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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K for February 27, 2017
Commission File Number 1-31615
Sasol Limited
50 Katherine Street
Sandton 2196
South Africa
(Name and address of registrant’s principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.
Form 20-F __X__ Form 40-F _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-
T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted
solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-
T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized
(the registrant’s “home country”), or under the rules of the home country exchange on which the
registrant’s securities are traded, as long as the report or other document is not a press release, is not
required to be and has not been distributed to the registrant’s security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes _____ No __X__
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):
82-_______________.
Enclosures:
Reviewed interim financial results for the six months ended 31 December 2016
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Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
("Sasol" or "the company")
Reviewed interim financial results for the six months ended 31 December 2016
Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise
of our 30 300 people working in 33 countries. We develop and commercialise 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.
SALIENT FEATURES
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Strong business performance across most of the value chain
-
Production volumes
-
Up 1% for Secunda Synfuels Operations
-
Up 5% for Eurasian Operations
-
Normalised sales volumes
-
Base Chemicals up 11% and Performance Chemicals up 2%
-
Energy liquid fuels down 2%
-
Business Performance Enhancement Programme delivered
-
Sustainable actual cost savings of R4,9bn
-
Target exit run rate of R5,4bn by 2018
-
Response Plan cash savings exceeding expectations
-
R17,8bn cash savings delivered for the period
-
Target increased to deliver full year cash savings of R26bn
-
Lake Charles Chemicals Project is on track and 64% complete
-
Headline earnings per share down 38% to R15,12, earnings per share up 19% to R14,21
-
Safety Recordable Case Rate (RCR), excluding illnesses, improved to 0,27. We regret that three fatalities
occurred.
-
Cash fixed costs, including the mining strike cost, 1% down in real terms
-
Invested R471 million in skills development and socioeconomic development
-
Direct and indirect taxes paid to South African Government R15,4 billion
Segment report
for the period ended
Turnover
Operating profit/(loss)
R million
R million
Full year
Half year
Half year
Half year
Half year
Full year
30 Jun 16
31 Dec 15
31 Dec 16
31 Dec 16
31 Dec 15
30 Jun 16
Audited
Reviewed
Reviewed
Segment analysis
Reviewed
Reviewed
Audited
21 186
10 625
11 543
Operating Business Units
1 738
(5 930)
(6 975)
16 975
8 351
9 524
-
Mining
2 359
1 534
4 739
-
Exploration and Production
4 211
2 274
2 019
International
(8 289)
204
(11 714)
173 042
84 507
83 452
Strategic Business Units
11 909
18 600
29 831
64 341
32 991
31 225
-
Energy
5 529
10 261
14 069
35 067
16 938
18 215
-
Base Chemicals
1 733
3 178
4 486
73 634
34 578
34 012
-
Performance Chemicals
4 647
5 161
11 276
108
49
526
Group Functions
25
2 246
1 383
194 336
95 181
95 521
Group performance
13 672
14 916
24 239
(21 394)
(10 706)
(10 626)
Intersegmental turnover
172 942
84 475
84 895
External turnover
Transitioning to the future
Joint President and Chief Executive Officer, Bongani Nqwababa said:
"Notwithstanding the volatile macro-economic environment in which we operate, Sasol delivered a resilient
performance. This is attributable to our continued sharpened focus on business and capital excellence,
advancement of our value-based capital projects, consistent delivery against our cost reduction and
cash savings targets and a heightened focus on macro-economic risk mitigations to protect our balance
sheet. These decisive actions were underpinned by a robust business performance from our global assets.
Furthermore, we continue pursuing our zero harm focus, building a resilient organisation for the future
and nurturing our foundation business, while driving value based growth as we consider our future
investment opportunities."
Joint President and Chief Executive Officer, Stephen Cornell said:
"Advancing our value based growth strategy continues through our near-term focus on Southern Africa and
North America. Our Lake Charles Chemicals Project in the United States is now 64% complete, and remains
on track for start-up of the first units in the second half of 2018. The fundamental drivers for this investment
remain sound, and will enable Sasol's continued growth in a low feedstock cost region. In Mozambique,
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we remain committed to our growth plans and will continue to partner with the country's government
and other stakeholders on projects that will help stimulate socio-economic growth. We are confident that
the economics to develop the Production Sharing Agreement license area remain positive, with four wells
completed, as part of our drilling campaign, already showing promising results."
Overview*
Earnings attributable to shareholders for the six months ended 31 December 2016 increased by 19% to
R8,7 billion from R7,3 billion in the prior period. Headline earnings per share (HEPS) decreased by 38% to
R15,12 and earnings per share (EPS) increased by 19% to R14,21 compared to the prior period. Operating
profit decreased by 8% to R13,7 billion compared to the prior period.
Although business performance was mostly in line with our expectations, Sasol's profitability, period on
period, and as reflected in HEPS, was negatively impacted by the following items:
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The strengthening of the Rand against the US dollar to R13,74 at 31 December 2016 (30 June 2016: R14,71) resulted
in translation losses of approximately R1,3 billion on the valuation of the balance sheet, compared to translation
gains of R2,6 billion in the prior period (including foreign exchange contracts). The valuation impact of the
stronger closing exchange rate for the period under review negatively impacted earnings by approximately
R1,46 per share.
-
The impact of the once-off prolonged strike action at our Secunda mining operations resulted in an
additional net cost of R1 billion or R1,06 per share.
-
The reversal of a provision of R2,3 billion (US$166 million) or R3,77 per share in the prior period based on a
favourable ruling received from the Tax Appeal Tribunal in Nigeria relating to the Escravos Gas-to-Liquids
(EGTL) project.
HEPS, normalised for these once-off adjustments and translation effects, amounted to R18,62 per share,
which is 4% higher compared to normalised HEPS for the prior period of R17,96.
* All comparisons refer to the prior period for the six months ended 31 December 2015. All references to years
refer to the financial year ended 30 June. Any reference to a calendar year is prefaced by the word "calendar".
Except for earnings attributable to shareholders and the RP cash conservation measures, all numbers are quoted
on a pre-tax basis.
We have seen a steady and continued recovery in global oil and product prices during the period under
review. Average Brent crude oil prices moved higher by 2% and since December 2016 have moved to the mid
US$50/bbl range, which will positively impact our results during the second half of 2017. Our refining margins
decreased by 32% to US$8,42/bbl, however, we have seen some recovery since the lows of October 2016
which will positively impact on our results in the second half of 2017. Despite the soft commodity chemical
prices experienced during the first quarter of 2017, we have seen a steady increase in demand and resilient
margins in certain key markets during the second quarter of 2017. Despite the volatile macro-economic
environment, the average margin for our speciality chemicals business remained flat, except for
our ammonia business, where margins were squeezed as a result of oversupply in global markets.
Overall, Sasol delivered a strong business performance across most of the value chain. Secunda Synfuels'
production volumes increased by 1% and our Eurasian operations increased production volumes by 5% on
the back of stronger demand. Natref's production volumes were down 7% mainly due to plant shutdowns
during the period under review. Normalised sales volumes increased by 11% for our Base Chemicals business
and 2% for our Performance Chemicals business compared to the prior period mainly on the back of stronger
demand and improved plant stability. Liquid fuels sales volumes decreased by 2% due to the Natref planned
shutdowns and more volumes from Secunda Synfuels Operations (SSO) being allocated to the higher margin
yielding chemical businesses. ORYX GTL achieved an average utilisation rate of 95% with the run-rate of
production in line with our previous market guidance.
Our Secunda mining operations experienced a challenging six months with the onset of a protected strike
action, which commenced in August 2016, by the Association of Mineworkers and Construction Union
(AMCU). Notwithstanding a 16% decrease in mining production volumes resulting from the strike action,
Mining continued to deliver our full coal supply commitment to the integrated Sasol value chain through
external coal purchases and increased gas consumption at Secunda Synfuels Operations. The profitability of
the mining business was significantly impacted by the R1 billion net additional cost as a result of the strike.
We continued to drive our cost containment programme and managed cash fixed costs well below inflation
in nominal terms, when compared to the prior period. Excluding the impact of inflation, our cash fixed costs,
including the mining strike costs, reduced by 1% in real terms compared to the prior period. The strong cost
performance was achieved by sustainable delivery of our Business Performance Enhancement Programme
(BPEP) and Response Plan (RP).
As part of the BPEP, we delivered sustainable cost savings of R4,9 billion, exceeding our December 2016 exit
run rate target by R0,2 billion. We are confident that we will meet or exceed our targeted sustainable savings
at an exit run rate of R5,4 billion by the end of 2018.
Our comprehensive low oil price RP, focusing on cash conservation to counter a lower-for-much-longer
oil price reality, has continued to yield positive cash savings in line with our 2017 targets, despite margin
contraction and difficulties experienced in placing certain product. The RP realised R17,8 billion of cash savings
for the period. We have increased our full year cash savings target from R22 billion to R26 billion, mainly due
to the reprioritisation of our capital portfolio. The RP places the company in a strong position to operate
profitably within a US$40-50/bbl oil price environment. We expect our sustainable cash cost savings from our
RP to be R2,5 billion by 2019, in addition to the R5,4bn sustainable savings from our BPEP.
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The decrease in the effective corporate tax rate from 43,1% to 28,4% was mainly as a result of the R7,4 billion
(CAD665 million) partial impairment of our Canadian shale gas assets in the prior period. The normalised
effective tax rate, excluding equity accounted investments, remeasurements and once-off items, is 29,2%
compared to 32,9% in the prior period due to additional tax incentives.
Actual capital expenditure, including accruals, amounted to R30,2 billion. This includes R17,4 billion
(US$1,2 billion) relating to the Lake Charles Chemicals Project (LCCP). We have revised our capital expenditure
estimate from R75 billion to R66 billion for the full year, largely due to the impact of the stronger rand/US dollar
exchange rate coupled with our cash conservation initiatives and active management of our capital portfolio.
Our net cash position decreased from R52 billion in June 2016 to R28 billion at 31 December 2016, mainly due
to the funding of the LCCP and the effect of a stronger closing rand/US dollar exchange rate. Loans raised
during the period amounted to R2 billion, mainly for the funding of our growth projects.
During the current financial year, Sasol entered into a number of hedges to mitigate specific financial risks
and provide protection against unforeseen movements in oil prices, interest rates, currency movements,
and commodity and final product prices. Approximately 50% of the crude oil exposure was hedged with crude oil
put options for 2017 at a net price of ~US$49,50/bbl. A total net loss of R515 million (US$37 million) was
recognised during the period. To manage the exposure to the US dollar, approximately 12% of the rand/US dollar
exposure was hedged with zero-cost collar instruments at a floor of ~R14,10 for specific periods in 2018.
A net gain of R283 million (US$20 million) was recognised during the period. Should attractive hedges become
available in the market at an acceptable cost, we will enter into additional hedges as mitigation against these
financial risks.
Cash generated by operating activities decreased by 37% to R16,8 billion compared with R26,7 billion in
the prior period. Notwithstanding reduced cash flows, our balance sheet has the capacity to lever up, as
we continue to execute our growth plans and return value to our shareholders. Accordingly, in support of
our funding strategy, gearing increased to 25%, which is consistent with our previous market guidance of
20% to 44%.
To manage the impact of price volatility and the low oil price environment, the Sasol Limited Board (Board)
concluded that our internal gearing ceiling will remain at 44% until the end of 2018. The net debt: EBITDA ratio
is forecasted to be below 2,0 times. We actively manage our capital structure and funding plan to ensure that
we maintain an optimum solvency and liquidity profile.
Our dividend policy is to pay dividends within a dividend cover range based on HEPS. Taking into account the
current volatile macro-economic environment, capital investment plans, our cash conservation initiative,
the current strength of our balance sheet, and the dividend cover range, the Board has declared a gross
interim dividend of R4,80 per share (15,8% lower compared to the prior period). The interim dividend cover was
3,2 times at 31 December 2016 (31 December 2015: 4,3 times). The dividend declared is in accordance with our
dividend cover policy of 2,2x to 2,8x of annual HEPS.
Solid operational performance supported by continued effective cost management
Operating Business Units
Mining - uninterrupted supply to Secunda Synfuels Operations, but negatively impacted by
strike action
Operating profit decreased by 35% to R1 534 million compared to the prior period, mainly as a result of the net
additional cost of the strike action of R1 billion at our Secunda mining operations. Normalised operating profit,
excluding the strike cost, increased by 9% mainly due to higher selling prices to SSO and a 35% increase in
export coal prices. Our normalised unit cost of production increased by 13% above inflation compared to the
prior period due to higher depreciation, enablement and utility costs associated with our new mines and
increased maintenance costs.
Exploration and Production International (E&PI) - strong Mozambique operational delivery
E&PI recorded an operating profit of R204 million compared to an operating loss of R853 million (excluding
the impact of a partial impairment of R7 436 million) in the prior period. Operating profit was positively
impacted by translation gains of R202 million and an 18% decrease in cash fixed costs, underpinned by our
cost containment programme.
Our Mozambican producing operations' operating profit increased from R437 million in the prior period to
R988 million mainly due to a 3% increase in production volumes on the back of increased gas consumption at
SSO and the net positive impact of translation effects of R859 million.
Our Gabon asset recorded a lower operating loss of R41 million compared to a R512 million operating loss in
the prior period, mainly due to lower depreciation charges and higher sales prices. This was offset by a 23%
decrease in production volumes (after royalties) as a result of the deferral of drilling activities in line with our
RP cash saving initiatives.
Our Canadian shale gas assets in Montney generated an operating loss of R312 million, compared to an
operating loss of R333 million (excluding the impact of a partial impairment of R7 436 million) in the prior
period. Our Canadian gas production volumes increased by 3% compared to the prior period, mainly due to
completion activities on existing wells. There were no drilling rigs in operation during the period.
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Strategic Business Units
Performance Chemicals - stronger demand and resilient margins
Operating profit of R4 647 million decreased by 10% compared to the prior period, mainly due to a partial
impairment of R527 million on our US Phenolics business and a significant decrease in global ammonia prices.
Normalising for these effects, operating profit increased by 9%. The increase in operating profit is largely due
to the resilience of margins in our European organics business coupled with increased ethylene sales prices
which positively impacted on the margins of our assets in the US. Production volumes from our European
Operations increased by 5% due to stronger demand.
Total sales volumes increased by 1% compared to the prior period. Normalised sales volumes were up 2%,
after taking into account the ethylene plant shutdown in the US in the prior period and the sale of the US wax
production facility in May 2016.
Our Fischer-Tropsch Wax Expansion Project (FTWEP) (phase one), which is continuing to ramp up, is replacing
hard wax volumes from the existing facility which has been recently decommissioned. Phase two of the
project is expected to reach beneficial operation by the end of quarter three of 2017 resulting in increased
hard wax production during quarter four of 2017 and 2018. Cash fixed costs in nominal rand terms are 1%
lower compared to the prior period.
Base Chemicals - increased sales volumes due to improved production stability
Sales volumes increased by 11% mainly as a result of improved production stability after the commissioning of
the C3 Expansion Project in the prior year.
Operating profit, normalised for the effect of remeasurements, once-off items and translation effects on the
valuation of the balance sheet, remained flat in comparison to the prior year. The business managed to deliver
a solid performance by focusing on delivering higher production and sales volumes and managing costs. While
commodity chemical US dollar prices decreased by 6% compared to the prior period, prices have recovered and are
currently 6,7% higher than the second half of 2016, with this trend expected to continue for at least the
next six months.
Operating profit decreased by 45% to R1 733 million compared to the prior period and the operating margin
decreased from 19% to 10%. Normalised operating profit for the full financial year is estimated at between
R4,5 billion to R5,5 billion, based on the latest business performance and taking into account a much stronger
rand/US dollar exchange rate*.
* This financial forecast is the responsibility of the directors and in accordance with standard practice, it is
noted that this information has not been reviewed and reported on by the company's auditors.
Energy - Strong Synfuels performance, margins under pressure
Operating profit of R5 529 million decreased by R4 732 million or 46% compared to the prior period.
Normalised for the impact of translation effects on the valuation of the balance sheet and other once-off
items, operating profit decreased by 21%. Operating margins were down 4% on a normalised basis. Operating
profit was negatively impacted by a 38% decrease in petrol differentials, a 12% decrease in diesel differentials
and lower liquid fuels sales volumes. In nominal terms, we reduced our cash fixed costs by 2% compared to
the prior period due to our BPEP and RP initiatives and the benefit of increased own electricity generation
at SSO.
Liquid fuel sales volumes decreased by 2% compared to the prior period, mainly due to lower allocated
volumes from SSO, the impact of the Natref plant shutdowns and lower external purchases. Gas sales
volumes were 1% higher compared to the prior period mainly due to higher gas sales to commercial
customers. Our share of power produced at the Central Térmica de Ressano Garcia (CTRG) joint operation in
Mozambique amounted to 334 gigawatt-hours of electricity, 2% higher than the prior period.
The ORYX GTL plant achieved an average utilisation rate of 95% for the period, while maintaining a world-class
safety recordable case rate of zero. Excluding the impact of a once-off tax adjustment at the ORYX GTL plant
in the prior period, our share of profit from joint ventures was 10% higher compared to the prior period.
In Nigeria, the extended EGTL turnaround maintenance programme is scheduled to be completed during the
first quarter of the 2017 calendar year followed by a planned ramp-up in plant production to design capacity.
Advancing projects to enable future growth
We are encouraged by the headway we are making in delivering on our project pipeline:
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Growing our footprint in North America
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Overall construction on the LCCP continues on all fronts, with most engineering and procurement
activities nearing completion during the period. Total capital spent amounts to US$6,0 billion, and the
overall project completion is 64%. The total forecasted capital cost for the project remains within the
approved US$11 billion budget and approved schedule. The project's contingency which, measured
against industry norms for this stage of project completion, is still considered sufficient to effectively
complete the project to beneficial operation (BO) within the US$11 billion budget. Although unplanned
event-driven risks may still impact the execution and cost of the project, we are confident that the
remaining construction, procurement, execution and business readiness risks can be managed within
the budget as a result of these changes. We still consider the LCCP to be a value-based investment
that will return sustainable value to our shareholders for many years into the future. The project
returns are still forecast to be above our weighted average cost of capital (WACC).
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Construction of our 50% joint venture high-density polyethylene plant with Ineos Olefins and
Polymers USA is more than 90% complete and is on track for mechanical completion by the
middle of the 2017 calendar year. The plant will be the largest bi-modal high density polyethylene
(HDPE) manufacturing facility in the US (470 kt per annum) and will produce some of the most cost
competitive performance resins based on InnoveneTM S technology. We continue to work with the
operator (our joint venture partner) to manage construction delays that have mainly resulted from
adverse weather conditions and poor craft labour productivity. Together with our partner, we have
successfully approached the market and attained a favourable reduction in the financing rate for the
remaining term of the facility. The project economics remain strong and returns are currently above
WACC despite the project's cost increase. The market conditions for start-up continue to be favourable
with low feedstock cost and strong polyethylene market demand projected in 2017.
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Focusing on our asset base in Southern Africa
-
Our strategic R14,0 billion mine replacement programme, which will ensure uninterrupted coal
supply to SSO in order to support Sasol's strategy to operate its southern African facilities until
2050, is nearing completion. The total programme is expected to be completed below budget and
within schedule. The Shondoni colliery achieved BO, within budget, during April 2016 and will be
fully completed during the second half of the 2017 calendar year. Phase 2 of the Impumelelo colliery
project for R0,9 billion commenced during the first half of the 2016 calendar year and is on track to be
completed within budget, late in the 2019 calendar year.
-
The expansion of our FTWEP facility in Sasolburg is progressing well. BO for phase two is on track for
the end of the third quarter of 2017. The project economics for this project remain sound. The total
project cost for both phases is estimated at R13,5 billion.
-
The Loop Line 2 project on the Mozambique to Secunda Pipeline (MSP) reached BO ahead of schedule
on 2 November 2016 at a total project cost below budget, while delivering a safety recordable case
rate of zero. Loop Line 2 will increase the MSP's available annual gas transportation capacity from
169,4 bscf to 191 bscf and renders a return in line with our investment hurdle rate.
-
The first phase of the development of the Production Sharing Agreement (PSA) licence area remains
on budget and schedule. To date, four wells have been drilled and completed, two gas wells in the
Temane G8 reservoir and two oil wells in the Inhassoro G6 reservoir. Drilling results have been in line
with expectations. The third oil well (or fifth well) was spudded in early February 2017. In addition,
as part of the PSA programme, the first onshore Mozambique 3D seismic programme has been
successfully undertaken.
Maintaining our focus on sustainable value creation
We continued to deliver on our broader sustainability and community contributions during the period:
-
Safety remains a top priority for Sasol. Regrettably, we did experience the loss of three of our colleagues
during the period. Our thoughts remain with these colleagues' families and friends. Our safety RCR for
employees and service providers, excluding illnesses, improved to 0,27 at 31 December 2016 (0,32 as at
31 December 2015). We retain our focus on safety and strive for zero harm.
-
During the period, we invested R471 million in skills development and socioeconomic development, which
includes our Ikusasa programme, bursaries, learnerships and artisan training programmes. The Ikusasa
programme focuses on education, health and wellbeing, infrastructure, and safety and security in the
Secunda and Sasolburg regions. Since 2013, we have invested R618 million, of which R21 million was spent
in Secunda and Sasolburg during the period. A further R68 million is planned for the remainder of 2017.
The total planned Ikusasa investment amounts to R800 million, with the remaining R114 million to be
spent by 2020.
-
While we support the transition to a lower carbon economy, we are concerned that the proposed carbon
tax in South Africa will diminish the country's competitiveness. It also cannot address the structural issues
that lie at the heart of the country's carbon intensity. The proposed design of the carbon tax creates
substantial regulatory and investment uncertainty as there is insufficient clarity relating to the phases
of the tax proposed in the draft carbon tax bill, especially post 2020. This is exacerbated by the fact
that the carbon tax is not aligned with the carbon budget system which is currently in the trial phase of
implementation. Sasol continues to engage with the South African Government on the carbon tax issue.
-
To ensure our ongoing compliance with new air quality regulations in South Africa, Sasol applied for
certain postponements to manage our short-term challenges relating to the compliance timeframes.
We have received decisions on our postponement applications from the National Air Quality Officer, which,
while aligned with our requests, imposed stretched targets in terms of our atmospheric emission licences.
In some cases shorter postponement were granted and further applications are under way to extend
compliance timeframes in line with our committed roadmaps. Our R3,3 billion volatile organic compound
abatement programme remains on track to achieve our targeted reductions of volatile organic compounds
emissions by 2020.
-
We continue to measure our comprehensive climate change response in accordance with our key
performance indicators. Our total greenhouse gas (GHG) emissions globally for the six months ended
31 December 2016 were 33,8 million tons compared to 34,5 million tons for the prior period. Our GHG
emissions intensity (measured in carbon dioxide equivalent per ton of production) increased to 3,71
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compared to 3,68 at June 2016 as a result of lower production (due to planned shutdowns). GHG targets in
South Africa are being developed in conjunction with the South African government's process for setting
carbon budgets.
-
Our improvement in utility Energy Intensity Index (EII) marginally increased above our internal target
of 1% improvement for the period to 2% for our operations in South Africa. Including our international
operations, we improved our EII by 1,8% from the previous financial year.
-
During the period, we paid R15,4 billion in direct and indirect taxes to the South African Government.
Sasol remains one of the largest corporate taxpayers in South Africa, contributing significantly to the
country's economy.
-
In 2016, in terms of the Department of Trade and Industry's revised Codes of Good Practice, our B-BBEE
contributor status declined to level 8 from level 4. We view B-BBEE in South Africa as a business
imperative and have embarked on a project to realise the targets set to improve our rating by 2020.
Profit outlook* - strong production performance and cost reductions to continue
The current economic climate remains volatile and uncertain. While oil price and foreign exchange movements
are outside our control and may impact on 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 cash conservation.
We expect an overall strong operational performance for 2017, with:
-
Liquid fuels sales volumes for the Energy business in southern Africa to be approximately 61 million
barrels;
-
Base Chemicals sales volumes to be between 4% to 6% higher than the prior year, with US dollar product
prices recovering;
-
Performance Chemicals sales volumes to be between 1% to 2% higher, with average margins for the
business remaining resilient;
-
An average utilisation rate at ORYX GTL in Qatar of above 90% for the remainder of the financial year;
-
Normalised cash fixed costs to remain in line with SA PPI;
-
The RP cash flow contribution to range between R22 billion and R26 billion;
-
BPEP cash cost savings to achieve an annual run rate of R5,4 billion by 2018;
-
Capital expenditure, including capital accruals, of R66 billion for 2017 and R60 billion in 2018 as we
progress with the execution of our growth plan and strategy. Capital estimates may change as a result of
exchange rate volatility;
-
Our balance sheet gearing up to a level of between 30% and 35%, with net debt:EBITDA being managed to
below 2,0 times;
-
Average Brent crude oil prices expected to remain between US$50/bbl and US$55/bbl; and
-
Ongoing rand/US dollar volatility due to various factors, including the pending outcome of the next review
of the South African sovereign credit rating and capital inflows.
* The financial information contained in this profit outlook and other financial forecasts mentioned elsewhere
in the financial overview are the responsibility of the directors and in accordance with standard practice,
it is noted that this information has not been reviewed and reported on by the company's auditors.
Competition law compliance
The South African Competition Commission is conducting proceedings against various petroleum products
producers, including Sasol. The Competition Commission is conducting an investigation into Sasol's South
African polymer business, and it is finalising a market inquiry in the South African LPG market. We continue
to interact and co-operate with the South African Commission in respect of the subject matter of current
applications brought by Sasol, as well as in the areas that are subject to the Commission's investigations.
To the extent appropriate, further announcements will be made in future.
Change in directors
Ms VN Fakude resigned as Executive Director and Executive Vice-President, Strategy and Sustainability with
effect from 31 December 2016.
Declaration of cash dividend number 75
An interim gross cash dividend of South African 480,00 cents per ordinary share (31 December 2015 - 570,00 cents
per ordinary share) has been declared for the six months ended 31 December 2016. The interim 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. The dividend has been declared out of retained earnings (income reserves). With effect
from 22 February 2017, the South African dividend withholding tax rate is 20%. At the declaration date, there
are 651 389 516 ordinary (including 8 809 886 treasury shares), 25 547 081 preferred ordinary and
2 838 565 Sasol BEE ordinary shares in issue. The net dividend amount payable to ordinary shareholders who
are not exempt from the dividend withholding tax, is 384,00 cents per share, while the dividend amount payable
to ordinary shareholders who are exempt from dividend withholding tax is 480,00 cents per share.
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The salient dates for holders of ordinary shares and Sasol BEE ordinary shares are:
Declaration date
Monday, 27 February 2017
Last day for trading to qualify for and participate in the final dividend
(cum dividend)
Tuesday, 14 March 2017
Trading ex-dividend commences
Wednesday, 15 March 2017
Record date
Friday, 17 March 2017
Dividend payment date (electronic and certificated register)
Monday, 20 March 2017
The salient dates for holders of our American Depository Receipts are(1):
Ex-dividend on New York Stock Exchange (NYSE)
Wednesday, 15 March 2017
Record date
Friday, 17 March 2017
Approximate date for currency conversion
Wednesday, 22 March 2017
Approximate dividend payment date
Friday, 31 March 2017
1. All dates are approximate as the NYSE sets the record date after receipt of the dividend declaration.
On Monday, 20 March 2017, 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, 20 March 2017. Share certificates may not be
dematerialised or rematerialised between 15 March 2017 and 17 March 2017, both days inclusive.
On behalf of the Board
Mandla Gantsho Bongani Nqwababa Stephen Cornell Paul Victor
Chairman Joint President and Chief Joint President and Chief Chief Financial Officer
Executive Officer Executive Officer
Sasol Limited
24 February 2017
The interim financial statements are presented on a condensed consolidated basis.
Income statement
for the period ended
Full year
Half year
Half year
Half year
Half year
Full year
30 Jun 16
31 Dec 15
31 Dec 16
31 Dec 16
31 Dec 15
30 Jun 16
Audited
Reviewed
Reviewed
Reviewed
Reviewed
Audited
US$m*
US$m*
US$m*
Rm
Rm
Rm
11 911
6 202
6 068
Turnover
84 895
84 475
172 942
Materials, energy and
(4 912)
(2 596)
(2 526)
consumables used
(35 342)
(35 361)
(71 320)
(476)
(273)
(238)
Selling and distribution costs
(3 331)
(3 718)
(6 914)
(582)
(285)
(294)
Maintenance expenditure
(4 119)
(3 878)
(8 453)
(1 647)
(868)
(851)
Employee-related expenditure
(11 911)
(11 816)
(23 911)
Exploration expenditure and
(20)
(10)
(13)
feasibility costs
(182)
(142)
(282)
(1 127)
(588)
(584)
Depreciation and amortisation
(8 174)
(8 006)
(16 367)
(625)
23
(552)
Other expenses and income
(7 719)
307
(9 073)
10
61
(25)
Translation gains/(losses)
(341)
829
150
(635)
(38)
(527)
Operating expenses**
(7 378)
(522)
(9 223)
(888)
(557)
(55)
Remeasurement items
(771)
(7 586)
(12 892)
Equity accounted profits,
35
47
23
net of tax
326
641
509
1 669
1 095
978
Operating profit
13 672
14 916
24 239
125
53
58
Finance income
807
719
1 819
(161)
(79)
(101)
Finance costs
(1 409)
(1 080)
(2 340)
1 633
1 069
935
Profit before tax
13 070
14 555
23 718
(598)
(461)
(266)
Taxation
(3 719)
(6 277)
(8 691)
1 035
608
669
Profit after tax
9 351
8 278
15 027
Attributable To
911
537
621
Owners of Sasol Limited
8 676
7 312
13 225
Non-controlling interests in
124
71
48
subsidiaries
675
966
1 802
1 035
608
669
9 351
8 278
15 027
US$
US$
US$
Earnings per share
Rand
Rand
Rand
1,49
0,88
1,02
Basic earnings per share
14,21
11,97
21,66
1,49
0,88
1,02
Diluted earnings per share
14,20
11,97
21,66
* Supplementary non-IFRS information. US dollar convenience translation, converted at average exchange rate
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of R13,99/US$1 (31 December 2015 - R13,62/US$1; 30 June 2016 - R14,52/US$1).
** A loss of R975 million (31 December 2015 - R1 753 million gain; 30 June 2016 - R920 million gain) arising
from foreign exchange contracts (FECs) has been reclassified from translation gains and losses, to other
operating expenses and income, in accordance with the recognition of other derivative gains and losses.
Other operating expenses include rental, computer and insurance costs of R1 946 million (31 December 2015 -
R1 831 million; 30 June 2016 - R3 532 million), derivative losses including FECs of R1 305 million
(31 December 2015 - R2 506 million gain; 30 June 2016 - R1 250 million gain), the reversal of the EGTL
provision of Rnil (31 December 2015 - R2 296 million; 30 June 2016 - R2 296 million), and rehabilitation
related costs due to new legislation at Sasolburg Operations and changes in the discount rate of R391 million
(31 December 2015 - R341 million gain; 30 June 2016 - R1 946 million gain).
Statement of comprehensive income
for the period ended
Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Reviewed
Reviewed
Audited
Rm
Rm
Rm
Profit after tax
9 351
8 278
15 027
Other comprehensive income, net of tax
Items that can be subsequently reclassified to the
income statement
(6 173)
18 995
13 253
Effect of translation of foreign operations*
(7 414)
19 422
15 112
Effect of cash flow hedges**
1 985
(558)
(2 855)
Fair value of investments available for sale
1
(17)
(7)
Tax on items that can be subsequently reclassified to the
income statement
(745)
148
1 003
Items that cannot be subsequently reclassified to the
income statement
491
555
(546)
Remeasurements on post-retirement benefit obligations
739
740
(877)
Tax on items that cannot be subsequently reclassified to the
income statement
(248)
(185)
331
Total comprehensive income for the period
3 669
27 828
27 734
Attributable to
Owners of Sasol Limited
3 045
26 753
25 890
Non-controlling interests in subsidiaries
624
1 075
1 844
3 669
27 828
27 734
*
The impact of a stronger Rand at 31 December 2016 (R13,74/US$, R14,45/EUR) resulted in the translation loss recognised
in other comprehensive income. At 31 December 2015 and 30 June 2016, the weaker Rand (R15,48/US$, R16,81/EUR and
R14,71/US$, R16,33/EUR, respectively) resulted in significant translation gains recognised in other comprehensive income
in the prior periods.
**   Includes the impact of a R116 million (31 December 2015 - Rnil; 30 June 2016 - R97 million) reclassification to profit
and loss, relating to the interest rate swap. A gain of R2 billion (US$145 million) was recognised in other comprehensive
income during the period as a result of the significant decrease in the liability related to the interest rate swap,
which occurred due to the interest rate curves trading significantly higher than at 30 June 2016.
Statement of financial position
At
Full year
Half year
Half year
Half year
Half year
Full year
30 Jun 16
31 Dec 15
31 Dec 16
31 Dec 16
31 Dec 15
30 Jun 16
Audited
Reviewed
Reviewed
Reviewed
Reviewed
Audited
US$m*
US$m*
US$m*
Rm
Rm
Rm
Assets
10 541
9 440
11 364
Property, plant and equipment
156 120
146 039
155 054
7 071
5 737
8 456
Assets under construction
116 176
88 751
104 011
Goodwill and other intangible
182
190
177
assets
2 428
2 945
2 680
892
975
875
Equity accounted investments
12 024
15 088
13 118
42
41
45
Post-retirement benefit assets
625
638
614
230
149
240
Deferred tax assets
3 301
2 308
3 389
252
206
330
Other long-term assets
4 527
3 193
3 715
19 210
16 738
21 487
Non-current assets
295 201
258 962
282 581
Assets in disposal groups held
72
18
66
for sale
905
273
1 064
1 618
1 595
1 766
Inventories
24 261
24 667
23 798
2 102
2 047
2 072
Trade and other receivables
28 471
31 659
30 913
3
70
37
Short-term financial assets
514
1 083
42
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158
348
135
Cash restricted for use
1 852
5 380
2 331
3 398
3 633
1 879
Cash and cash equivalents
25 813
56 201
49 985
7 351
7 711
5 955
Current assets
81 816
119 263
108 133
26 561
24 449
27 442
Total assets
377 017
378 225
390 714
Equity and liabilities
14 072
13 661
14 931
Shareholders' equity
205 135
211 341
206 997
368
334
397
Non-controlling interests
5 451
5 167
5 421
14 440
13 995
15 328
Total equity
210 586
216 508
212 418
5 303
4 289
5 438
Long-term debt
74 707
66 343
78 015
193
63
45
Long-term financial liabilities
621
977
2 844
1 279
1 031
1 238
Long-term provisions
17 006
15 951
18 810
Post-retirement benefit
864
718
814
obligations
11 184
11 114
12 703
43
33
52
Long-term deferred income
715
517
631
611
1 705
1 855
Deferred tax liabilities
25 483
26 372
23 691
9 293
7 839
9 442
Non-current liabilities
129 716
121 274
136 694
Liabilities in disposal groups
-
3
-
held for sale
-
48
-
136
157
165
Short-term debt
2 271
2 435
2 000
58
16
55
Short-term financial liabilities
759
243
855
2 625
2 399
2 444
Other current liabilities
33 582
37 098
38 611
9
40
8
Bank overdraft
103
619
136
2 828
2 615
2 672
Current liabilities
36 715
40 443
41 602
26 561
24 449
27 442
Total equity and liabilities
377 017
378 225
390 714
*   Supplementary non-IFRS information. US dollar convenience translation, converted at closing rate of
R13,74/US$1 (31 December 2015 - R15,48/US$1; 30 June 2016 - R14,71/US$1).
Statement of changes in equity
for the period ended
Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Reviewed
Reviewed
Audited
Rm
Rm
R
Balance at beginning of period
212 418
196 483
196 483
Shares issued on implementation of share options
-
54
Share-based payment expense
98
64
123
Long-term incentive scheme converted to equity
645
-
-
Total comprehensive income for the period
3 669
27 828
27 734
Dividends paid to shareholders
(5 650)
(7 140)
(10 680)
Dividends paid to non-controlling shareholders in subsidiaries
(594)
(781)
(1 296)
Balance at end of period
210 586
216 508
212 418
Comprising
Share capital
29 282
29 282
29 282
Share repurchase programme
(2 641)
(2 641)
(2 641)
Retained earnings
167 944
162 546
164 917
Share-based payment reserve
(12 839)
(13 642)
(13 582)
Foreign currency translation reserve
25 946
37 605
33 316
Remeasurements on post-retirement benefit obligations
(2 037)
(1 419)
(2 533)
Investment fair value reserve
24
15
26
Cash flow hedge accounting reserve
(544)
(405)
(1 788)
Shareholders' equity
205 135
211 341
206 997
Non-controlling interests in subsidiaries
5 451
5 167
5 421
Total equity
210 586
216 508
212 418
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Statement of cash flows
for the period ended
Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Reviewed
Reviewed
Audited
Rm
Rm
Rm
Cash receipts from customers
84 341
87 885
175 994
Cash paid to suppliers and employees
(67 505)
(61 205)
(121 321)
Cash generated by operating activities
16 836
26 680
54 673
Dividends received from equity accounted investments
465
744
887
Finance income received
793
688
1 633
Finance costs paid
(1 587)
(955)
(3 249)
Tax paid
(3 010)
(5 195)
(9 329)
Dividends paid
(5 650)
(7 140)
(10 680)
Cash retained from operating activities
7 847
14 822
33 935
Total additions to non-current assets
(29 806)
(31 336)
(67 158)
Additions to non-current assets
(30 248)
(33 559)
(70 409)
Increase in capital project related payables
442
2 223
3 251
Settlement of funding commitment on Canadian assets
-
-
(3 339)
Additional investments in equity accounted investments
(124)
(251)
(548)
Proceeds on disposals of assets
125
25
569
Other net cash flow from investing activities
161
(433)
(558)
Cash used in investing activities
(29 644)
(31 995)
(71 034)
Share capital issued on implementation of share options
-
54
54
Dividends paid to non-controlling shareholders in subsidiaries
(595)
(781)
(1 296)
Proceeds from long-term debt
1 182
19 025
34 008
Repayments of long-term debt
(1 227)
(2 070)
(3 120)
Proceeds from short-term debt
860
1 918
2 901
Repayments of short-term debt
(850)
(2 328)
(3 369)
Cash (used)/generated by financing activities
(630)
15 818
29 178
Translation effects on cash and cash equivalents
(2 162)
9 285
7 069
(Decrease)/increase in cash and cash equivalents
(24 589)
7 930
(852)
Cash and cash equivalents at beginning of period
52 180
53 032
53 032
Reclassification to held for sale
(29)
-
-
Cash and cash equivalents at end of period
27 562
60 962
52 180
Salient features
for the period ended
Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Selected ratios
Return on equity
%
8,3*
7,4*
6,6
Operating profit margin
%
16,1
17,7
14,0
Finance costs cover
times
9,1
16,4
8,0
Net borrowings to shareholders' equity (gearing)
%
25,0
6,2
14,6
Dividend cover - attributable basic earnings
per share
times
3,0
2,1
1,5
Dividend cover - headline earnings per share
times
3,2
4,3
2,8
* Annualised.
Share statistics
Total shares in issue
million
679,8
679,8
679,8
Sasol ordinary shares in issue
million
651,4
651,4
651,4
Treasury shares (share repurchase programme)
million
8,8
8,8
8,8
Weighted average number of shares
million
610,7
610,6
610,7
Diluted weighted average number of shares
million
610,9
610,6
610,7
Share price (closing)
Rand
398,90
419,40
397,17
Market capitalisation - Sasol ordinary shares
Rm
259 843
273 197
258 717
Market capitalisation - Sasol BEE ordinary shares
Rm
826
778
892
Net asset value per share
Rand
337,45
347,66
340,51
Dividend per share
Rand
4,80
5,70
14,80
- interim
Rand
4,80
5,70
5,70
- final
Rand
-
-
9,10
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Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Other financial information
Total debt (including bank overdraft)
Rm
77 081
69 397
80 151
- interest-bearing
Rm
75 967
69 192
79 175
- non-interest-bearing
Rm
1 114
205
976
Finance expense capitalised
Rm
1 315
1 127
2 253
Capital commitments (subsidiaries and joint
operations)(1)
Rm
111 829
119 302
137 286
- authorised and contracted
Rm
144 851
147 992
143 380
- authorised, not yet contracted
Rm
78 473
58 261
95 590
- less expenditure to date
Rm
(111 495)
(86 951)
(101 684)
Capital commitments (equity accounted
investments)
Rm
552
765
608
- authorised and contracted
Rm
291
1 175
175
- authorised, not yet contracted
Rm
492
672
756
- less expenditure to date
Rm
(231)
(1 082)
(323)
Guarantees (excluding treasury facilities)
- maximum potential exposure
Rm
92 670
106 595
98 312
- related debt recognised on the balance sheet
Rm
68 161
56 558
71 252
Share-based payment expenses
Rm
125
482
494
- Sasol cash settled share incentive schemes
Rm
27
418
371
- Sasol equity settled share incentive schemes
Rm
59
-
-
- Sasol Inzalo share transaction
Rm
39
64
123
Effective tax rate
%
28,4
43,1
36,6
Adjusted effective tax rate(2)
%
29,2
32,9
28,2
Number of employees(3)
number
30 300
30 369
30 100
Average crude oil price - dated Brent
US$/barrel
47,68
46,97
43,37
Average rand/US$ exchange rate
1US$ = Rand
13,99
13,62
14,52
Closing rand/US$ exchange rate
1US$ = Rand
13,74
15,48
14,71
1   Excludes significant commitments under leases relating to the air separation unit in Secunda, estimated to be in a range of
R4,5 billion - R6,5 billion.
2   Effective tax rate adjusted for equity accounted investments, remeasurement items and once-off items.
3   The total number of employees includes permanent and non-permanent employees and the group's share of employees
within joint operations, but excludes contractors and equity accounted investments' employees.
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Half year
Half year
Full year
31 Dec 16
31 Dec 15
30 Jun 16
Rm
Rm
Rm
Reconciliation of headline earnings
Earnings attributable to owners of Sasol Limited
8 676
7 312
13 225
Effect of remeasurement items for subsidiaries and
joint operations
771
7 586
12 892
Impairment of property, plant and equipment
442
5 470
8 424
Impairment of assets under construction
191
1 988
3 586
Impairment of goodwill and other intangible assets
102
-
310
Impairment of other assets
-
207
-
Reversal of impairment
(29)
-
-
Loss/(profit) on disposal of non-current assets
4
21
(389)
(Profit)/loss on disposal of investments in
businesses
(11)
(51)
226
Scrapping of non-current assets
72
230
1 099
Write-off of unsuccessful exploration wells
-
(3)
(3)
Realisation of foreign currency translation reserve
-
(276)
(361)
Tax effects and non-controlling interests
(223)
(79)
(846)
Effect of remeasurement items for equity
accounted investments
11
7
13
Headline earnings
9 235
14 826
25 284
Headline earnings adjustments per above
- Mining
-
12
31
- Exploration and Production International
152
7 450
9 963
- Energy
25
4
1 267
- Base Chemicals
74
52
1 723
- Performance Chemicals
520
271
55
- Group Functions
-
(203)
(147)
Remeasurement items
771
7 586
12 892
Headline earnings per share
Rand
15,12
24,28
41,40
Diluted headline earnings per share
Rand
15,12
24,28
41,40
The reader is referred to the definitions contained in the 2016 Sasol Limited financial statements.
Basis of preparation
The condensed consolidated interim financial statements for the six months ended 31 December 2016 have
been prepared in accordance with International Financial Reporting Standards, IAS 34, Interim Financial
Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements
of the Companies Act of South Africa, 2008, as amended, and the JSE Limited Listings Requirements.
The condensed consolidated interim financial statements do not include all the disclosure required for
complete annual financial statements prepared in accordance with IFRS as issued by the International
Accounting Standards Board. The condensed consolidated interim financial statements are prepared on a
going-concern basis. The Board is satisfied that the liquidity and solvency of the Company is sufficient to
support the current operations for the next 12 months.
These condensed consolidated interim financial statements have been prepared in accordance with the
historic cost convention except that certain items, including derivative instruments, liabilities for cash-
settled share-based payment schemes, financial assets at fair value through profit or loss and available-
for-sale financial assets, are stated at fair value.
The condensed consolidated interim financial statements are presented in South African rand, which is Sasol
Limited's functional and presentation currency.
The condensed consolidated interim financial statements appearing in this announcement are the
responsibility of the directors. The directors take full responsibility for the preparation of the condensed
consolidated interim financial statements. Paul Victor CA(SA), Chief Financial Officer, is responsible for this
set of condensed consolidated interim financial statements and has supervised the preparation thereof in
conjunction with the Senior Vice-President: Financial Control Services, Brenda Baijnath CA(SA).
Accounting policies
The accounting policies applied in the preparation of these summarised consolidated interim financial
statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial
statements for the year ended 30 June 2016.
Related party transactions
The group, in the ordinary course of business, entered into various sale and purchase transactions on an arm's
length basis at market rates with related parties.
Significant events and transactions since 30 June 2016
In accordance with IAS34, Interim Financial Reporting, we have included an explanation of events and
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transactions which are significant to obtain an understanding of the changes in our financial position and
performance since 30 June 2016 in the financial results overview.
Financial instruments
Fair value
Fair value is determined using valuation techniques as outlined unless the instrument is listed in an active
market. Where possible, inputs are based on quoted prices and other market determined variables.
Fair value hierarchy
The table below represents significant financial instruments measured at fair value at the reporting date,
or for which fair value is disclosed at 31 December 2016. The US dollar bond, interest rate swap, crude oil
put options, zero-cost foreign exchange collars and coal swaps were considered to be significant financial
instruments based on the amounts recognised in the statement of financial position and the fact that
these instruments are traded in an active market. The calculation of fair value requires various inputs into
the valuation methodologies used. The source of the inputs used affects the reliability and accuracy of the
valuations. Significant inputs have been classified into the hierarchical levels in line with IFRS 13.
Level 1 Quoted prices in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices that are observable for the asset or liability (directly or indirectly).
Level 3 Inputs for the asset or liability that are unobservable.
IFRS 13
Carrying
fair value
value
Fair value
Instrument
hierarchy
Rm
Rm
Valuation method
Significant inputs
Listed long-term debt
Level 1
13 819
13 725
Fair value
Quoted market
price for the
same or similar
instruments
Interest rate swap
Level 2
(1 009)
(1 009)
Discounted expected
Market interest
cash flows
rate
Coal swaps
Level 2
(30)
(30)
Discounted expected
cash flows
Coal prices
Crude oil put options
Level 2
233
233
Numerical
approximation
Crude oil prices
Zero-cost foreign
Numerical
rand/US dollar
exchange collar
Level 2
278
278
approximation
exchange rate
For all other financial instruments, fair value approximates carrying value.
Independent review by the auditors
These condensed consolidated interim financial statements, including the segment report for the six months
ended 31 December 2016 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified
conclusion thereon. The individual auditor assigned to perform the review is Mr PC Hough. A copy of the auditor's
unmodified review report on the condensed consolidated interim financial statements is available for inspection
at the company's registered office, together with the condensed consolidated interim financial statements
identified in the auditor's report. The auditor's report does not necessarily report on all of the information
contained in this announcement of interim financial results. Shareholders are therefore advised that in order to
obtain a full understanding of the nature of the auditor's engagement they should obtain a copy of the auditor's
report together with the accompanying condensed consolidated interim financial statements from the company's
registered office.
Registered office: Sasol Place, 50 Katherine Street, Sandton, Johannesburg 2196
PO Box 5486, Johannesburg 2000, South Africa
Share registrars: Computershare Investor Services (Pty) Ltd, 15 Bierman Avenue, Rosebank 2196
PO Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370-7700 Fax: +27 11 370-5271/2
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Directors (Non-Executive): Dr MSV Gantsho* (Chairman), Mr C Beggs*, Mr MJ Cuambe (Mozambican)*,
Mr HG Dijkgraaf (Dutch)^, Ms NNA Matyumza*, Ms IN Mkhize*, Mr ZM Mkhize*, Mr MJN Njeke*,
Mr PJ Robertson (British and American)*, Mr S Westwell (British)*
Directors (Executive): Mr SR Cornell (Joint President and Chief Executive Officer) (American), Mr B Nqwababa
(Joint President and Chief Executive Officer) , Mr P Victor (Chief Financial Officer)
*Independent ^Lead independent director
Company Secretary: Mr VD Kahla
Company registration number: 1979/003231/06, incorporated in the Republic of South Africa
Income tax reference number: 9520/018/60/8
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JSE
NYSE
Ordinary shares
Share code:
SOL
SSL
ISIN:
ZAE000006896
US8038663006
Sasol BEE Ordinary shares
Share code:
SOLBE1
ISIN:
ZAE000151817
American depository receipts (ADR) program:
Cusip number 803866300 ADR to ordinary share 1:1
Depositary: The Bank of New York Mellon, 22nd Floor, 101 Barclay Street, New York, NY 10286, United States
of America
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 and cost reductions, including
in connection with our BPEP and RP. 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 27 September 2016 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. Normalised items include the effect of the closing rate between
2017 and 2016, share-based payments, remeasurement items, once-off rehabilitation provisions recognised due to legislation
changes and once-off tax adjustments.
Comprehensive additional information is available on our website: www.sasol.com
www.sasol.com







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Sasol Limited, has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date February 27, 2017



By:
/s/ V D Kahla
Name: Vuyo Dominic Kahla
Title: Company Secretary
_______________


This regulatory filing also includes additional resources:
sasol.pdf
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