JOHANNESBURG, July 25, 2017 /PRNewswire/ --
Sasol's earnings per share (EPS) for the financial year ended
30 June 2017 are expected to increase
by between 48% and 58% (approximating R10,40 to R12,56 per share)
compared to the 2016 financial year (prior year) EPS of R21,66.
Headline earnings per share (HEPS) for the same year are expected
to decrease by between 11% and 21% (approximating R4,55 to R8,69
per share) from the prior year HEPS of R41,40. The prior year EPS
was negatively impacted by the R9,9 billion impairment of our
Canadian shale gas assets.
Sasol delivered a strong business performance across most of the
value chain, with our Secunda Synfuels Operations reporting record
volumes and our Eurasian Operations delivering their highest
production volumes since 2015. However, continued volatility in the
macro-economic environment, particularly the stronger rand and low
oil price, has adversely impacted our financial performance.
Excluding the effect of our hedging programme, the average rand/US
dollar market exchange rate strengthened by 6% from R14,52 in 2016
to R13,61, and the closing rand/US dollar market exchange rate
strengthened by 11% from R14,71 to R13,06. This was partially
offset by a 15% higher average Brent crude oil price of
US$49,77/bbl (30 June 2016 - US$43,37/bbl).
The highlights of our operational performance can be summarised
as follows:
- Secunda Synfuels Operations increased production volumes by 1%
to a record 7,83 million tons;
- Natref production volumes decreased by 5%. Plant shutdowns
during the first half of the year contributed to a 3% decrease in
production volumes and the plant incident on 22 May 2017, which resulted in unintended
downtime, led to a 2% reduction in production volumes;
- Our Eurasian Operations increased production volumes by 6% on
the back of stronger product demand;
- ORYX GTL achieved a utilisation rate of 95% compared to 81% in
the previous year;
- Our Performance Chemicals business reported a 2% increase in
sales volumes, which is at the upper end of our market guidance,
mainly as a result of stronger demand, higher chemical margins and
improved plant stability. Our Base Chemicals sales volumes
increased by 3%, slightly below market guidance, due to a fire at
one of our third party warehouses; and
- Liquid fuels sales volumes in our Energy Business decreased by
2% due to a higher portion of production volumes from Secunda
Synfuels Operations allocated to our higher margin yielding
chemical businesses and lower Natref production volumes.
Sasol's earnings were impacted by the following notable once off
and period close items:
HEPS EPS
Translation losses arising from a stronger closing rand/US
dollar market exchange rate at 30 June 2017 (R2,53) (R2,53)
Mark-to-market valuation of oil and foreign exchange
hedges using a forward rate at 30 June 2017 R2,05 R2,05
Net remeasurement items - (R1,82)
Increase in rehabilitation provisions (R0,51) (R0,51)
Provision for tax litigation claims (R1,49) (R1,49)
Impact of labour actions at Sasol Mining in the first half
of the financial year (R1,06) (R1,06)
Included in remeasurement items is a partial impairment of our
North American GTL project amounting to R1, 7 billion (US$130 million) and the reversal of a partial
impairment of the Lake Charles Chemicals Project (LCCP) amounting
to R0, 8 billion (US$65 million),
which resulted from lower spot discount rates and the extension of
the useful life of the project to 50 years.
A detailed production summary and key business performance
metrics for the financial year for all our businesses is available
on our website, http://www.sasol.com. Our results for the
financial year may be further affected by adjustments resulting
from our financial year-end closure process. This may result in a
change in the estimated earnings noted above. 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 2017 will be announced
on Monday, 21 August 2017.
Sponsor: Deutsche Securities (SA) Proprietary Limited
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Investor relations:
Cavan Hill
Senior Vice President
Investor Relations
Telephone: +27(0)10-344-9280
SOURCE Sasol Limited