be further processed into commodity and high-margin specialty chemicals for markets in which Sasol has a strong position, underpinned by collaborative customer relationships.
The ethylene produced in the facility will be used in six downstream plants on site to produce a range of high-value derivatives including ethylene oxide, mono-ethylene glycol, ethoxylates, low density and linear low density polyethylene, and Ziegler and Guerbet alcohols. Sasol's customers use these products as ingredients in detergents, fragrances, metalworking and lubrication fluids, abrasives, paints and coatings, film, food packaging, personal care products and many more applications and end-markets. The remaining 10% of the ethylene will be sold on the merchant market and supply Sasol's share of our high-density polyethylene (HDPE) joint venture with INEOS in Texas.
The utilities and infrastructure systems that enable the entire project are fully operational. The Linear Low Density Polyethylene and Ethylene Oxide/Ethylene Glycol units achieved beneficial operation earlier this year. The Low Density Polyethylene unit is expected to achieve beneficial operation by November 2019, while the Ziegler Alcohol, Ethoxylates and Guerbet alcohol units are on track to achieve beneficial operation in early 2020.
"With the first three units commissioned, plants representing more than 60% of the project's total output are now online," said Sasol Joint President and Chief Executive Officer Bongani Nqwababa. "Our construction and commissioning teams are working flat out to deliver the rest of the units between November 2019 and by first quarter of 2020."
At present the Cracker continues to operate stably at a capacity utilisation of around 50%. The current output is utilised by the LCCP's downstream units and the remainder is sold to external customers. The company will continue to focus on improving the ethylene quality and ramp up the plant in accordance with our plans.
To date, the project has generated more than 800 full-time quality manufacturing jobs, with up to 6,500 people on site during construction, US$4 billion to Louisiana businesses and nearly US$200 million in local and state taxes.
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrate sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.
Forward looking statement:
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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) programme and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
View original content:http://www.prnewswire.com/news-releases/sasol-announces-beneficial-operation-of-world-scale-louisiana-ethane-cracker-300908532.html
SOURCE Sasol Limited
Article Date
8/28/20198/28/2019 - SOL: SASOL LIMITED: Lake Charles Chemicals Project (LCCP) Ethane Cracker Unit Achieves Beneficial Operation
SOL: SASOL LIMITED: Lake Charles Chemicals Project (LCCP) Ethane Cracker Unit Achieves Beneficial Operation
Source: PR Newswire
JOHANNESBURG, Aug. 28, 2019 /PRNewswire/ -- In our announcement of 26 August 2019, we confirmed that the 72-hours beneficial operation production test run on the LCCP's Ethane Cracker was at the halfway mark. This test run has now been completed and we have achieved beneficial operation of the unit.
The plant continues to operate stably at a capacity utilisation of around 50%. The current output is utilised by our downstream units and the remainder is sold to external customers. We continue to focus on improving the ethylene quality and ramp up the plant in accordance with our plans.
Disclaimer – 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-lake-charles-chemicals-project-lccp-ethane-cracker-unit-achieves-beneficial-operation-300908510.html
SOURCE Sasol Limited
Article Date
8/28/20198/26/2019 - SOL: SASOL Limited: Update on Sasol's Lake Charles Chemicals Project (LCCP) Ethane Cracker Unit
SOL: SASOL Limited: Update on Sasol's Lake Charles Chemicals Project (LCCP) Ethane Cracker Unit
Source: PR Newswire
JOHANNESBURG, Aug. 26, 2019 /PRNewswire/ -- As noted in our 16 August 2019 communication, a problem relating to a large heat exchanger on our Ethane Cracker which interrupted the start-up for several days was successfully resolved and start-up resumed.
We are currently halfway through achieving our 72 hour beneficial operation production test run on the Ethane Cracker.
On 24 August 2019, we reached the important milestone of producing ethylene at the LCCP that meets the feedstock requirements of some of our downstream units. However, the ethylene produced is marginally below polymer grade specification due to the acetylene reactor system that is not performing as expected. Efforts to upgrade ethylene to polymer grade specification are underway with the support of the catalyst supplier and the technology licensor.
We are currently operating the plant stably at a capacity utilisation of around fifty percent which is in line with our ramp-up plan. The ability to manage our facilities and meet our production needs in the US as an integrated site, now allows us the flexibility to consume this ethylene produced internally and to place it externally.
The further ramp up in volumes will be executed as these current operational issues are resolved.
The completion of all other downstream derivative units has continued to advance. However, schedule pressure is evident in most areas and the latest forecast for beneficial operation dates of the units is provided below:
Low Density Polyethylene | November 2019 (previously mid October 2019) |
Ziegler | January 2020 (previously January 2020) |
Ethoxylates | January 2020 (previously December 2019) |
Guerbet | March 2020 (previously February 2020) |
As a consequence of these technical issues and the revised beneficial operation dates, the LCCP earnings before interest, tax, depreciation and amortisation (EBITDA) guidance for the 2020 financial year has been adjusted from US$300-350 million to US$150-300 million.
Notwithstanding the revisions to the beneficial operation dates, the cost guidance for the LCCP of US$12,6-12,9 billion remains unchanged. We remain confident that the incremental costs resulting from the delay can be absorbed within the existing base cost and contingency buffer.
Disclaimer – 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-update-on-sasols-lake-charles-chemicals-project-lccp-ethane-cracker-unit-300906874.html
SOURCE Sasol Limited
Article Date
8/26/2019SOL: Sasol Limited Response to Investor Enquiries
Source: PR Newswire
JOHANNESBURG, Aug. 21, 2019 /PRNewswire/ -- In Sasol's announcement of 16 August 2019, the Company informed investors of the delay of the release of its 2019 financial results and related suite of reports. This will allow for the completion of management's assessment and remediation of possible control weaknesses followed by the consideration of these assessments by Sasol's external auditors.
As is normal practice, the Company has engaged with investors and analysts in response to the announcement. Sasol confirms that no material or price sensitive information other than that contained in the announcement was discussed in any of these engagements.
Request for clarification may be directed to our investor relations team on investor.relations@sasol.com or +27(0)10-344-9280.
Disclaimer - 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
Contact:
Investor Relations:
Feroza Syed, Chief Investor Relations Officer
Telephone: +27(0)10-344-7778
View original content:http://www.prnewswire.com/news-releases/sol-sasol-limited-response-to-investor-enquiries-300904968.html
SOURCE Sasol Limited
Article Date
8/21/2019Update on Sasol Board Review, Delay of the Financial Results Announcement and Update on the Lake Charles Chemicals Project
Source: PR Newswire
JOHANNESBURG, Aug. 16, 2019 /PRNewswire/ -- In the Company's Trading Statement of 25 July 2019, updated guidance was provided on the independent review commissioned by the Board to ascertain the factors that impacted the cost and schedule changes for the Lake Charles Chemicals Project (LCCP).
A preliminary report from the independent review was presented to the Board on 14 August 2019. The report contains observations which point to possible LCCP control weaknesses. Management and the Board will assess such control weaknesses and identify whether any further remedial actions are required. In addition, the Company's auditors are required to consider these assessments in terms of International Standards on Auditing and the Auditing Standards of the Public Company Accounting Oversight Board.
As a consequence, the Board has decided to delay the announcement of Sasol's 2019 financial results until the independent review and external audit has been completed. The Board therefore expects to announce the 2019 financial results on 19 September 2019. At that time, Sasol will also release its suite of reports including the Annual Financial Statements, Annual Integrated Report, Sustainable Development Report, Climate Change Report and Annual Report on Form 20-F.
Notwithstanding the independent review, the Board remains confident that the guidance on the earnings ranges provided in the Trading Statement and the previous cost guidance for the LCCP of US$12,6-12,9 billion remain unchanged.
LCCP UPDATE
Sasol provided an update on the LCCP in its Trading Statement of 25 July 2019, in which the Company stated that beneficial operation of the Ethane Cracker was expected at the end of July 2019 or soon thereafter.
The final stages of the Ethane Cracker startup were initiated in July 2019. As is often the case with major plant startups, a technical challenge relating to a large heat exchanger was encountered. As a result, the Cracker startup was interrupted for several days to resolve this issue. The startup has now resumed and an update on the achievement of beneficial operation will be provided on or before 26 August 2019.
Disclaimer - 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27 (0) 10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/update-on-sasol-board-review-delay-of-the-financial-results-announcement-and-update-on-the-lake-charles-chemicals-project-300902882.html
SOURCE Sasol Limited
Article Date
8/16/2019Trading Statement and LCCP Update for the Financial Year Ended 30 June 2019
Source: PR Newswire
JOHANNESBURG, July 25, 2019 /PRNewswire/ --
Trading Update
Sasol's foundation business is expected to deliver resilient results with a strong volume, cost and working capital performance, despite a weak macroeconomic environment resulting in lower chemical prices and petrol differentials.
There are a number of non-cash adjustments to the results which will result in a decrease in earnings per share. The largest of these were the sizable impairments of relevant cash generating units (CGUs) due to the softer outlook for global chemical and gas prices and the higher capital spend on the Lake Charles Chemicals Project (LCCP). In addition, as the LCCP progresses through the sequential beneficial operation schedule, the costs associated with relevant units are expensed while the gross margin contribution follows the ramp-up profile and inventory build.
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA*) is expected to decline by between 4% and 14% compared to R51,5 billion in the prior year, despite the 19% increase in the rand per barrel price of Brent crude oil. This is mainly as a result of the negative EBITDA contribution from the LCCP and the impact of softer chemical margins.
Headline earnings per share (HEPS) for the financial year ended 30 June 2019 is expected to increase by between 7% and 17% (approximating R1,92 to R4,66 per share) compared to the prior year HEPS of R27,44. Core headline earnings per share (CHEPS**) is expected to increase by between 1% and 11% (approximating R0,36 to R4,00 per share) compared to the CHEPS for 2018 of R36,38. CHEPS is adjusted for once-off items, which includes operating losses from the LCCP during ramp-up.
Earnings per share (EPS) for the 2019 financial year is expected to decrease by between 46% and 56% (approximating R6,56 to R7,99 per share) from the prior year EPS of R14,26 as a result of higher impairments recorded in the financial year.
Sasol´s earnings for the financial year ended 30 June 2019 have been significantly impacted by the following remeasurement items before tax:
Given the above financial performance, our gearing is expected to increase above our previous market guidance of 49%, however we expect the net debt to EBITDA to remain well below our debt covenant level of 3,0 times. We continue to progress our asset portfolio optimisation strategy, with further details to be provided during the results announcement.
A detailed production summary and key business performance metrics for the financial year for all of our businesses, including our hedging activities, is available on our website, www.sasol.com. The salient features are:
We are also pleased to report that agreement has been reached with the South African Revenue Services to withdraw all the issued and pending assessments for the crude oil procurement matter relating to Sasol Oil for financial years 1999 to 2016.
Lake Charles Chemicals Project (LCCP) update
The LCCP remains in line with the revised cost estimate provided in May 2019 and is mostly tracking schedule. As at the end of June 2019, overall project completion is at 98%. Engineering and procurement activities are substantially complete and construction progress is at 94%. The Ethane Cracker start-up sequence has commenced and we expect beneficial operation (BO) by the end of July or shortly thereafter. We are experiencing some schedule pressure on the Low Density Polyethylene (LDPE) plant and expect BO to be delayed by four to six weeks as it has taken longer than planned to complete the construction, as well as the cleaning and preparation of critical equipment. While the Ethoxylates (ETO) and Guerbet plants are currently tracking schedule as previously announced, the Ziegler unit BO is expected to be delayed by four to eight weeks mainly due to slower piping hydro-testing completion. Mitigation plans are in place to minimise the delay to the maximum extent possible.
When updated guidance was provided on the LCCP in May 2019, it was announced that the Board was to undertake an independent review on the project. The review is ongoing and is conducted by independent external experts. It is an in depth exercise entailing the review of a voluminous amount of documents and numerous interviews. As a result, it is anticipated that a report on this review will be submitted to the Board by the end of August 2019. The Board will be convened shortly thereafter to consider the report, following which an update will be provided.
All references to years refer to the financial year ended 30 June.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sasol's financial results for the financial year ended 30 June 2019 will be announced on Monday, 19 August 2019.
* Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation, share-based payments, remeasurement items, change in discount rates of our rehabilitation provisions, unrealised translation gains and losses, and unrealised gains and losses on our hedging activities.
** Core HEPS is calculated by adjusting headline earnings with once-off items, period close adjustments and depreciation and amortisation of capital projects (exceeding R4 billion) which have reached beneficial operation and are still ramping up, and share-based payments on implementation of B-BBEE transactions. Period close adjustments in relation to the valuation of our derivatives at period end are to remove volatility from earnings as these instruments are valued using forward curves and other market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of the group's sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of the directors of Sasol. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Sasol's financial position, changes in equity, results of operations or cash flows.
Disclaimer - 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27 (0) 10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/trading-statement-and-lccp-update-for-the-financial-year-ended-30-june-2019-300890890.html
SOURCE Sasol Limited
Article Date
7/25/2019Sasol Celebrates Opening of New Alkoxylation Plant in China
Source: PR Newswire
NANJING, China, July 10, 2019 /PRNewswire/ -- Sasol Limited, an international integrated chemicals and energy company, today announced the opening of its new alkoxylation plant in Nanjing. This facility – the company's largest expansion project in China – will more than double its alkoxylation production capacity in the region and will be supported by growing research and development and technical customer support capabilities.
Mr Bongani Nqwababa, Joint President and CEO of Sasol, Ms. Debora Balatseng, Charge'd Affairs of South African Embassy in China, and Ms. Mpho Hlahla, Consul General Shanghai, South African Consulate-General, attended the ribbon-cutting ceremony to celebrate this milestone achievement. Chinese government officials in attendance at the ceremony included Mr. Zhou Jinliang, Executive Deputy Director of Nanjing Jiangbei New Area Administrative Committee, and Mr. BIAN Zhongwu, Director of Nanjing Jiangbei New Materials High-Tech Park, along with other Sasol executives and employees, business partners and customers.
"Our expansion in China underpins our chemicals business ambitions to diversify geographically, participate in high-growth markets and grow in differentiated applications. For more than 25 years, we have been active in providing high-quality surfactants in China, where we see ongoing shifts towards high value and differentiated segments," said Nqwababa.
"I am confident this expansion will enable us to better support local customer requirements and our pursuit for continued long-term growth in the world's most important emerging market," he added.
Located at the Nanjing Jiangbei New Material Hi-Tech Park (formerly known as Nanjing Chemical Industrial Park), construction of this 35-acre site commenced in June 2017 and the plant reached beneficial operation in April this year. The plant will expand Sasol's current alkoxylation capability to approximately 150 kilotons per annum (ktpa), with additional facilities for the production of anionic surfactants.
The new plant can operate using either branched or linear alcohols to meet the differentiated customer requirements in applications such as detergents, personal care, textile and leather, metalworking and lubrication, inks, paints and coatings, as well oil and gas, enhanced oil recovery and industrial cleaning.
As the first fully Sasol-owned production facility in Asia, Sasol has been a producer of surfactants, including non-ionic alcohol ethoxylates as well as anionic alcohol ether sulfates, in China since 1992. The project is not only a significant expansion of Sasol's current operational footprint in the market, but also the first step towards a robust, differentiated expansion strategy for Sasol's Performance Chemicals business throughout the broader Asian region.
"Comprising state-of-the-art process technology, the plant will operate to the highest standards of operational safety, reliability and flexibility. Furthermore, this technology allows us to minimise environmental impacts in full compliance with stringent environmental protection measures set by the government," said Shentu Hongxing, Vice President Operations China and Managing Director Sasol China. "We look forward to making a larger contribution to both the regional economy and a greener environment – all while continuing to serve our customers with high quality tailored solutions."
About Sasol
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrated sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels.
Issued by:
Matebello Motloung, Senior Specialist: Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 82 773 9457
matebello.motloung@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-celebrates-opening-of-new-alkoxylation-plant-in-china-300882669.html
SOURCE Sasol Limited
Article Date
7/10/2019Sasol Signs US$1,8 Billion Senior Credit Facilities
Source: PR Newswire
JOHANNESBURG, June 7, 2019 /PRNewswire/ -- Sasol Limited ("Sasol") announced today that its wholly owned subsidiary Sasol Financing USA LLC (the "Borrower") has entered into new $1,8 billion US dollar-denominated senior unsecured credit facilities, comprised of a $1,65bn term loan facility (the "Term Loan") and a $150m revolving credit facility (the "RCF", and together with the Term Loan, the "Facilities"). The Facilities, which have a tenor of five years, will be used to refinance in full the outstanding Lake Charles Chemical Project asset finance loan.
Bank of America Merrill Lynch, Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation were mandated as Global Coordinators, Bookrunners and Mandated Lead Arrangers for the transaction, which was syndicated to a targeted group of relationship banks.
Along with the Bookrunners, there were two other Mandated Lead Arrangers: BNP Paribas S.A. and Industrial and Commercial Bank of China Limited, London Branch.
Bank of China Limited, Johannesburg Branch, China Construction Bank, Johannesburg Branch, Citibank, N.A., Intesa Sanpaolo S.p.A., New York Branch, J.P. Morgan Securities plc and MUFG joined as Lead Arrangers.
Rothschild & Co and Identity Advisory acted as Independent Financial Advisors to Sasol in respect of the transaction.
View original content:http://www.prnewswire.com/news-releases/sasol-signs-us1-8-billion-senior-credit-facilities-300863826.html
SOURCE Sasol Limited
Article Date
6/7/2019Sasol Limited: Sasol Achieves Beneficial Operation of Second Lake Charles Chemicals Project Production Unit; Ratings and Funding Covenant Update
Source: PR Newswire
JOHANNESBURG, June 3, 2019 /PRNewswire/ -- Sasol provided an update on the Lake Charles Chemicals Project (LCCP) in an announcement on 22 May 2019. The announcement included reference to the fact that beneficial operation of the Ethylene Glycol (EG) facility had been achieved, with the beneficial operation of the Ethylene Oxide (EO) facility expected within days.
Sasol is pleased to announce that the EO facility achieved beneficial operation on 31 May 2019. The combined EO/EG unit is the second of the seven LCCP production units to come online.
Management continues to take actions to mitigate the impact of LCCP's revised capital cost on the business, whilst ensuring these actions do not adversely impact Sasol's long term sustainability. Sasol still expects peak gearing in FY19 and with net debt to EBITDA for FY19 remaining within the 2,0 – 2,3x guidance range. The net debt to EBITDA covenant applicable to the $3,9bn Revolving Credit Facility has been amended from 2,5x to 3,0x.
Following the LCCP announcement, Standard & Poor's and Moody's both affirmed Sasol's investment grade rating, with Moody's amending its outlook to negative.
Disclaimer – 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, cost estimates and expected timing of beneficial operation of LCCP, targets or guidance regarding our gearing ratio and dividend pay-out ratio, net debt-to-EBITDA ratio, EBITDA and internal rate of return for LCCP, as well as statements regarding our future liquidity, credit ratings and non-core asset disposal strategy. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
feroza.syed@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-sasol-achieves-beneficial-operation-of-second-lake-charles-chemicals-project-production-unit-ratings-and-funding-covenant-update-300860406.html
SOURCE Sasol Limited
Article Date
6/3/2019Sasol Limited: Update on the Lake Charles Chemical Project
Source: PR Newswire
JOHANNESBURG, May 22, 2019 /PRNewswire/ -- Sasol has today updated its guidance for LCCP following a review process to assess the project costs and schedule.
BACKGROUND
In the Company's trading statement, released by the Stock Exchange News Service on 8 February 2019, updated guidance was provided for LCCP's schedule and capital costs, which were estimated in the range of $11,6 - $11,8 billion. Following this announcement a number of changes were made to the management of LCCP, with project accountability immediately reassigned to the Executive Vice President of Chemicals, Fleetwood Grobler and the strengthening of our project controls organisation.
This team became concerned regarding the accuracy of the project's cost forecast and, as a consequence, our third quarter Business Performance Metrics announcement in April 2019 indicated that the LCCP's cost was tracking the upper end of the range. Management also initiated a full review of the costs and schedule until project completion with input from independent technical and financial advisers.
This review identified significant additional concerns related to the LCCP forecasting process and a marked increase in the projected total cost. The review also confirmed that the actual project expenditure as at 31 December 2018 amounting to $10,9 billion was accurate and complete. Weaknesses in the project's integrated controls were identified and are being remediated.
The Board has also commissioned a review to be conducted by independent external experts. This review will cover the circumstances that may have delayed the prompt identification and reporting of the above-mentioned matters. Upon conclusion of the review the Board will take appropriate action to address the findings.
UPDATE ON KEY PROJECT PARAMETERS
The first derivative unit, Linear Low Density Polyethylene (LLDPE), achieved beneficial operation on 13 February 2019 and the plant continues to ramp up in line with expectations. We have achieved beneficial operation of the Ethylene Glycol unit (EG), with beneficial operation of the Ethylene Oxide unit (EO) expected in the coming days. The Ethane Cracker is still expected to achieve beneficial operation in July 2019. The remainder of the LCCP schedule for beneficial operation is as previously indicated in February 2019 apart from the beneficial operation of the last derivative plant (Guerbet unit), which is expected to be one month later in February 2020. As of the end of March 2019, overall project completion was at 96%, with construction completion at 89% and capital expenditure on the project amounted to $11,4 billion.
Following the review noted above, the cost estimate for LCCP has been revised to a range of $12,6 – $12,9 billion which includes a contingency of $300 million. The principal factors that impacted the revised cost estimate to complete LCCP are adjustments to the February 2019 cost forecast of approximately $530 million and additional events and remaining work impacting February 2019 cost forecast – approximately $470 million. A contingency of $300 million has also been included.
ACTIONS TAKEN TO DATE
This increase in the anticipated LCCP capital costs is extremely disappointing. Executive management has implemented several changes since February 2019 to further strengthen the oversight, leadership for the project and frequency of reporting. Actions include segregation of duties between project controls and finance functions and assigning a Senior Vice President to have responsibility for the LCCP project controls. Initiatives to improve decision making, transparency and documentation within the project management team are also in progress. The new project leadership has been instrumental in identifying and remediating these issues.
The reviews and investigations initiated by management to date indicate that the underlying control weaknesses are limited to LCCP.
FINANCIAL IMPACT
The increase in the LCCP's cost does not alter Sasol's capital allocation strategy. The plan remains to reduce balance sheet gearing towards 30% followed by an increase in the dividend pay-out ratio to 40% and remains on track to occur between financial years 2020 to 2023. Over this period the anticipated contribution from the LCCP has been negatively impacted by a change in the short and medium term pricing outlook. Operating costs for the LCCP, although projected to be slightly elevated during start-up, are otherwise still in line with previous guidance. As a result the earnings before interest, tax, depreciation and amortisation (EBITDA) for financial year 2022 of $1,3 billion have been revised to approximately $1 billion. The long term market pricing outlook is still in support of a long term run rate EBITDA contribution from the LCCP of $1,3 billion. The short term market outlook for ethane and product pricing remains volatile and estimates will be updated periodically.
As previously communicated to the market, management has substantially completed the detailed asset review programme. This process forms a key part of the portfolio optimisation strategy, and has now progressed to the stage where the disposal of larger non-core assets can be accelerated. The Company will target the disposal of assets which have an aggregate net asset value exceeding $2 billion. The safeguarding value will be prioritised through this process, and the financial metrics disclosed above do not rely on any asset disposals. Relevant disposals will therefore further support the deleveraging of the balance sheet, as well as simplification of the investment portfolio and increased focus in executing our value based strategy.
Disclaimer – 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, cost estimates and expected timing of beneficial operation of LCCP, targets or guidance regarding our gearing ratio and dividend pay-out ratio, net debt-to-EBITDA ratio, EBITDA and internal rate of return for LCCP, as well as statements regarding our future liquidity, credit ratings and non-core asset disposal strategy. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrated sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.
View original content:http://www.prnewswire.com/news-releases/sasol-limited-update-on-the-lake-charles-chemical-project-300854882.html
SOURCE Sasol Limited
Article Date
5/22/2019Sasol Limited: Update on the Lake Charles Chemicals Project ('LCCP')
Source: PR Newswire
JOHANNESBURG, May 22, 2019 /PRNewswire/ -- In the Company's trading statement, released by the Stock Exchange News Service on 8 February 2019, updated guidance was provided for the LCCP's schedule and capital costs, which were estimated in the range of $11,6 to $11,8 billion. Following this announcement a number of changes were made to the management of the LCCP, with project accountability immediately reassigned to the Executive Vice President of Chemicals, Fleetwood Grobler and the strengthening of our project controls organisation.
This team became concerned regarding the accuracy of the project's cost forecast and, as a consequence, our third quarter Business Performance Metrics announcement in April 2019 indicated that the LCCP's cost was tracking the upper end of the range. Management also initiated a full review of the costs and schedule until project completion with input from independent technical and financial advisers.
This review identified significant additional concerns related to the LCCP forecasting process and a marked increase in the projected total cost. The review also confirmed that the actual project expenditure (as at 31 December 2018) amounting to $10,9 billion was accurate and complete. Weaknesses in the project's integrated controls were identified and are being remediated.
The Board has also commissioned a review to be conducted by independent external experts. This review will cover the circumstances that may have delayed the prompt identification and reporting of the above-mentioned matters. Upon conclusion of the review, the Board will take appropriate action to address the findings.
Update On Key Project Parameters
Following the review noted above, the cost estimate for the LCCP has been revised to a range of $12,6 to $12,9 billion which includes a contingency of $300 million. The principal factors that impacted the revised cost estimate to complete the LCCP are as follows:
1. Adjustments to the February 2019 cost forecast – approximately $530 million
2. Additional events and remaining work impacting February 2019 cost forecast - approximately $470 million
Ethane Cracker, EO/EG and Utilities - approximately $210 million:
Remaining Work – primarily Low Density Polyethylene and Ziegler / Alumina / Guerbet units - approximately $260 million
3. A contingency amount for items that could impact the cost forecast - $300 million
Actions Taken to Date
This increase in the anticipated LCCP capital costs is extremely disappointing. Executive management has implemented several changes since February 2019 to further strengthen the oversight, leadership for the project and frequency of reporting. Actions include segregation of duties between project controls and finance functions and assigning a Senior Vice President to have responsibility for the LCCP project controls. Initiatives to improve decision making, transparency and documentation within the project management team are also in progress. The new project leadership has been instrumental in identifying and remediating these issues.
The reviews and investigations initiated by management to date indicate that any impact on the underlying controls are limited to the LCCP.
Financial Impact
The increase in the LCCP's cost does not alter Sasol's capital allocation strategy. The plan remains to reduce balance sheet gearing towards 30% followed by an increase in the dividend pay-out ratio to 40% and remains on track to occur between financial years 2020 to 2023. Over this period the anticipated contribution from the LCCP has been negatively impacted by a change in the short and medium term pricing outlook. Operating costs for the LCCP, although projected to be slightly elevated during start-up, are otherwise still in line with previous guidance. As a result the earnings before interest, tax, depreciation and amortisation (EBITDA) for financial year 2022 of $1,3 billion have been revised to approximately $1 billion. The long term market pricing outlook is still in support of a long term run rate EBITDA contribution from the LCCP of $1,3 billion. The short term market outlook for ethane and product pricing remains volatile and estimates will be updated periodically.
In light of the increase in capital costs as well as the latest market pricing outlook, the forecast internal rate of return for the LCCP has declined from 7,5% to 6,0 - 6,5%. The larger part of this move comes from the change in chemical pricing assumptions given that a US10 cents change in ethane pricing impacts the EBITDA by approximately $150 million per annum.
The increased capital cost will result in the gearing level for Sasol remaining elevated for 18 to 24 months. Based on current assumptions, peak gearing is still expected to occur during financial year 2019 with forecast net debt to EBITDA remaining within the 2,0 to 2,3x guidance range. The Company's balance sheet continues to be actively managed in order to maintain a robust liquidity position and debt maturity profile. As part of this the Company recently issued a $2,25 billion bond which was used to partly settle the LCCP's project asset finance facility. The Company has been successful in extending the maturity profile of the debt portfolio over the last few years with the first significant repayment due in 3,5 years (November 2022). Efforts to further to optimise the maturity profile continue as the Company executes its value based strategy and moves towards targeted gearing levels. Retaining the Company's investment grade credit rating remains a priority.
Several additional management actions have been identified and are in the process of being implemented in an effort to conserve cash over the following 12 to18 months. These actions are focussed on further cash fixed cost savings, capital portfolio optimisation, working capital improvements and asset disposals at value.
As previously communicated to the market, management has substantially completed the detailed asset review programme. This process forms a key part of the portfolio optimisation strategy, and has now progressed to the stage where the disposal of larger non-core assets can be accelerated. The Company will target the disposal of assets which have an aggregate net asset value exceeding $2 billion. The safeguarding of value will be prioritised through this process, and the financial metrics disclosed above do not rely on any asset disposals. Relevant disposals will therefore further support the deleveraging of the balance sheet, as well as simplification of the investment portfolio and increased focus in executing our value based strategy.
The financial information on which the LCCP update is based has not been reviewed or reported on by the Company's external auditors.
The Joint Chief Executive Officers will host two webcast /conference calls on 22 May 2019:
https://www.sasol.com/investor-centre/lake-charles-chemicals-project/update-may-2019
The first call will begin at 08:30 (SA), 06:30 (GMT) and 01:30 (CST) on 22 May 2019
Conference ID | 3862023 |
Money Center and Conference ID | Participant Number |
South Africa, Johannesburg | +27 11 844 6054 |
United Kingdom | +44 (0)330 336 9105 |
United States | +1 323-794-2551 |
Singapore | +65 6320 9025 |
Moscow, Russia | +7 495 213 1767 |
Toronto, Canada | +1 647 794 4605 |
The second call will begin at 14:30 (SA), 12:30 (GMT) and 07:30 (CST) on 22 May 2019
Conference ID | 7019987 |
Money Center and Conference ID | Participant Number |
South Africa, Johannesburg | +27 11 844 6054 |
United Kingdom | +44 (0)330 336 9105 |
United States | +1 323-794-2423 |
Singapore | +65 6320 9025 |
Moscow, Russia | +7 495 213 1767 |
Toronto, Canada | +1 647 484 0478 |
Disclaimer – 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, cost estimates and expected timing of beneficial operation of LCCP, targets or guidance regarding our gearing ratio and dividend pay-out ratio, net debt-to-EBITDA ratio, EBITDA and internal rate of return for LCCP, as well as statements regarding our future liquidity, credit ratings and non-core asset disposal strategy. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
Media Contact:
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-update-on-the-lake-charles-chemicals-project-lccp-300854855.html
SOURCE Sasol Limited
Article Date
5/22/2019Sasol Publishes Production and Sales Metrics for the Nine Months Ended 31 March 2019
Source: PR Newswire
JOHANNESBURG, April 18, 2019 /PRNewswire/ -- Sasol has published its production and sales performance metrics for the nine months ended 31 March 2019 on the Company's website at www.sasol.com, under the Investor Centre section or via this URL: https://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics
Overview
Sasol delivered an improved quarterly production and sales performance. Our production volumes have stabilised post the total West factory shutdown at our Secunda Synfuels Operations (SSO) during the first half of FY19. Our Lake Charles Chemicals Project (LCCP) is progressing with the continued ramp-up of the linear low density polyethylene (LLDPE) unit, following the achievement of beneficial operation (BO) of this unit in February 2019.
Operating Business Units
Mining productivity continues to track towards targeted productivity levels. Our productivity rate improved by 10% from the previous year to 1 170 t/cm/s for the period ending 31 March 2019 and our stock piles have been managed optimally to fully meet internal customer demand. Current indications are that Mining will achieve production levels of approximately 38 million tons for the full year, aligned to the requirements of our value chain customers. At our Mozambican upstream operations, we delivered a robust production performance, in line with expectations. We expect to achieve our production target of between 114 - 118 bscf for FY19.
Regional Operating Hubs
Secunda Synfuels Operations (SSO) maintained stable production in Q3 FY19, continuing to support a normalised run-rate of 7,8 million tons per annum. Stable production at SSO has enabled us to offset the previously reported 6% reduction in production volumes for the 1H FY19, now resulting in a 3% reduction in volumes compared to the prior year. We expect to achieve the upper end of our planned production targets of 7,5 - 7,6 million tons for the year. In Sasolburg, Natref continued with its improved performance and achieved a production run rate of 636m³/h for FY19 year to date, and our Sasolburg operations continue to deliver stable production post the planned shutdowns. In Europe, our operations were negatively impacted by a force majeure on external ethylene supplies into our Marl site, resulting in a reduction in production volumes for FY19 year to date.
Strategic Business Units
Our Energy business exceeded our prior period liquid fuels sales volumes by 4%, enabled through higher SSO and Natref production. We remain on track to achieve the upper end of our previous sales volumes market guidance of approximately 57 - 58 million barrels. We are pursuing our retail strategy and opened five new Retail Convenience Centres (RCCs) and divested from four non-profitable RCCs year to date. We continue to target 15 new RCCs for the financial year. ORYX GTL achieved an average utilisation rate of 86%, as a result of the extended shutdown.
Base Chemicals delivered a strong performance in Q3 FY19 which resulted in a 9% improvement in volumes compared to Q2 FY19. The Base Chemicals business (excluding US produced products) achieved a 6% improvement in volumes compared to Q2 FY19 post the extended SSO shutdowns during 1H FY19. This was enabled by largely stable operations at our production facilities in South Africa. At our US Polymers businesses, the high density polyethylene (HDPE) plant continues to ramp up production during this financial year and the plant is expected to achieve an average utilisation rate of 80 - 90% for the full year. Our new LLDPE plant, one of the LCCP units, reached beneficial operation during Q3 FY19 and management continues to focus on the successful ramp-up of the plant. Notwithstanding the 6% decrease year to date in overall Base Chemicals sales volumes compared to the prior year, we maintain our expectation that our annual sales volumes (excluding US produced products) will be 1% lower compared to the previous financial year.
Performance Chemicals sales volumes increased by 4% quarter on quarter but decreased by 4% compared to the prior year, mainly due to the force majeure in Europe in Q2 FY19, planned shutdowns and a softer macro-environment in Europe and Asia. As a consequence of a slower recovery from unplanned supply constraints, we expect our sales volumes for the full year to be 1 - 2% below the previous year (excluding LCCP). In Rand terms, we have seen continued strong margins over the reporting period.
Lake Charles Chemicals Project (LCCP)
At Lake Charles, we continue to focus on safely improving productivity in the field and bringing the plants to mechanical completion and then beneficial operation. The project continued with its exceptional safety record with a RCR of 0,11. Overall project completion is at 96%. We are tracking the schedule and the upper end of the cost estimate provided to the market in February 2019. We expect the Ethylene Oxide / Ethylene Glycol unit to reach beneficial operation in June 2019 as per previous guidance.
Market Performance
During the period ending 31 March 2019, we experienced higher average crude oil prices compared to the prior year, which benefitted our Energy business. This was offset by weaker refining margins, due to lower petrol differentials. Our chemicals businesses are experiencing softer prices in some end-markets. The group benefitted from the weaker exchange rate during the period ending 31 March 2019 compared to the prior year.
Conclusion
Overall, operational stability has been restored as we head towards the end of the financial year. SSO's current production levels support a normalised run-rate of 7,8 million tons per annum. We have revised our ORYX average utilisation rate for the year down to 83%. Performance Chemicals sales volumes have been revised to 1 - 2% lower than the prior year (excluding LCCP). We have optimised our sales plans with the aim of recovering the volumes lost as a result of the shutdowns and external supply constraints.
Disclaimer - 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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
For further information, please contact:
Investor Relations:
Feroza Syed
Chief Investor Relations Officer
Telephone: +27(0)10-344-7778
View original content:http://www.prnewswire.com/news-releases/sasol-publishes-production-and-sales-metrics-for-the-nine-months-ended-31-march-2019-300834461.html
SOURCE Sasol Limited
Article Date
4/18/2019Sasol Officially Opens Another Coal Mine, Sustaining Jobs
Source: PR Newswire
JOHANNESBURG, April 12, 2019 /PRNewswire/ -- Sasol has officially opened yet another colliery in its host province of Mpumalanga, where it beneficiates coal into high value fuel and chemical products at world scale.
Meaning 'success' in isiZulu, Impumelelo is one of three world-class mines Sasol has constructed in the last decade as part of its R14 billion mine replacement programme and includes Thubelisha and Shondoni. The inauguration was attended by Minerals Resources Minister Gwede Mantashe.
With an investment of R5, 6 billion, Impumelelo will have the capacity to produce 10,5 million tons per annum. The colliery currently employs 1760 people, most of them from nearby communities in Mpumalanga.
"In addition to sustaining some 4000 jobs, the new mines are critical to securing coal supply to Sasol Secunda Synfuels Operations up to at least 2050," said Sasol Joint President and CEO Bongani Nqwababa.
A unique feature of the mines is the investment in technologically-advanced measures that Sasol has made to ensure the safety of its employees as well as the environment.
"These include Proximity Detection Systems on our production electrical trackless machines, which warn and eventually stop the machine from operating when a person is too close," said Nqwababa.
Another technology measure that the mines have is an electronic trigger LED flickering light system to enhance the underground safety precautions. This system visually draws miners' attention when there is movement in the roof. Other investments are in a variety of noise reduction technologies.
Sasol's mining business, which falls under its upstream portfolio, is the third largest producer of coal in South Africa with an output of some 40 million tons per annum. The business contributes 13% to Sasol's earnings and is integral to the global integrated chemicals and Energy Company's long-term sustainability.
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrated sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.
Alex Anderson, Head of Group Media Relations
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600 9605;
alex.anderson@sasol.com
Matebello Motloung, Senior Specialist: Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 83 773 9457
matebello.motloung@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-officially-opens-another-coal-mine-sustaining-jobs-300831409.html
SOURCE Sasol Limited
Article Date
4/12/2019Sasol Limited: Retirement of Chairman and Lead Independent Director and Appointment of Director and Chairman Designate
Source: PR Newswire
JOHANNESBURG, April 11, 2019 /PRNewswire/ -- After serving as a member of the board of directors of Sasol (the Board) for 16 years, more than 5 of which as the Chairman of the Board, Dr. Mandla Gantsho informed the Board that he will retire from the Board with effect from the conclusion of Sasol's annual general meeting (AGM) on 22 November 2019.
Mr. Njeke said: "On behalf of the Board, I express our sincere appreciation to Mandla for his valued leadership of the Board for more than five years and his contribution to Sasol for 16 years. Mandla has led Sasol through up and down global and local economic cycles as well as the execution of large capital projects that have faced challenges while clearly presenting strategic opportunities for the Company's growth. He enabled the Board to adopt decisive positions in the identification of strategic options to ensure the Company remains resilient and well positioned for growth in the near- to long-term future. Mandla will leave behind a company that is well-positioned to deliver shareholder value against its targets after the commissioning of the last of the downstream chemical units of the Lake Charles Chemicals Project in January 2020."
Mr. Sipho Nkosi will join the Board on 1 May 2019 as independent non-executive director and chairman designate to succeed Dr. Gantsho at the conclusion of the AGM on 22 November 2019. He will also serve on the Nomination and Governance Committee (the NGC) and will succeed Dr. Gantsho as chairman of the NGC on 22 November 2019.
Mr. Nkosi holds a BCom degree from the University of Zululand, a BCom (Econ) (Hons) degree from Unisa and an MBA from the University of Massachusetts. He brings over 36 years' experience in the South African resources industry, with his last role prior to retirement being the Chief Executive Officer of Exxaro Resources from 2006 to 2016. He has extensive experience in the operational, financial, logistics and marketing areas of the resources sector, and more specifically in the energy and coal sectors, both locally and internationally.
Dr. Gantsho said: "I am pleased to hand over the reins to a person of Sipho's calibre and I am confident that he will provide the necessary direction and leadership in an exciting chapter of Sasol's history. He will continue to be supported by a strong Board comprised of a diversity of skills and experience."
In addition, Mr. JJ Njeke has indicated that he will retire as a director of Sasol with effect from the conclusion of the AGM on 22 November 2019. Mr. Njeke was appointed as a director and member of the Audit Committee in February 2009 and became the Board's Lead Independent Director on 1 May 2018. In this latter capacity, he has overseen the succession process for the Chairman of Sasol.
Dr. Gantsho said: "I would like to thank JJ for his contribution to Sasol over more than a decade, in particular as a member of the Audit Committee and lately as the Lead Independent Director. We are most grateful for the leadership he provided to the execution of the Chairman's succession plan."
An announcement regarding the appointment of a new lead independent director, as well as other appointments to Board committees, will be made at the appropriate time.
For further information, please contact:
Feroza Syed,
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-7778
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-retirement-of-chairman-and-lead-independent-director-and-appointment-of-director-and-chairman-designate-300830579.html
SOURCE Sasol Limited
Article Date
4/11/20193/4/2019 - Sasol BEE Ordinary (SOLBE1) Shares - Implementation of the BEE Verification Agent Process
Sasol BEE Ordinary (SOLBE1) Shares - Implementation of the BEE Verification Agent Process
Source: PR Newswire
JOHANNESBURG, March 4, 2019 /PRNewswire/ -- Shareholders are referred to the separate class meeting of SOLBE1 shareholders and to the annual general meeting of holders of Sasol ordinary shares held on 16 November 2018, during which meetings various approvals were obtained to allow Sasol to adopt the BEE Verification Agent Process instead of the BEE Contract Verification Process to determine whether prospective purchasers of SOLBE1 shares are BEE Compliant Persons for purposes of trading in and owning SOLBE1 shares.
Pursuant to the above approvals, Sasol will be implementing the BEE Verification Agent Process with effect from Monday, 11 March 2019 (Implementation Date).
The implementation of the BEE Verification Agent Process means that, with effect from the Implementation Date:
Sasol has appointed Computershare Investor Services (Pty) Limited as the BEE Verification Agent in compliance with paragraph 4.32 of the JSE Listings Requirements. The BEE Verification Agent's contact details are:
Call centre number: 0800 000 222
e-mail: sasol@computershare.co.za
The guidelines for the BEE Verification Agent process are available on Sasol's website at: https://www.sasol.com/sites/default/files/content/files/SOLBE1%20verification%20guidelines%20cm%20comments%20010032019%20FINAL.PDF
Investor Relations:
Moveshen Moodley, Chief Investor Relations Officer
Direct telephone: +27(0) 10 344 8052
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-bee-ordinary-solbe1-shares--implementation-of-the-bee-verification-agent-process-300805729.html
SOURCE Sasol Limited
Article Date
3/4/2019Sasol Appoints New Country Director for Mozambique
Source: PR Newswire
JOHANNESBURG and MAPUTO, Mozambique, Feb. 28, 2019 /PRNewswire/ -- Sasol is pleased to announce the appointment of Ovidio José Sarmento Rodolfo as Country Director for Mozambique.
Ovidio comes to Sasol with solid experience in the oil and gas industry in various engineering, managerial, commercial and leadership roles. Ovidio holds a degree in Mechanical Engineering and a Master's degree in Business Administration. He has occupied various senior management roles in both international and state owned companies.
He started his career with BP in Mozambique where he proposed a strategy that initiated the turnaround of the lubricants business in terms of profitability, while at IPG he led and coordinated the design phase of three oil terminal projects in Maputo, Beira and Moatize. At Inpetro Energy, he managed all operations covering the reception, storage and dispatch of fuels.
Gilbert Y Yevi, Senior Vice President for Sasol Exploration and Production International commented, "We are delighted to welcome Ovidio on board and confident that his appointment will benefit not only Sasol, but all our stakeholders in Mozambique, given his extensive knowledge of the industry and the operating landscape."
"Over the past decade, the availability of gas from the Pande and Temane gas fields has helped to grow the domestic gas market in Mozambique, enabling the wholesale and retail supply of gas. In addition, the development of gas infrastructure stimulated by Sasol and its partners has helped to drive socio-economic development and economic diversification. Today, about a third of Mozambique's electricity is generated from Pande and Temane gas. We believe that Ovidio will be a great asset to our company in bringing new thinking and perspectives in continuing our strong partnership with Mozambique and its people."
He concluded by saying that Ovidio's appointment is yet another testament of our commitment to the development of Mozambique in partnership with and through Mozambicans by building on our foundation of win-win in-country partnerships.
About Sasol:
Sasol is a global integrated chemicals and energy company. Through our talented people, we safely and sustainably create superior value for our customers, shareholders and other stakeholders. We integrated sophisticated technologies in world-scale operating facilities to produce and commercialise commodity and specialised chemicals, gaseous and liquid fuels, and lower-carbon electricity.
Issued by:
Alex Anderson, Head of Group Media Relations
Direct telephone: +27 (0) 10 344 6509; Mobile +27 (0) 71 600 9605;
alex.anderson@sasol.com
Matebello Motloung, Senior Specialist: Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 83 773 9457;
matebello.motloung@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-appoints-new-country-director-for-mozambique-300804003.html
SOURCE Sasol Limited
Article Date
2/28/2019Sasol Limited: Changes to Group Executive Committee
Source: PR Newswire
JOHANNESBURG, Feb. 25, 2019 /PRNewswire/ -- Sasol announced today that Mr Stephan Schoeman, the Group Executive Committee (GEC) member responsible for, among others, Sasol's Lake Charles Chemicals Project in Louisiana in the United States (LCCP), will be retiring from the Company after 30 years of service.
Stephan joined Sasol in 1989 and has held various management positions in Sasol. He played a key role in our international expansion strategy when he was placed in Hong Kong and Germany. Stephan served as Managing Director of Sasol Infrachem from 2009 and was appointed Managing Director of Sasol Synfuels in 2011.
In 2014, he was appointed to the GEC as Executive Vice President (EVP): Technology. In 2016, Stephan took on responsibility for the LCCP and has since been instrumental in overseeing the engineering and construction works of the new plant.
With effect from 1 April 2019, project accountabilities for the LCCP will report to Mr Fleetwood Grobler in his capacity as EVP: Chemicals Business. The commissioning and operations of the LCCP already report to Mr Bernard Klingenberg, who is the EVP responsible for Sasol operations globally.
As announced on 8 February 2019, engineering and procurement activities were substantially complete at the end of December 2018, and construction progress was at 84%.
Investor Relations:
Moveshen Moodley
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-8052
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-changes-to-group-executive-committee-300801007.html
SOURCE Sasol Limited
Article Date
2/25/2019Sasol Limited: Sasol Records a Satisfactory Operational and Financial Performance
Source: PR Newswire
JOHANNESBURG, Feb. 25, 2019 /PRNewswire/ --
Sasol today released our interim financial results for the six months ended 31 December 2018. Sasol recorded a satisfactory operational and financial performance against the backdrop of a volatile macroeconomic environment and an uncertain geo-political climate, which impacted global demand growth.
"Our production and sales performance was mixed with largely lower than expected production in the first half of the financial year, mainly as a result of the longer than planned total shutdown at our Secunda Synfuels Operations (SSO). However, our operational performance was enhanced by management interventions in previous periods resulting in improved performances at Natref and Sasol Mining. Post the shutdowns, we are pleased to see steady progress across our value chains," said Joint President and Chief Executive Officer, Bongani Nqwababa.
"As always, we remain focused on our key controllable factors, with safety, reliability of operations and cost control being paramount. Our Continuous Improvement (CI) programme will be a key feature to deliver future value to shareholders and improve our cost competitive advantage. This initiative is driven with the same discipline and rigour that allowed us to deliver, and exceed expectations, on our Business Performance Enhancement Programme and Response Plan target."
Our underlying cash generation remains sound, with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by 10% to R27 billion when compared to the prior period and normalised cash fixed cost contained to below our inflation target. Our earnings growth was, however, slower than expected due to volatility in the oil price and lower than expected production and sales volumes. As we are in the commissioning phase of the LCCP production units, the delay in income from these units will result in lower earnings due to costs being recognised without corresponding revenues.
"While the LCCP fundamentals remain firmly intact, we acknowledge the disappointing cost and schedule overrun. The project was impacted by several challenges, within and beyond our control, in the fourth quarter of the previous calendar year. Despite incremental cash flows from the project being deferred due to a schedule delay, we remain confident that the project will deliver the steady EBITDA run-rate of US$1,3 billion in financial year 2022," said Joint President and Chief Executive Officer, Stephen Cornell.
He added that while this update will have an impact on our cash flow inflection point and gearing, Sasol continues to proactively protect its balance sheet, while managing the capital structure and gearing during these turbulent times.
"Our short-term focus remains on productivity in the field, process safety and progressing units to mechanical completion followed by beneficial operation. The linear low-density polyethylene (LLDPE) unit achieved beneficial operations on 13 February 2019, and is the first of seven LCCP production units to come online.
"Our commitment to sustainable value creation for all our stakeholders, is underpinned by driving our roadmap to deliver on our financial and sustainability goals, as well as contributing meaningfully to inclusive growth and development of our fenceline communities. We are mindful of the challenges we face, however, our management team is fully committed to ensuring Sasol is a credible stakeholder partner with a compelling investment proposition that will deliver value to all stakeholders."
Earnings attributable to shareholders for the period ended 31 December 2018 increased by 114% to R14,7 billion from R6,9 billion in the prior period, largely due to the significant re-measurement items recorded in the prior period. Headline earnings per share (HEPS) increased by 32% to R23,25 per share and earnings per share (EPS) increased by 112% to R23,92 per share compared to the prior period.
Core headline earnings per share (CHEPS) increased by 18% to R21,45 per share compared to the prior period, mainly as a result of higher average crude and product prices, the effect of the weaker rand/US dollar exchange rate and higher margins in specialty chemicals measured in rand terms. This was partially offset by lower than expected production and sales volumes due to the extended shutdown at SSO and external ethylene supply constraints which impacted our European operations. Post the shutdowns, we are seeing much improved production in all of our units with SSO performing at run-rates indicative of 7,8 million tons (mt)/per annum.
We expect steady progress in the second half and production to be in line with previous market guidance.
Sasol's core headline earnings were impacted by the following notable once-off and period close items:
Operational performance
Sasol experienced some challenges with regards to our operational performance in the first quarter of the year, largely due to the extended planned shutdown at SSO which impacted production and sales volumes across the value chain. We did, however, deliver a stronger operational performance in the second quarter of the year and are maintaining stable operations.
Our current production run-rates at SSO support an annualised run-rate of 7,8 million tons. In Europe, our operations maintained their good performance, but were affected by external ethylene supply constraints which impacted sales volumes.
Operational highlights
The highlights of our operational performance are summarised as follows:
Cost, cash and capital performance
Cash fixed costs, excluding capital-growth and once-off business establishment costs, increased by 4,3% which is 1,7% below our inflation target. Our cost management processes remain a key focus to protect and improve our competitive position, while ensuring that we maintain safe and sustainable operations. As indicated previously, Sasol is targeting a longer term sustainable inflation rate of 6%.
Our net cash position decreased by 7%, from R17 billion in June 2018 to R16 billion as at 31 December 2018 mainly due to the funding requirements of the LCCP. Loans raised during the period amounted to R28 billion, mainly for funding of our growth projects. During the period, we utilised an additional US$1,7 billion of the US$3,9 billion Revolving Credit Facility (RCF), in order to meet the group's funding requirements. In addition, in September 2018 Sasol raised bonds in the US capital markets to the value of US$1,5 billion (maturity in 2024) and US$0,75 billion (maturity in 2028), respectively. The proceeds of the bonds were used to repay a portion of the outstanding LCCP project asset finance facility.
Working capital increased R2,1 billion from June 2018, mostly as a result of higher feedstock prices. Inventory holding in days reduced by 11% compared to June 2018.
Cash generated by operating activities increased by 79% to R25 billion compared with R14 billion in the prior period. This is largely attributable to favourable Brent crude oil and product prices and a weaker rand/US dollar exchange rate.
Actual capital expenditure amounted to R30 billion. This includes R16 billion (US$1,1 billion) relating to the LCCP. Our capital expenditure estimate for the full year has been revised to R52 billion largely due to optimisation of the capital portfolio.
Due to funding of the LCCP, more than 85% of our debt is now US dollar denominated. Given the significantly weaker closing exchange rate of R14,36, gearing increased to 48,9%, which is above our target and previous market guidance. The exchange rate increased gearing by approximately 2% compared to our internal forecast. The higher capital cash flows on the LCCP during November to December 2018 further impacted gearing increasing it to 48,9%.
Net debt to EBITDA increased to 2,17 times for the same reasons. While this is above our target of 2,0 times and previous market guidance, our investment grade credit ratings remain intact. Notwithstanding the current oil price and exchange rate volatility, as well as the increased expenditure on the LCCP, we still plan to manage the balance sheet debt metrics to within investment grade credit ratings.
Our dividend policy is to pay dividends with a dividend cover range based on CHEPS. Taking into account the impact of the current volatile macroeconomic environment, capital investment plans, the current strength of our balance sheet, and the dividend cover range, the Board has declared a gross interim dividend of R5,90 per share (18% higher compared to the prior period). The dividend cover is 3,6 times at 31 December 2018 (31 December 2017: 3,6 times).
Update on hedging activities
Sasol continues to monitor opportunities to optimally protect its trading portfolio and balance sheet. The group entered into a number of hedging transactions relating to the crude oil price, rand/US dollar exchange rate, ethane price and the coal price.
Our hedging programme for financial year 2019 has been completed, with ~70% of our exposure to the rand/US dollar exchange rate and ~80% of our oil exposure hedged. We are currently executing on our hedging programme for financial year 2020 with US$613 million of our exposure to the rand/US dollar exchange rate already hedged as at 31 December 2018. In January 2019, we hedged an additional US$87 million, thereby increasing our total cover to US$700 million.
The current ethane hedging programme is being executed to cover the existing ethane cracker in the US. Hedging for the LCCP cracker is planned to match the start-up schedule.
Should attractive hedges become available in the market at an acceptable cost, we will enter into additional hedges in mitigation against these financial risks. The volumes hedged, exposure and floor prices for financial years 2019 and 2020 are detailed in the Analyst Book available on our website, www.sasol.com
Continuous improvement (CI) and digitalisation
Our group wide CI programme, aimed at improving the robustness and competitiveness of our business, has a medium-term target to increase our Return on Invested Capital (ROIC) for our foundation businesses by at least two percentage points by financial year 2022. The targeted ROIC increase is off a 30 June 2017 base, normalised for remeasurement and once-off items, and excluding assets under construction.
To date, we have completed industry benchmarks against our global peers for the majority of our functions and major value chains. Based on the outcome of these, a number of value enhancing opportunities with a high probability to meet our financial year 2022 ROIC target have been identified.
Approximately R2 billion of value has been unlocked with specific gross margin, cash fixed costs and balance sheet initiatives in the first half of financial year 2019. This benefit was offset by the impact of production interruptions during the period.
Digitalisation is a significant lever for our CI programme, with specific focus on improving the quality and availability of data across all areas of the business to enable automation, advanced analytics and improved decision making and operations.
We have made good progress with our focused asset review process. The majority of our reviewed assets will be retained, with some earmarked for growth while others will be enhanced through detailed improvement plans. Although the initial asset reviews are nearing completion, the asset portfolio will be continuously reviewed to achieve a high grade portfolio and ensure optimal performance against our targets.
Effective tax rate
The decrease in our effective corporate tax rate from 31,6% to 24,1% was mainly as a result of the successful outcome of the Sasol Oil tax litigation matter resulting in the reversal of the provision of R1,3 billion. The adjusted effective tax rate, excluding equity accounted investments, remeasurements and once-off items, is 29,0% compared to 26,4% in the prior period due to lower energy efficiency allowances.
Advancing projects to enable future growth
We are encouraged by the headway we are making in delivering on our project pipeline:
Update on the Lake Charles Chemicals Project (LCCP)
The first derivative unit, linear low-density polyethylene (LLDPE) reached beneficial operation on 13 February 2019, approximately two months late. Utilities to support the early process units were fully operational by end November 2018. These utilities together with LLDPE comprised ~40% of the LCCP total cost, prior to the revised estimate.
Unfortunately, during the last quarter of calendar 2018, several factors within and beyond our control impacted the completion schedule and associated cost for the remaining units resulting in the overall project capital cost estimate being revised from US$11,13 billion to a range of US$11,6 – 11,8 billion. The difference between the upper and lower end of the range is a contingency and weather provision of US$200 million.
Management maintains our unrelenting focus on delivering the remaining units per the revised schedule and we are confident that the fundamentals for the LCCP – being, among others, a feedstock advantaged plant, a world scale highly integrated facility, diverse product slate with high margin products and world class logistics and infrastructure – remain intact. We maintain our guidance that the project will deliver a steady state EBITDA of US$1,3 billion in financial year 2022.
Focusing on our asset base in Africa
The initial appraisal of the Phase 2 Pande gas reservoirs has been completed. The drilling results indicate gas volumes to be at the lower end of expectations. An extension of the commercial assessment period has been granted to enable further appraisal and development of the gas markets. Focused efforts are underway to
assess the range of options and possibilities to sustainably secure and source gas feedstock.
In September 2018, VAALCO through its wholly owned subsidiary and other Etame participating interest owners, announced the receipt of the Presidential Decree approving the successful execution of an amendment to the Etame Marin Production Sharing Contract (PSC) in Gabon between the government of Gabon and the Etame participating interest owners. The amendment provides for a 10 year extension of the three exclusive exploitation areas under the PSC until September 2028.continuing to execute our strategy, we have concluded a farm-in into the DE8 block in Gabon where we now hold 40% working interest of that block. An exploration well drilled during the year was unsuccessful and written off.
Profit outlook* – improved production performance and continuation of cost focus
The current economic climate continues to remain highly volatile and uncertain. While oil price and foreign exchange movements are outside our control and may impact our results, our focus remains firmly on managing factors within our control, including volume growth, cost optimisation, effective capital allocation, focused financial risk management and maintaining an investment grade credit rating.
We expect an overall improved operational performance for the year ending 30 June 2019, with:
* The financial information contained in this business performance outlook is the responsibility of the directors and in accordance with standard practice, it is noted that this information has not been audited and reported on by the company's auditors..
Declaration of cash dividend number 79
An interim gross cash dividend of South African 590 cents per ordinary share (31 December 2017 – 500 cents per ordinary share) has been declared for the six months ended 31 December 2018. The cash dividend is payable on the ordinary shares and the Sasol BEE ordinary shares. The Board is satisfied that the liquidity and solvency of the company, as well as capital remaining after payment of the dividend is sufficient to support the current operations for the ensuing year. The dividend has been declared out of retained earnings (income reserves). The South African dividend withholding tax rate is 20%. At the declaration date, there are 624 606 120 ordinary and 6 331 347 Sasol BEE ordinary shares in issue. The net dividend amount payable to shareholders who are not exempt from the dividend withholding tax, is 472 cents per share, while the dividend amount payable to shareholders who are exempt from dividend withholding tax is 590 cents per share.
The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:
Declaration date Monday, 25 February 2019
Last day for trading to qualify for and participate in the final dividend
(cum dividend) Tuesday, 12 March 2019
Trading ex dividend commences Wednesday, 13 March 2019
Record date Friday, 15 March 2019
Dividend payment date
(electronic and certificated register) Monday, 18 March 2019
The salient dates for holders of our American Depository Receipts are1:
Ex dividend on New York Stock Exchange (NYSE) Thursday, 14 March 2019
Record date Friday, 15 March 2019
Approximate date for currency conversion Tuesday, 19 March 2019
Approximate dividend payment date Friday, 29 March 2019
1 All dates approximate as the NYSE sets the record date after receipt of the dividend declaration.
On Monday, 18 March 2019, 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 hold dematerialised shares will have their accounts held by their CSDP or broker credited on Monday, 18 March 2019. Share certificates may not be dematerialised or rematerialised between 13 March 2019 and 15 March 2019, both days inclusive.
Comprehensive additional information is available on our website:
https://www.sasol.com/investor-centre/financial-reporting/annual-integrated-reporting-set
A supporting presentation and webcast will be available on the Company's website at https://www.sasol.com/investor-centre/financial-reporting/annual-integrated-report/interim-results and will begin at 15:00 (SA), 13:00 (GMT) and 8:00 (CST) on 25 February 2019.
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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) programme and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
Media Contact:
Investor Relations:
Moveshen Moodley
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-8052
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/sasol-limited-sasol-records-a-satisfactory-operational-and-financial-performance-300800998.html
SOURCE Sasol Limited
Article Date
2/25/2019Market Making Services Agreement for Sasol BEE Ordinary ('SOLBE1') Shares Entered Into With Ngonyama Capital Proprietary Limited ('Ngonyama Capital')
Source: PR Newswire
JOHANNESBURG, Feb. 21, 2019 /PRNewswire/ -- Sasol has entered into a Market Making Services Agreement (the "Agreement") with Ngonyama Capital, in terms of which Ngonyama Capital will purchase and sell SOLBE1 Shares in the open market with the objective of enhancing the value proposition of SOLBE1 Shares and increasing the liquidity of SOLBE1 Shares in the open market.
Under the Agreement, which has been entered into for a period of three (3) years and which may be terminated on notice by either party, Ngonyama Capital will be the beneficial owner of SOLBE1 Shares and will buy and sell SOLBE1 Shares in the open market as a principal, for its own account and sole risk and independent of and without influence by Sasol. Ngonyama Capital will endeavour to purchase 100 000 SOLBE1 Shares in the open market within a period of six months from the date of this announcement. In consideration for rendering the market making services under the Agreement, Ngonyama Capital will be paid a fee calculated at a total of 15%, spread over the three year period of the Agreement, of the average daily net value of SOLBE1 Shares held by Ngonyama Capital. A break fee will be payable to Ngonyama if Sasol terminates the Agreement without reason before the expiry of three years. The Agreement will be available for inspection during normal working hours at the Company's company secretarial services office at Sasol Place, 50 Katherine Street, Sandton.
Ngonyama Capital will commence the market making services in terms of the Agreement on Thursday, February 21, 2019
For further information, please contact:
Moveshen Moodley
Chief Investor Relations Officer
Direct telephone: +27(0)10-344-8052
investor.relations@sasol.com
View original content:http://www.prnewswire.com/news-releases/market-making-services-agreement-for-sasol-bee-ordinary-solbe1-shares-entered-into-with-ngonyama-capital-proprietary-limited-ngonyama-capital-300799494.html
SOURCE Sasol Limited
Article Date
2/21/20192/13/2019 - Sasol achieves beneficial operation of first Lake Charles Chemicals Project production facility
Sasol achieves beneficial operation of first Lake Charles Chemicals Project production facility
Source: PR Newswire
LAKE CHARLES, La., Feb. 13, 2019 /PRNewswire/ -- Sasol today announced its new U.S. linear low-density polyethylene unit has achieved beneficial operations — the first of the seven LCCP production facilities to come online.
"Reaching beneficial operations of our first LCCP unit is a defining moment in Sasol's history and a significant milestone in delivering on the promise of LCCP," said Mike Thomas, senior vice president of Sasol's North American Operations. "This success is attributable to our team of Sasol employees, contractors and industry partners, who worked for several years to safely enable this milestone."
"We have been in the global polymers industry for more than 50 years with local presence established in all regions with employees and distribution partners," said Adriaan Janse van Rensburg, vice president of Polymers for Sasol's Base Chemicals strategic business unit. "Our competitive cost position, world-scale, state-of-the-art assets and good logistics location will provide for robust economics over the long term as we supply polymers to new and existing customers in fast-growing global markets."
The 470ktpa LLDPE unit, which uses Univation Technologies' UNIPOL™ PE process, is one of two polyethylene plants at the LCCP site. The second, a 420ktpa low-density polyethylene plant using ExxonMobil technology, is scheduled to come online later this year. Additionally, Sasol has a third polyethylene facility in the United States, a high-density polyethylene plant, through Gemini, its 50/50 joint venture with INEOS, in LaPorte, Texas. The new U.S. polymers facilities will effectively double Sasol's global polymer production capabilities, benefiting customers in all regions.
The remaining six Lake Charles Chemicals Project manufacturing units are expected to reach beneficial operations throughout 2019 and early 2020.
About Sasol
Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of more than 30,000 people working in more than 30 countries. We develop and commercialize technologies, and build and operate world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and low-carbon electricity. Based in Johannesburg, South Africa, Sasol is listed on the Johannesburg (SOL) and New York (SSL) stock exchanges.
In North America, Sasol has operations in Arizona, Louisiana, Pennsylvania and Texas. Collectively, these sites employ a workforce of approximately 1,500 and manufacture the primary ingredients in detergents, personal care products, waxes and specialty products used as abrasives, catalysts, thickeners, ceramics and more.
Sasol is building a world-scale petrochemical complex near its existing site in Southwest Louisiana. The project will roughly triple the company's chemical production capacity in the U.S. and enable it to build on its strong positions in robust and growing global chemical markets.
Learn more about Sasol's Lake Charles Chemicals Project and North American Operations at www.SasolNorthAmerica.com.
View original content:http://www.prnewswire.com/news-releases/sasol-achieves-beneficial-operation-of-first-lake-charles-chemicals-project-production-facility-300795048.html
SOURCE Sasol
Article Date
2/13/20192/8/2019 - Sasol Limited: Updated Trading Statement for the Six Months Ended 31 December 2018 and LCCP Update
Sasol Limited: Updated Trading Statement for the Six Months Ended 31 December 2018 and LCCP Update
Source: PR Newswire
JOHANNESBURG, Feb. 8, 2019 /PRNewswire/ --
Shareholders of Sasol are referred to the Company's trading statement released on the Stock Exchange News Service (SENS) on 21 November 2018 (Announcement), wherein the Company indicated that an updated trading statement will be released on SENS in January 2019, once reasonable certainty is attained with regards to the 31 December 2018 half-year financial results.
We have now reached a reasonable degree of certainty that the financial performance for the six months ended 31 December 2018 (half year 2019) is expected to be within the updated earnings ranges contained in the table below. Core headline earnings per share (Core HEPS) and earnings before interest, tax, depreciation and amortisation (EBITDA) are within the previously provided range as outlined in the Announcement. However, we are revising the range slightly upwards with regards to earnings per share (EPS) and headline earnings per share (HEPS). The main reason for the increase is the impact of half year-end valuation adjustments associated with crude oil hedges and closing exchange rates. The updated ranges can be summarised as follows:
Estimated Half year 2019 | Actual Half year 2018 | Expected % change | |
EPS | R23,71 – R24,16 | R11,29 | 110% – 114% |
HEPS | R22,97 – R23,68 | R17,67 | 30% – 34% |
Core HEPS | R21,14 – R21,86 | R18,22 | 16% – 20% |
EBITDA | R26 billion – R28 billion | R24,2 billion | 8% – 16% |
Key macro-economic summary
| Half year 2019 | Half year 2018 | % change |
Rand/US dollar average exchange rate | 14,20 | 13,40 | 6 |
Rand/US dollar closing exchange rate | 14,36 | 12,37 | 16 |
Average dated Brent crude oil price (US dollar / barrel) | 71,33 | 56,74 | 26 |
Refining margins (US dollar / barrel) | 9,49 | 9,73 | (2) |
Average Henry Hub gas price (US dollar / million British thermal unit) | 3,36 | 2,93 | 15 |
The increase/(decrease) from HEPS to Core HEPS is as follows:
Half year 2019 Rand per share | Half year 2018 Rand per share | |
Translation impact of closing exchange rate | (0,51) | 1,33 |
Mark-to-market valuation of oil and foreign exchange hedges | (0,48) | (0,78) |
Implementation of Khanyisa B-BBEE transaction | 0,63 | - |
Reversal of provision for tax litigation matters | (1,60) | - |
Lake Charles Chemicals Project (LCCP) depreciation (post Beneficial Operation ramp-up) | 0,17 | - |
Cost
The normalised cash fixed cost for the period under review has been contained to below our 6% inflation target despite operational challenges experienced during the period.
LCCP update
As at the end of December 2018, engineering and procurement activities were substantially complete and construction progress was at 84%. Our overall project completion was 94% and capital expenditure amounted to US$10,9 billion.
The first derivative unit, linear low-density polyethylene (LLDPE), produced first product in January 2019 and beneficial operation is expected in February, approximately two months behind schedule. Utilities to support the early process units were fully operational by end November 2018. These utilities together with LLDPE will comprise ~40% of the LCCP existing total cost.
Unfortunately, during the last quarter of CY2018, several factors within and beyond our control impacted the completion schedule and associated cost for the remaining units resulting in the overall project capital cost estimate being revised from US$11,13 billion to a range of US$11,6 – 11,8 billion. The difference between the upper end and lower end of the range represents a contingency and weather provision of US$200 million.
These factors which impacted the revised cost estimate include:
While our underlying productivity factor remained on track, the inclement weather, scope additions and absenteeism had a significant impact on actual productivity. These factors were assessed and quantified late in Q4 CY2018 and where feasible, management interventions were put in place to arrest the controllable trends. Unfortunately, the mitigating actions were not successful in reversing the full impact on schedule and cost.
The beneficial operation dates for the individual units have been revised as follows:
Previous Guidance | Updated Guidance | Approximate delay | |
Linear low-density polyethylene (LLDPE) | December 2018 | February 2019 | 2 months |
Ethylene Oxide / Ethylene Glycol (EO/EG) | February 2019 | June 2019 | 4 months |
Cracker | February 2019 | July 2019 | 5 months |
Low density polyethylene (LDPE) | March 2019 | August 2019 | 5 months |
Ziegler | H2CY19 | November 2019 | - |
Ethoxylate (ETO) | H2CY19 | December 2019 | - |
Guerbet | H2CY19 | January 2020 | 1 month |
Management maintains our unrelenting focus on delivering the remaining units per this updated plan and we remain confident that the fundamentals for the LCCP - being, among others, a feedstock advantaged plant, a world scale highly integrated facility, diverse product slate with high margin products and world class logistics and infrastructure - remain intact.
As a result of the delays highlighted above, we are revising our LCCP EBITDA estimate down from US$110 – US$160 million to an EBITDA loss of US$165 – US$195 million for FY19. However, we maintain our guidance that LCCP will deliver a steady state EBITDA of US$1,3 billion in FY2022.
More details on the project can be found in our updated project factsheet at https://www.sasol.com/investor-centre/lake-charles-chemicals-project/lake-charles-chemicals-project-fact-sheet.
The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sasol will release its reviewed results for the six months ended 31 December 2018 on Monday, 25 February 2019.
A detailed summary of the production and sales metrics for the financial half year for all our businesses is available on our website, www.sasol.com
* EBITDA is calculated by adjusting operating profit for depreciation, amortisation, remeasurement items, share-based payments and unrealised gains and losses on our hedging activities.
** Core HEPS are calculated by adjusting headline earnings with once-off items, period close adjustments and depreciation and amortisation of capital projects, exceeding R4 billion which have reached beneficial operation and are still ramping up and share-based payments on implementation of B-BBEE transactions. Period close adjustments in relation to the valuation of our derivatives at period end are to remove volatility from earnings as these instruments are valued using forward curves and other market factors at the reporting date and could vary from period to period. We believe core headline earnings are a useful measure of the group´s sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. The aforementioned adjustments are the responsibility of the directors of Sasol. The adjustments have been prepared for illustrative purposes only and due to their nature, may not fairly present Sasol´s financial position, changes in equity, results of operations or cash flows.
For further information, please contact:
Moveshen Moodley, Chief Investor Relations Officer
Direct telephone: +27(0)10-344-8052
investor.relations@sasol.com
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, executing our growth projects (including LCCP), oil and gas reserves, cost reductions, our Continuous Improvement (CI) initiative and business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2018 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.
View original content:http://www.prnewswire.com/news-releases/sasol-limited-updated-trading-statement-for-the-six-months-ended-31-december-2018-and-lccp-update-300792238.html
SOURCE Sasol Limited
Article Date
2/8/2019Joint Announcement Regarding Effective Date of Sasol Khanyisa Transaction and Issue of Shares Pursuant Thereto
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
JOHANNESBURG, June 1, 2018 /PRNewswire/ --
Disclaimer – 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, executing our growth projects, (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 on Form 20-F filed on 28 August 2017 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. Please note: A billion is defined as one thousand million. All references to years refer to the financial year ended
30 June. Any reference to a calendar year is prefaced by the word "calendar".
Additional information on our business performance is included in the analyst book available on our website: www.sasol.com
Investor Relations:
Moveshen Moodley, Chief Investor Relations Officer
Telephone: +27(0)10-344-8052
View original content:http://www.prnewswire.com/news-releases/joint-announcement-regarding-effective-date-of-sasol-khanyisa-transaction-and-issue-of-shares-pursuant-thereto-300658020.html
SOURCE Sasol Limited
Article Date
6/1/2018Projects & Assets
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