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 March 12, 2012
Commission File Number 1-31615
Sasol Limited
1 Sturdee Avenue
Rosebank 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: Sasol Limited reviewed interim financial results for
the six months ended 31 December 2011
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")
Sasol Limited reviewed interim financial results
for the six months ended 31 December 2011
Pursuing sustainable value creation
Driven by innovation, Sasol is an international integrated
energy and chemicals company that creates value through its
proven alternative fuel technology and talented people to
provide sustainable energy solutions to the world.
* Solid group operational performance
* Operating profit up by 70% to R20,5 billion
* Headline earnings per share up by 81% to R23,50
* Interim dividend up by 84% to R5,70 per share
* Cash generated by operations up by 50% to R22,7 billion
Segment report
for the period ended
Turnover
R million
Business
unit
analysis
Operating profit
R million
full
year
30 Jun
11
Audited
half
year
31 Dec
10
Reviewed
half
year
31 Dec
11
Reviewed
half
year
31 Dec
11
Reviewed
half
year
31 Dec
10
Reviewed
full
year
30 Jun
11
Audited
106 860
48 005
63 057
South
African
energy
cluster
13 469
7 447
19 947
9 146
4 263
5 107
Mining
1 002
140
1 063
5 445
2 697
3 292
Gas
1 461
1 282
2 578
37 485
15 664
22 337
Synfuels
9 909
5 389
15 188
54 784
25 381
32 321
Oil
1 099
665
1 180
-
-
-
Other
(2)
(29)
(62)
5 872
2 824
4 416
Internationa
l
energy
cluster
1 154
872
1 587
3 715
1 846
2 910
Synfuels
Internationa
l
1 033
539
1 205
2 157
978
1 506
Petroleum
Internationa
l
121
333
382
82 854
39 637
47 162
Chemical
cluster
4 339
3 453
8 712
17 082
8 234
9 398
Polymers
546
574
1 579
17 280
8 120
9 082
Solvents
1 115
440
1 655
31 715
14 636
19 493
Olefins &
Surfactants
1 660
1 600
4 161
16 777
8 647
9 189
Other
chemical
businesses
1 018
839
1 317
6 043
3 801
4 205
Other
businesses*
1 514
246
(296)
201 629
94 267
118 840
20 476
12 018
29 950
(59 193)
(27 035)
(35 537)
Intercompany
turnover
142 436
67 232
83 303
* Includes share-based payment expenses related to the
Sasol Inzalo share transaction and exchange gains on forward
exchange contracts.
Overview
Chief Executive Officer, David E. Constable says:
"We are pleased to announce record interim earnings, which
continues our strong track record of delivering superior
shareholder returns. We have maintained a resilient production
performance despite challenges. The macro-economic trends, the
global need for energy diversification and energy security are
all supportive of our gas-to-liquids value proposition. Our
growth strategy continues to serve us well and we are positive
about the earnings outlook for the remainder of 2012. Our
focus on cost containment and capital project execution
continues as part of our strategy of sustainable value
creation across our businesses in South Africa and abroad."
Earnings attributable to shareholders for the six months ended
31 December 2011 increased by 83% to R13,9 billion from R7,6
billion in the prior year*, while headline earnings per share
and earnings per share increased by 81% to R23,50 and by 82%
to R23,05, respectively, over the same period.
Operating profit of R20,5 billion increased by 70% compared
with the prior year. This increase was mainly due to solid
operational performance in our businesses, coupled with a
strong improvement in the average crude oil (average dated
Brent was US$111,41/barrel at 31 December 2011 compared with
US$81,68/barrel at 31 December 2010) and product prices as
well as a 7% weaker rand/US dollar exchange rate (R7,63/US$ at
31 December 2011 compared with R7,11/US$ at 31 December 2010).
In addition, the results have been positively impacted by
exchange gains on forward exchange contracts. Overall, group
production volumes were down compared to the prior comparable
period. In South Africa, industrial strike action and plant
incidents negatively impacted volumes. Production utilisation
in other global operations was purposely reduced to match
lower demand and optimise margins.
Chief Financial Officer, Christine Ramon says:
"A solid group operational performance as well as an overall
favourable macroeconomic environment contributed to an
excellent set of financial results and strong cash flow
generation. In addition, proactive management actions resulted
in significant margin improvement. We continue to focus on
containing normalised cash fixed costs within inflation,
despite a challenging South African inflationary environment
and the negative impact of a weaker rand on costs for the half
year. Our balance sheet remains strong and continues to
provide a buffer against a volatile global economic
environment. We remain well-positioned to fund our carefully
selected, exciting growth opportunities, whilst remaining
committed to consistently delivering attractive returns to our
shareholders."
Cash fixed costs increased in real terms by 3% on a normalised
basis, excluding once-off and growth costs, mainly as a result
of increased energy imports and higher plant maintenance at
our Secunda operations. Growth costs relate primarily to our
Canadian operations.
The operating profit in the current period was positively
impacted by non-recurring items totalling R74 million (31
December 2010:R800 million negative impact). These items
relate primarily to the profit of R120 million on the sale of
our Sasol Nitro Phalaborwa operations and certain of the
upstream fertiliser businesses. Our overall share-based
payment expense of R721 million decreased from R1 196 million
in the prior year, as a result of a decrease of R201 million
Sasol Inzalo BEE share-based payment expense and the once-off
Ixia Coal BEE transaction expense of R565 million, partially
offset by an increase in the Sasol share incentive schemes
expense related to the increase in the Sasol share price.
The decrease in the effective tax rate from 33,7% to 29,3%
resulted primarily from the reduction in non-deductible share-
based payment expenses and competition administrative
penalties, compared with the prior year.
Cash flow generated by operating activities was R22,7 billion
compared with R15,1 billion in the prior year. This was mainly
due to increased operating profits, partly offset by increased
working capital, both as a result of price and volume effects.
Capital investments for the period was R14,5 billion.
* All comparisons refer to the prior year comparable period
unless otherwise stated.
Pursuing sustainable value creation
To ensure that we continue to build on our successes into the
future, we are focusing on optimising our current businesses
and on maximising our growth opportunities. To achieve these
objectives, we will focus on further globalisation through
geographic and people diversification, as well as expanding
our chemicals and energy footprint.
Opportunities abound in the upstream, downstream chemical and
new energy arenas. All our businesses and functions will
continue to operate sustainably, underpinned by sound
governance. Continuing to deliver sustainable value through
our operational excellence and functional excellence
initiatives in our existing asset base, underpins the
achievement of our objectives. Our growth will further be
supported by our capital excellence programme, allowing us to
achieve world-class capital project execution. These
initiatives will also continue to support our commitment to
energy efficiency and our environmental projects. In addition,
we will seek to become more globally-orientated and customer-
focused, through our sales and marketing excellence initiative
across the group. Safety remains an imperative and we will
continue striving for zero harm production.
During the period, we have paid R13,5 billion direct and
indirect taxes to the South African government. Sasol remains
one of the largest corporate tax payers in South Africa,
contributing significantly to the South African economy.
During the period, we continued to make progress in pursuing
sustainable initiatives to help reduce our carbon footprint:
*Sasol New Energy continued to progress various alternative
energy studies and projects to various stages of completion.
These studies included the generation of electricity from
natural gas in both South Africa and Mozambique, solar based
renewable energy projects and hydro electricity generation.
Our in-house knowledge in respect of carbon capture and
storage as well as underground coal gasification was further
advanced during the period.
*We continued to invest in the European CO2 Technology Centre
Mongstad, in Norway. The construction of a carbon capture
facility is on track, with the start up of various components
of the plant in progress.
*Sasol New Energy has engaged with BrightSource Energy Inc.,
to advance concentrated solar power technology in South
Africa. This project has the potential to expand our new
energy portfolio and contribute to the country's transition to
a lower-carbon economy.
*The recordable case rate (RCR) for employees and service
providers, including injuries and illnesses, of 0,43 at 31
December 2011 is comparable to the RCR rate of 0,42 at 30 June
2011. Safety improvement remains a strategic imperative for
sustainable operations.
Steady progress on projects
We are steadily advancing our growth ambitions, supported by
our strong balance sheet:
* The advancement and acquisition of natural gas assets in
support of leveraging our gas-to-liquids (GTL) technology
continued to progress over the period:
o In respect of our Canadian shale gas assets, activities
on the Farrell Creek asset continue with a multi-rig
drilling programme designed to add production in the
core areas and appraising the less calibrated areas.
Continued and significant efforts are focused on
driving down drilling and completion costs and
optimising the fracking techniques to maximise
productivity and increase the overall economic
robustness of the project, notably in a low gas price
environment. Production from the Cypress A area
continues from the existing six wells with a single
additional well planned for the 2012 calendar year for
retention of acreage.
o During the period, Sasol Petroleum International's
(SPI) onshore appraisal campaign of the Inhassoro oil
discovery in Mozambique focused on the production test
of the I-9Z horizontal well, which is expected to
commence during the first half of the 2012 calendar
year.
o In October 2011, the expansion of the onshore gas
production facilities in Pande and Temane, Mozambique,
to increase the current annual production capacity from
120 million gigajoules to 183 million gigajoules,
achieved beneficial operation.
o We have completed the technical study for shale gas in
the Karoo Basin and based on our technical assessment,
we concluded that the subsurface risk in this part of
the basin is too high for the partnership. Following
the expiry of our technical co-operation permit in
November 2011, we decided to relinquish the area.
o Together with our partner Origin, we made entry into a
coal bed methane venture in Botswana and at present are
planning for field studies and activities in the latter
part of the 2012 calendar year.
o We have also been successful in securing a technical
co-operation permit offshore Durban, South Africa, and
have started our evaluation of the area.
* The feasibility study to determine the technical and
commercial viability of an integrated GTL and chemicals
facility in Louisiana in the United States has commenced and
is expected to be concluded in the 2013 calendar year.
* During the period, we also commenced with a feasibility
study to assess the technical and commercial viability of a
world-scale ethane cracker and associated ethylene
derivatives in Louisiana. The feasibility study is also
expected to be concluded in the 2013 calendar year.
* The feasibility study to determine the technical and
commercial viability of a GTL plant in western Canada is
progressing and is expected to be completed towards the
second half of the 2012 calendar year.
* The front end engineering and design (FEED) for the
Uzbekistan GTL plant commenced in October 2011, following
the signing of the investment agreement with our partners,
Uzbekneftegaz and Petronas. FEED is expected to be completed
in the 2013 calendar year.
* The Synfuels growth programme is progressing well with the
gas turbines, 10th Sasol advanced synthol reactor and 16th
oxygen train delivering to expectations, and construction on
the gas heated heat exchange reformers project continues. In
related projects, the first of four new gasifiers was
commissioned successfully, with commissioning of the 17th
reformer expected in the second quarter of the 2012 calendar
year.
* During the period, Sasol New Energy began construction of a
140 megawatt electricity generation plant in Sasolburg,
South Africa. The plant will utilise natural gas as its
feedstock. It is anticipated that the facility will be on
line and reach full capacity during the first half of the
2013 calendar year.
* Progress has been made during the period on extending our
reserves at Sasol Mining. The construction of a mine which
will support the long-term coal export market continues to
progress, with an anticipated completion date towards the
first half of the 2013 calendar year. The construction of a
further two collieries, at a total estimated cost of R9,8
billion, is expected to be completed in 2015 and 2016,
respectively.
* The Gauteng Network Gas Pipeline expansion project, at an
estimated cost of R1,6 billion, advanced during the period
and is expected to be completed during the second half of
the 2012 calendar year.
* The Alrode Depot expansion project is nearing completion and
is expected to be fully operational by the end of the third
quarter of the 2012 calendar year.
* Work on the Clean Fuels 2 project for Sasol Synfuels and
Natref is progressing well and it is expected that the
feasibility studies will be completed by the end of the 2012
calendar year.
* Construction on the wax production facility in Sasolburg,
South Africa, continues to progress according to plan.
* Our ethylene purification unit project in Sasolburg, which
will yield additional ethylene to support our polymer plants
to run continuously is expected to be in operation during
the second half of the 2012 calendar year, at an estimated
cost of R1,8 billion.
Climate change initiatives and policies
Towards the end of 2011, Sasol worked with the South African
government and other stakeholders as part of "Team South
Africa" to ensure that the 17th meeting of the Conference of
the Parties (COP 17) in Durban was successfully hosted. Sasol
was well-represented at COP 17 and we were able to build both
awareness of the issues that we face in responding to climate
change challenges and to showcase the progress that South
Africa has made in moving towards a lower carbon and climate
resilient economy. In particular, we were able to highlight:
* the role of gas as a bridge to a lower carbon economy,
* our progress with respect to improved energy efficiency, and
* our work in the area of carbon capture and storage both in
South Africa and through our share in the Technology Centre
Mongstad, in Norway.
On 22 February 2012, the South African Finance Minister,
Minister Gordhan, announced that a revised policy paper on a
carbon tax will be published this year for a second round of
public comment and consultation. Sasol is studying the
proposed tax, as detailed in the full budget review document,
and will actively consult with government once the revised
policy paper has been published.
Sasol will continue to engage the South African government and
other stakeholders on climate change-related policies and
initiatives, to find workable and sustainable solutions to the
climate change challenge, while remaining mindful of energy
security requirements, growth imperatives, and socio-economic
impacts associated with a transition to a lower-carbon
economy.
Solid performance from our operations
South African energy cluster
Sasol Mining - higher US dollar coal prices continue
Operating profit of R1 002 million was 42% higher than the
prior year after taking into account the once-off Ixia Coal
transaction share-based payment expense of R565 million
recognised in the prior year. Production volumes increased by
approximately 2%, despite industrial action and adverse
geological conditions. The improved operating profit was
supported by higher US dollar export coal prices and sales
prices to Sasol Synfuels, together with the weaker rand/US
dollar exchange rate.
Sasol Gas - improved sales prices
Operating profit increased by 14% to R1 461 million compared
with the prior year mainly as a result of higher gas prices
and marginally higher sales volumes, despite the negative
impact of exchange rates on gas purchases and the costs
associated with the start-up in October 2010 of a new
compressor station in Komatipoort, South Africa.
Sasol Synfuels - higher prices, lower production volumes
Sasol Synfuels' operating profit increased by 84% to R9 909
million compared with the prior year primarily due to higher
average rand oil prices resulting in favourable product
prices. Production volumes were 1,3% lower than the prior year
due to the industrial action during the period as well as
plant instabilities. Operating profits were also negatively
impacted by higher feedstock and energy costs as well as
increased maintenance costs.
Sasol Oil - higher wholesale margins
Operating profit increased by 65% to R1 099 million compared
with the prior year, despite lower production and sales
volumes resulting from an extended planned shutdown at the
Natref refinery and industrial action during the period.
Higher wholesale margins and the impact of the weaker rand/US
dollar exchange rate underpinned the improved operating
profit.
International energy cluster
Sasol Synfuels International (SSI) - strong performance from
ORYX
SSI's operating profit increased by 92% to R1 033 million
compared with the prior year. This was mainly due to higher
crude oil and product prices coupled with increased sales
volumes, which were partly negated by exchange rate variances.
The ORYX GTL plant in Qatar delivered a strong performance,
achieving an average daily production of 28 700 barrels per
day, at an average utilisation rate of 89%.
Sasol Petroleum International (SPI) - improved volumes from
Gabon and Canada
Operating profit decreased by 64% to R121 million compared
with the prior year. Higher oil prices and increased sales
volumes from our Gabon and Canada operations contributed
positively to the operating profit; however, the favourable
impact was offset by negative foreign exchange translation
effects from foreign operations as well as depreciation of our
recently acquired Canadian assets. While, exploration
expenditure in Mozambique and Gabon was lower during the
period, expenditure on growth initiatives increased.
Chemical cluster
Sasol Polymers - Arya Sasol Polymer Company (ASPC) ramps up to
design capacity
Sasol Polymers' operating profit decreased by 5% to R546
million compared with the prior year. Operating profit was
negatively impacted by a 6% decrease in production volumes
from our local operations, which was partially compensated by
an increase from our international operations. Our
international operations contributed R937 million to operating
profit. ASPC ramped up to design capacity during the period,
with an average year to date capacity utilisation rate of 81%.
International polymer prices contributed to the decrease in
operating profit, but their effect was partially offset by the
weaker rand/US dollar exchange rate. Our local operations
experienced a significant margin squeeze due to increased
feedstock costs as a result of the increase in average crude
oil prices.
Sasol Solvents - higher product prices
Operating profit increased by 153% to R1 115 million compared
with the prior year. This is mainly due to higher prevailing
product prices, despite lower sales volumes. The increased
operating profit was assisted by a weaker rand/US dollar
exchange rate, which negated deteriorating market conditions
over the period. Production volumes reflected a decline
compared with the prior year as a result of planned and
unplanned outages at production facilities, as well as
production cut-backs due to market constraints.
Sasol Olefins & Surfactants (Sasol O&S) - improved margins
Operating profit increased by 4% to R1 660 million compared
with the prior year, mainly as a result of strong gross
margins, in particular during the first half of the period.
There were some reductions in volumes during the latter part
of the period as a result of seasonal fluctuations. The
increase in operating profit was positively impacted by
foreign currency translation effects.
Other chemical businesses - strong prices in Sasol Nitro
offsets lower volumes
Operating profit in our other chemical businesses increased by
21% to R1 018 million compared with the prior year. Sales
and production volumes in the wax markets declined on the back
of lower demand in the United States and European markets and
production difficulties in South Africa.
Despite lower fertiliser sales volumes, due to exiting the
retail fertiliser business, higher margins were achieved in
the Sasol Nitro business. The improvement in operating profits
was supported by the weaker rand/US dollar exchange rate.
Operating profit includes a once-off profit of R120 million
resulting from the sale of Sasol Nitro's Phalaborwa operations
and certain of its upstream fertiliser businesses.
Competition law compliance
We are continuously evaluating and enhancing our compliance
programmes and controls in general, and our competition law
compliance programme and controls in particular. As a
consequence of these compliance programmes and controls,
including monitoring and review activities, we have also
adopted appropriate remedial and/or mitigating steps, where
necessary or advisable, lodged leniency applications and made
disclosures on material findings as and when appropriate. As
reported previously, these compliance activities have already
revealed and may still reveal competition law contraventions
or potential contraventions in respect of which we have taken,
or will take, appropriate remedial and/or mitigating steps
including lodging leniency applications.
The South African Competition Commission (the Commission) is
conducting investigations into the South African piped gas,
petroleum, coal mining, fertilisers and polymer industries. As
part of its investigation into the polymer industry, the
Commission has contended that the prices at which Sasol
Polymers supplies propylene and polypropylene are excessive.
Sasol Polymers does not agree with the Commission's position
in this regard and is contesting the Commission's allegations.
The Competition Tribunal hearing is scheduled for July 2012.
We continue to interact and co-operate with the Commission in
respect of the subject matter of current leniency applications
brought by Sasol, conditional leniency agreements concluded
with the Commission, 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.
Due to the uncertainty related to these matters, it is
currently not possible to estimate contingent liabilities, if
any, and accordingly no provision has been recognised at 31
December 2011.
Balance sheet remains strong
Gearing at 31 December 2011 of 7,2% (30 June 2011: 1,3%)
remained low as a result of improved cash flow generation.
This low level of gearing is expected to be maintained in the
short-term, but is likely to return to within our targeted
range of 20% to 40% in the medium-term, as our large capital
intensive growth programme and gas acquisition strategy gains
momentum. At the annual general meeting of 25 November 2011,
shareholders renewed the authority to the Sasol directors to
buy back up to 10% of Sasol's issued share capital (excluding
the preferred ordinary and Sasol BEE ordinary shares) for a
further 12 months. No shares were repurchased during the
current period.
Profit outlook* - well positioned to deliver increased
earnings for the 2012 financial year
Crude oil prices have been increasing steadily supported by
recent developments in supply and geopolitics in the Middle
East/North Africa. The rand/US dollar exchange rate remains
the single biggest external factor impacting our
profitability.
At Synfuels we are on track to produce between 7,0 to 7,2
million tons of product for the financial year 2012. In our
international operations we expect ORYX GTL to achieve a full-
year utilisation rate of between 80% and 90% of nameplate
capacity and we remain confident that full-year production at
ASPC will be above 80% of nameplate capacity. Despite the
production delays experienced at Farrell Creek, we expect
volume growth from this shale gas venture. Although demand and
prices for chemicals have softened recently, we still maintain
solid operating margins. Our South African Polymers operations
are experiencing margin pressure, which is expected to
continue.
In view of recent developments regarding trade restrictions
and possible oil sanctions against Iran, Sasol Oil is
diversifying its crude oil sourcing, to mitigate risks
associated with oil supply disruptions from the Middle East.
In addition, we remain committed to containing normalised cash
fixed costs within inflation.
Our resilient operations will enable us to benefit from the
favourable rand commodity prices and therefore we are well-
positioned to deliver increased earnings for the 2012
financial year.
The macro economic conditions continue to be volatile,
impacting our assumptions in respect of improved crude oil and
product prices, weaker refining margins as well as the weaker
rand/US dollar exchange rate. Our focus remains on factors
within our control: volume growth, margin improvement and cost
containment within inflation. The current volatility and
uncertainty of global markets and geopolitical activities
makes it difficult to be more precise in this outlook
statement.
Taking into account the ongoing strength of our financial
position and current capital investment plans, as well as the
increased earnings, management has recommended and the board
has approved the interim dividend. This approach remains in
line with our progressive dividend policy and our commitment
to consistently return value to shareholders.
The proposed amendments to the tax treatment of dividends in
South Africa will become effective on 1 April 2012. The
group's final dividend for year ended 30 June 2012 and
dividends declared thereafter will be affected by a dividend
withholding tax. As a result of the withdrawal of secondary
tax on companies (STC) and the introduction of a dividend
withholding tax, the board intends to pass on the savings in
STC to shareholders by increasing the dividend payment for the
current financial year. We will continue to assess future
dividends taking into account our progressive dividend policy.
* In accordance with standard practice, it is noted that this
information has not been reviewed nor reported on by the
company's auditors.
Subsequent events
On 10 January 2012, Sasol Germany GmbH announced that it had
reached agreement to sell its production site in Witten,
Germany. All conditions precedent were met on 29 February
2012.
Activities to further the potential disposal of our investment
in ASPC are progressing. Further announcements will be made
once sufficient certainty is achieved.
Appointment of director
On 29 November 2011, Mr MZ Mkhize was appointed as an
independent non-executive director of Sasol Limited.
Declaration of cash dividend number 65
An interim cash dividend of South African R5,70 per ordinary
share (2010: R3,10 per share) has been declared for the six
months ended 31 December 2011. The interim cash dividend is
payable on all ordinary shares (including the Sasol BEE
ordinary shares), excluding the Sasol preferred ordinary
shares.
The salient dates for holders of ordinary shares are:
Declaration date
Monday, 12 March 2012
Last day for trading to
qualify for and participate in
the interim dividend (cum
dividend)
Wednesday, 4 April 2012
Trading ex dividend commences
Thursday, 5 April 2012
Record date
Friday, 13 April 2012
Dividend payment date
Monday, 16 April 2012
Holders of American Depositary Receipts1
Ex dividend on New York Stock
Exchange (NYSE)
Wednesday, 11 April 2012
Record date
Friday, 13 April 2012
Approximate date for currency
conversion
Tuesday, 17 April 2012
Approximate dividend payment date
Thursday, 24 April 2012
1 All dates are approximate as the NYSE sets the record date
after receipt of the dividend declaration.
On Monday, 16 April 2012, 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, 16
April 2012.
Share certificates may not be dematerialised or re-
materialised between Wednesday, 4 April 2012 and Friday, 13
April 2012, both days inclusive.
On behalf of the board
Hixonia Nyasulu
Chairman
David E. Constable
Chief Executive Officer
Christine Ramon
Chief Financial Officer
Sasol Limited
9 March 2012
The interim financial statements are presented on a condensed
consolidated basis.
Statement of financial position
at
31 Dec 11
Reviewed
Rm
31 Dec 10
Reviewed
Rm
30 Jun 11
Audited
Rm
Assets
Property, plant and equipment
86 566
74 173
79 245
Assets under construction
35 437
23 038
29 752
Goodwill
792
701
747
Other intangible assets
1 104
1 101
1 265
Investments in associates
3 718
2 978
3 071
Post-retirement benefit assets
902
768
792
Deferred tax assets
1 241
1 003
1 101
Other long-term assets
2 997
2 042
2 218
Non-current assets
132 757
105 804
118 191
Assets held for sale
343
121
54
Inventories
21 712
16 337
18 512
Trade and other receivables
23 975
20 487
23 174
Short-term financial assets
408
40
22
Cash restricted for use
7 817
2 489
3 303
Cash
8 857
13 330
14 716
Current assets
63 112
52 804
59 781
Total assets
195 869
158 608
177 972
Equity and liabilities
Shareholders' equity
120 503
95 876
107 649
Non-controlling interest
2 790
2 550
2 691
Total equity
123 293
98 426
110 340
Long-term debt
14 162
14 319
14 356
Long-term financial liabilities
39
59
103
Long-term provisions
9 405
7 588
8 233
Post-retirement benefit
obligations
5 144
4 529
4 896
Long-term deferred income
404
360
498
Deferred tax liabilities
13 834
11 189
12 272
Non-current liabilities
42 988
38 044
40 358
Liabilities in disposal groups
held for sale
36
4
-
Short-term debt
3 097
1 239
1 602
Short-term financial liabilities
127
289
136
Other current liabilities
26 044
20 393
25 327
Bank overdraft
284
213
209
Current liabilities
29 588
22 138
27 274
Total equity and liabilities
195 869
158 608
177 972
Income statement
for the period ended
half year
31 Dec 11
Reviewed
Rm
half year
31 Dec 10
Reviewed
Rm
full year
30 Jun 11
Audited
Rm
Turnover
83 303
67 232
142 436
Cost of sales and services
rendered
(53 936)
(42 901)
(90 467)
Gross profit
29 367
24 331
51 969
Other operating income
613
292
1 088
Marketing and distribution
expenditure
(3 589)
(3 350)
(6 796)
Administrative expenditure
(5 331)
(5 612)
(9 887)
Other operating expenditure
(584)
(3 643)
(6 424)
Competition related fines
-
(112)
(112)
Effect of crude oil hedges
50
(25)
(118)
Share-based payment expenses
(721)
(1 196)
(2 071)
Effect of remeasurement
items
(303)
(177)
(426)
Translation gains/(losses)
1 642
(919)
(1 016)
Other expenditure
(1 252)
(1 214)
(2 681)
Operating profit
20 476
12 018
29 950
Finance income
428
565
991
Share of profits of
associates (net of tax)
269
137
292
Finance expenses
(972)
(983)
(1 817)
Profit before tax
20 201
11 737
29 416
Taxation
(5 927)
(3 953)
(9 196)
Profit for the period
14 274
7 784
20 220
Attributable to
Owners of Sasol Limited
13 894
7 601
19 794
Non-controlling interest in
subsidiaries
380
183
426
14 274
7 784
20 220
Earnings per share
Rand
Rand
Rand
Basic earnings per share
23,05
12,68
32,97
Diluted earnings per share1
22,91
12,69
32,85
1 Diluted earnings per share are calculated taking the Sasol
Share Incentive Scheme and Sasol Inzalo share transaction into
account.
Statement of cash flows
for the period ended
half year
31 Dec 11
Reviewed
Rm
half year
31 Dec 10
Reviewed
Rm
full year
30 Jun 11
Audited
Rm
Cash receipts from customers
83 633
66 651
138 955
Cash paid to suppliers and
employees
(60 975)
(51 558)
(100
316)
Cash generated by operating
activities
22 658
15 093
38 639
Finance income received
639
719
1 380
Finance expenses paid
(343)
(778)
(898)
Tax paid
(5 163)
(2 238)
(6 691)
Dividends paid
(6 090)
(4 713)
(6 614)
Cash retained from operating
activities
11 701
8 083
25 816
Additions to non-current
assets
(14 540)
(9 217)
(20 665)
Acquisition of interest in
joint ventures
(28)
-
(3 823)
Disposal of businesses
33
-
22
Additional investments in
associate
(80)
-
(91)
Other net cash flows from
investing activities
(36)
76
92
Cash utilised in investing
activities
(14 651)
(9 141)
(24 465)
Share capital issued
217
248
430
Contributions from non-
controlling shareholders in
subsidiaries
-
27
27
Dividends paid to non-
controlling shareholders in
subsidiaries
(288)
(313)
(419)
(Decrease)/increase in long-
term debt
(913)
672
545
Increase/(decrease) in short-
term debt
1 503
(215)
(295)
Cash effect of financing
activities
519
419
288
Translation effects on cash
and cash equivalents of
foreign operations
1 011
(347)
(421)
(Decrease)/increase in cash
and cash equivalents
(1 420)
(986)
1 218
Cash and cash equivalents at
beginning of period
17 810
16 592
16 592
Cash and cash equivalents at
end of period
16 390
15 606
17 810
Statement of comprehensive income
for the period ended
half year
31 Dec 11
Reviewed
Rm
half year
31 Dec 10
Reviewed
Rm
full year
30 Jun 11
Audited
Rm
Profit for the period
14 274
7 784
20 220
Other comprehensive income
Effect of translation of
foreign operations
4 575
(2 813)
(2 031)
Effect of cash flow hedges
38
(41)
111
Investments available-for-sale
(4)
-
-
Tax on other comprehensive
income
(9)
19
(23)
Other comprehensive income for
the period, net of tax
4 600
(2 835)
(1 943)
Total comprehensive income for
the period
18 874
4 949
18 277
Attributable to
Owners of Sasol Limited
18 487
4 768
17 849
Non-controlling interests in
subsidiaries
387
181
428
18 874
4 949
18 277
Statement of changes in equity
for the period ended
half year
31 Dec 11
Reviewed
Rm
half year
31 Dec 10
Reviewed
Rm
full year
30 Jun 11
Audited
Rm
Opening balance
110 340
97 242
97 242
Shares issued during period
217
248
430
Share-based payment expenses
240
1 017
1 428
Disposal of businesses
-
(4)
(4)
Total comprehensive income for
the period
18 874
4 949
18 277
Dividends paid
(6 090)
(4 713)
(6 614)
Dividends paid to non-
controlling shareholders in
subsidiaries
(288)
(313)
(419)
Closing balance
123 293
98 426
110 340
Comprising
Share capital
27 876
27 477
27 659
Share repurchase programme
(2 641)
(2 641)
(2 641)
Sasol Inzalo share transaction
(22 054)
(22 054)
(22 054)
Retained earnings
106 394
88 298
98 590
Share-based payment reserve
8 264
7 613
8 024
Foreign currency translation
reserve
2 674
(2 676)
(1 895)
Investment fair value reserve
2
5
5
Cash flow hedge accounting
reserve
(12)
(146)
(39)
Shareholders' equity
120 503
95 876
107 649
Non-controlling interest in
subsidiaries
2 790
2 550
2 691
Total equity
123 293
98 426
110 340
Salient features
for the period ended
half
year
31 Dec
11
half year
31 Dec 10
full year
30 Jun 11
Selected ratios
Return on equity
%
25,7*
16,7*
19,6
Return on total
assets
%
23,9*
16,6*
18,7
Operating margin
%
24,6
17,9
21,0
Finance expense
cover
times
61,7
16,3
34,8
Dividend cover
times
4,1
4,2
2,5
* Annualised
Share statistics
Total shares in
issue
million
672,5
669,7
671,0
Treasury shares
(share repurchase
programme)
million
8,8
8,8
8,8
Weighted average
number of shares
million
602,7
599,6
600,4
Diluted weighted
average number of
shares
million
615,0
614,4
614,5
Share price
(closing)
Rand
385,50
346,28
355,98
Market
capitalization
- Total Sasol shares
Rm
259 247
231 904
238 863
- Sasol BEE ordinary
shares
Rm
710
-
742
Net asset value per
share
Rand
200,64
160,38
179,68
Dividend per share
Rand
5,70
3,10
13,00
- interim
Rand
5,70
3,10
3,10
- final
Rand
-
-
9,90
Other financial
information
Total debt
(including bank
overdraft)
- interest bearing
Rm
16 895
15 142
15 522
- non-interest
bearing
Rm
648
629
645
Capital commitments
Rm
49 692
43 662
48 321
- authorised and
contracted
Rm
46 973
31 840
41 367
- authorised, not
yet contracted
Rm
33 892
34 440
33 458
- less expenditure
to date
Rm
(31 173
)
(22 618)
(26 504)
Guarantees and
contingent
liabilities
- total amount
Rm
39 073
17 371
30 991
- liability included
in the statement of
financial position
Rm
11 401
10 286
10 734
Significant items in
operating profit
- employee costs
Rm
9 182
8 676
18 756
- depreciation and
amortisation of non-
current assets
Rm
4 393
3 537
7 400
- share-based
payment expenses
Rm
721
1 196
2 071
Sasol share
incentive schemes
Rm
490
199
676
Sasol Inzalo share
transaction
Rm
231
432
830
Ixia Coal
transaction
Rm
-
565
565
Effective tax rate1
%
29,3
33,7
31,3
Number of employees
number
34 626
33 550
33 708
Average crude oil
price - dated Brent
US$/barre
l
111,41
81,68
96,48
Average rand/US$
exchange rate
1US$ =
Rand
7,63
7,11
7,01
Closing rand/US$
exchange rate
1US$ =
Rand
8,09
6,62
6,77
1 Decrease in effective tax rate as a result of the absence of
competition related administrative penalties and lower share-
based payment expenses which are not deductible for tax.
Reconciliation of headline
earnings
Rm
Rm
Rm
Profit for the period
attributable to owners of
Sasol Limited
13 894
7 601
19 794
Effect of remeasurement items
303
177
426
Impairment of assets
208
161
171
Reversal of impairment
(23)
(31)
(516)
Profit on disposal of business
(120)
(3)
(9)
Profit on disposal of
associate
(6)
(6)
(6)
Profit on disposal of assets
(4)
(10)
(14)
Scrapping of non-current
assets
240
66
359
Write off of unsuccessful
exploration wells
8
-
441
Tax effects and non-
controlling interests
(36)
(3)
106
Headline earnings
14 161
7 775
20 326
Remeasurement items per
above
Mining
54
(1)
3
Gas
-
7
6
Synfuels
108
34
197
Oil
4
(7)
17
Synfuels International
33
133
126
Petroleum International
9
1
442
Polymers
45
10
46
Solvents
61
32
63
Olefins & Surfactants
102
(23)
(500)
Other chemical
businesses
(119)
(14)
(11)
Nitro
(113)
(8)
(1)
Wax
(1)
(6)
(3)
Infrachem
5
-
(8)
Merisol
(10)
-
1
Other businesses
6
5
37
Remeasurement items
303
177
426
Headline earnings per
share
Rand
23,50
12,97
33,85
Diluted headline
earnings per share
Rand
23,34
12,98
33,72
The reader is referred to the definitions contained in the 2011
Sasol Limited annual financial statements.
Basis of preparation and accounting policies
The condensed consolidated interim financial results for the
six months ended 31 December 2011 have been prepared in
accordance with International Accounting Standard 34 Interim
Financial Reporting, the AC500 Standards as issued by the
Accounting Practices Board or its successor and the South
African Companies Act, 2008, as amended.
The accounting policies applied in the presentation of the
interim financial results are consistent with those applied
for the year ended 30 June 2011 and are in terms of
International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board, except as
follows:
Sasol Limited has early adopted the following standards, which
did not have a significant impact on the financial results:
* IFRS 7 (Amendments), Financial Instruments: Disclosures -
Offsetting Financial Assets and Financial Liabilities.
* IAS 32 (Amendments), Financial Instruments: Presentation -
Offsetting Financial Assets and Financial Liabilities.
* IFRIC 20, Stripping Costs in the Production Phase of a
Surface Mine.
These condensed consolidated interim financial results 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 and
available-for-sale financial assets, are stated at fair value.
The condensed consolidated interim financial results are
presented in South African rand, which is Sasol Limited's
functional and presentation currency.
Christine Ramon CA(SA), Chief Financial Officer, is
responsible for this set of financial results and has
supervised the preparation thereof in conjunction with the
Executive: Group Finance, Paul Victor CA(SA) and the General
Manager: Group Statutory Reporting, Samantha Barnfather
CA(SA).
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 changes in contingent liabilities since 30 June
2011
Sasol Synfuels was in legal proceedings with regard to the
operation of a plant in Secunda. Ashcor claimed damages of
R313 million relating to their inability to develop their
business and a projected loss of future cash flows. On 28
September 2011, the Supreme Court of Appeal of South Africa
dismissed the appeal by Ashcor. These proceedings have been
decided in favour of Sasol.
As a result of the fine imposed on Sasol Wax GmbH in October
2008 by the European Commission, on 23 September 2011, Sasol
Wax GmbH was served with a law suit in The Netherlands by a
company to which potential claims for compensation of damages
have been assigned to by eight customers. On 30 September
2011, another law suit has been lodged with the London High
Court by 30 plaintiffs against Sasol Wax GmbH, Sasol Wax
International AG and Sasol Holding in Germany GmbH. The law
suits do not demand a specific amount for payment. The
plaintiffs are trying to specify the amount of alleged
damages. The result of these proceedings cannot be determined
at present.
Independent review by the auditors
The condensed consolidated interim financial results for the
six months ended 31 December 2011 were reviewed by KPMG Inc.
The individual auditor assigned to perform the review is Mr CH
Basson. Their unmodified review report is available for
inspection at the registered office of the company.
Registered office:
Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196
PO Box 5486, Johannesburg 2000, South Africa
Share registrars:
Computershare Investor Services (Pty) Ltd,
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107, South Africa,
Tel: +27 11 370-7700 Fax: +27 11 370-5271/2
Sponsor: Deutsche Securities (SA) (Pty) Ltd
Directors (non-executive): Mrs TH Nyasulu (Chairman), Mr C
Beggs*, Mr HG Dijkgraaf (Dutch)*, Dr MSV Gantsho*, Ms IN
Mkhize*, Mr MZ Mkhize*, Mr MJN Njeke*, Prof JE Schrempp
(German)^
(executive): Mr DE Constable (Chief Executive Officer)
(Canadian), Mrs KC Ramon (Chief Financial Officer), Ms VN
Fakude
*Independent ^Lead independent director
Company secretary: Mr VD Kahla
Company registration number: 1979/003231/06, incorporated in
the Republic of South Africa
JSE
NYSE
Sasol Ordinary shares:
Share code:
SOL
SSL
ISIN:
ZAE000006896
US8038663006
Sasol BEE Ordinary
shares:
Share code:
SOLBE1
ISIN:
ZAE000151817
American depositary 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, USA
Forward-looking statements: Sasol may, in this document, make
certain statements that are not historical facts and relate to
analyses and other information which are based on forecasts of
future results and estimates of amounts not yet determinable.
These statements may also relate to our future prospects,
developments and business strategies. Examples of such
forward-looking statements include, but are not limited to,
statements regarding exchange rate fluctuations, volume
growth, increases in market share, total shareholder return
and cost reductions. Words such as "believe", "anticipate",
"expect", "intend", "seek", "will", "plan", "could", "may",
"endeavour" and "project" and similar expressions are intended
to identify such forward-looking statements, but are not the
exclusive means of identifying such statements. By their very
nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and there are risks
that the predictions, forecasts, projections and other
forward-looking statements will not be achieved. If one or
more of these risks materialise, or should underlying
assumptions prove incorrect, our actual results may differ
materially from those anticipated. You should understand that
a number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements. These factors are discussed more fully in our most
recent annual report under the Securities Exchange Act of 1934
on Form 20-F filed on 7 October 2011 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".
e-mail: investor.relations@sasol.com
Comprehensive additional information is available on our
website: 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: March 12, 2012 By: /s/ V D Kahla
Name: Vuyo Dominic Kahla
Title: Company Secretary