Sasol Hedges 45,000 Barrels Per Day of Its South African Synthetics Fuels Production
June 28 2006 - 12:48PM
PR Newswire (US)
JOHANNESBURG, South Africa, June 28 /PRNewswire-FirstCall/ -- Sasol
(JSE - SOL; NYSE - SSL) announces that it has, for its 2007
financial year which commences 1 July 2006, entered into hedging
transactions (zero cost collars) for 45 000 barrels of oil per day
(equivalent to approximately 30% of its South African synfuels
production). In terms of this hedge Sasol will be protected should
monthly average dated Brent crude oil prices decrease below
US$63,00 per barrel on the hedged portion of production, and
conversely Sasol will incur opportunity losses on the hedged
portion of production should monthly average oil prices exceed an
average US$83,60 per barrel. This is in line with Sasol's approach
to consider oil price hedging on an annual basis to improve the
stability and predictability of its cash flows. The zero cost
collar structure is similar to the oil price hedging concluded for
the 2006 financial year when a floor price of US$45 per barrel was
achieved and upside was limited to US$83 per barrel, also on 45 000
barrels of oil per day. During the 2006 financial year oil prices
did not fall below US$45 per barrel or increase above US$83 per
barrel and no cash flows, therefore, emanated from the hedging.
Appropriate disclosure of this hedging will also be made in our
2006 annual report and Form 20-F. The Sasol Investor Relations team
Tel.: +27 11 441 3113/3563/3321 Forward looking statements We may
in this document make statements that are not historical facts and
relate to analyses and other information based on forecasts of
future results and estimates of amounts not yet determinable. There
are forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as "believe,"
"anticipate," "expect," "intend," "seek," "will," "plan," "could,"
"may," "endeavour" and "project" and similar expressions are
intended to identify such forward-looking statements, but are not
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
predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks
materialize, or should underlying assumptions prove incorrect,
actual results may be very different from those anticipated. The
factors that could cause our actual results to differ materially
from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements are discussed more
fully in our annual report under the Securities Exchange Act of
1934 on Form 20-F filed on October 26, 2005 and in other filings
with the United States Securities and Exchange Commission.
Forward-looking statements apply only as of the date on which they
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