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 June 28, 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 Chief Financial Officer Update for the nine
months ended 31 March 2012
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")
28 June 2012
SASOL CHIEF FINANCIAL OFFICER UPDATE FOR THE NINE MONTHS ENDED
31 MARCH 2012
Highlights for the period
Sasol Synfuels delivers a strong third quarter performance
and is on track to achieve production guidance of
approximately 7,1mt for the full financial year.
* ORYX GTL achieves a new production record.
* Sasol Mining meets the Mining Charter BEE ownership
requirements, ahead of the 2014 deadline.
Dear Sasol stakeholder,
In the first nine months of the 2012 financial year, oil
prices rose while chemical prices remained largely flat amid
continuing global economic uncertainty. In our third quarter,
the group benefited from improvements in the operational
performance of its main businesses, as well as a weaker
rand/dollar exchange rate. Sasol Synfuels recovered well from
the plant incidents that took place during the first half of
the financial year to deliver much improved third quarter
production volumes. Our Canadian shale gas assets achieved
improved daily production rates while ORYX GTL and Arya Sasol
Polymer Company exceeded the previous year's performance.
Chemical businesses were under pressure due to high feedstock
prices as well as softer demand and product prices.
We are progressing in the development of our upstream assets.
We inaugurated our new Thubelisha mine shaft, a first
milestone in our mining replacement project. Our gas engine
power plants are progressing well with the South African
project remaining on track to ramp up our additional self
generated electricity to 60% of our requirements by the 2013
calendar year.
The high level specifications for Clean Fuels 2 were gazetted
in South Africa in June 2012. We continue to engage with the
government on cost-recovery mechanisms and detailed
specifications.
We remain confident that, based on the production guidance and
macro-economic indicators, we will deliver solid operational
results and increased earnings for the 2012 financial year
compared to the attributable earnings of R19,8 billion in the
2011 financial year.
Overall macro-economics support group profitability
The global economic recovery remained unbalanced and fragile
in the nine months to 31 March 2012. US economic growth
proceeded at a modest pace, with unemployment generally
trending lower. The eurozone continued to struggle; with GDP
contracting in the final quarter of the 2011 calendar year
(CY) and remaining essentially flat in the first quarter of
CY2012. The euro area's unemployment rate hit a record high of
11%, but in some countries, like Spain, Greece, Ireland and
Portugal, the picture was worse than the aggregate number
suggests. In South Africa, economic growth remained sluggish
and mainly consumer-led, with the performance of the
manufacturing sectors still well below their pre-crisis highs.
During the nine months ended 31 March 2012, the high oil price
combined with a weakening of the rand/US dollar exchange rate
resulted in a 31% rise in average domestic fuel prices.
International chemical prices were flat, due to lower demand
in downstream markets because of weaker consumer confidence in
Europe and a slowdown in the Chinese economy. Chemical product
margins continued to be under pressure as feedstock prices
increased in line with higher oil prices.
Our European chemicals businesses experienced lower demand and
softer product prices during this period in light of weakening
European macroeconomic conditions. We remain focused on
working capital management, cost containment, planning and
optimisation, and margin optimisation activities.
Improved operational performance
Sasol Synfuels' year-to-date production at the end of March
2012 was 5,26 million tons. This represents a 1,89 million ton
increase from year-to-date production levels at the end of
December 2011. This demonstrates the recovery of the
operations since the phased maintenance outage, industrial
action and production incidents which negatively impacted
production in the first half of the 2012 financial year.
The strong production performance, as well as favourable
prices, boosted operating margins.
We recently reached two significant Secunda Growth Programme
milestones. Two of four new gasifiers and the 17th reformer
were commissioned during the fourth quarter of the financial
year and are running well. The additional equipment we are
adding to the site will provide us with additional fuel and
chemical feedstock, spare capacity for greater flexibility as
well as additional efficiencies when the growth programme is
completed.
In Qatar, our ORYX GTL joint venture plant performed well,
achieving 3,6 million barrels (mmbbl) (Sasol's 49% share)
cumulative production over the nine month period at a
utilisation rate in excess of 80%. This was achieved despite a
planned maintenance outage earlier this calendar year. Our
ORYX GTL operations continue to achieve new production
records. In April and May 2012, the monthly average production
surpassed 34 000 bbl/d (5% above design capacity).
Sasol Olefins & Surfactants' production in the nine months to
31 March 2012 was slightly lower, as sales volumes were
deliberately reduced to meet softer demand. We have seen some
improvement in the market recently and remain confident that
we can maintain operating margins around the upper single
digit levels for the year on the back of our continued focus
on product portfolio optimisation, some pass-through of price
increases and strict cost management. Our Lake Charles
operations continued to benefit from low US ethane prices. The
business also benefitted from a profit arising on the disposal
of its Witten-based production facilities and the associated
oleochemicals business to Cremer Oleo GmbH & Co amounting to
R282 million.
Arya Sasol Polymer Company continued to perform well.
Production volumes for the period were negatively influenced
by the downtime required to debottleneck the demethaniser
column in the cracker section of the plant. The work was
completed successfully and the cracker has since concluded its
full-rate trials and the plants are running steadily at higher
rates. Sasol's 50% share of the year-to-date total production
output from the plants was 302 kt achieving an average
utilisation rate of approximately 84%.
Our South African-based polymers business continued to
experience margin pressure in line with the global polymer
industry. This was due to high feedstock costs, low market
demand as a result of slowing emerging market growth, the
European debt crisis, and increased competition from new
producers. The business did, however, benefit from the weaker
rand. Operations stability and operational efficiency are key
focus areas for this business and we have made significant
progress with the projects identified to improve production
performance.
The Ethylene Purification Unit (EPU5) project will increase
ethylene available for our polyethylene plants and is expected
to come on line in CY 2013.
Sasol Solvents' business performance for the nine months to 31
March 2012 was disappointing, due to high feedstock costs and
lower product prices resulting from weaker demand. Production
volumes were also depressed by constrained feedstock
availability on the back of the Sasol Synfuels' incidents in
the first half of FY2012, planned shutdowns as well as market
constraints. The weaker rand did, however, ease pressure on
margins. Given the current weak market conditions, we embarked
on various business improvement and optimisation initiatives
to improve the performance of our plants and marketing
activities.
In our Sasol Petroleum International (SPI) business, the
Inhassoro I-9z well drilled in 2010 resulted in the first
light oil discovery in Mozambique. In March 2012 we launched
an extended well test (EWT) to test production rate and fluid
composition, which will assist in determining the economic
viability of developing the Inhassoro field. If successful,
the Inhassoro field development will improve the viability of
a potential liquefied petroleum gas (LPG) project in
Mozambique.
Upstream feasibility studies on the 2008 and 2009 Njika-1 and
Njika-2 gas discoveries in Block 16 and 19 offshore Mozambique
were recently completed. These studies included in-house
technical work and an independent assessment by a third party
consultant. Results suggest that an economic development of
the Njika gas discoveries is highly unlikely and US$56,8
million of capitalised costs will therefore be written off in
FY12.
In Gabon, oil production remained steady at around
20 000 bbl/d in the asset in which we hold a 27,75% working
interest. The Etame Expansion Project, to evaluate the
feasibility of increasing oil recovery in the permit,
progressed well. We expect the drilling campaign to commence
in October 2012, which will include the drilling of two
development wells.
In Australia, Sasol Petroleum International (SPI) entered a
farm-in agreement in February 2012 for 35% equity in
Woodside's operated WA-433-P license, offshore in the
Carnarvon Basin. The operator drilled the Vucko-1 exploration
well in April 2012 but no hydrocarbons were found. The well
was found to be dry and will have a negative impact of
approximately US$ 35 million.
Our Canadian shale gas assets (Farrell Creek and Cypress A)
are under pressure because of low gas market prices, higher-
than-expected drilling and completion costs and high
depreciation. This resulted in a substantial loss position in
the year to date.
The gas production rate for the quarter to the end of March
averaged 104,7 million standard cubic feet per day (mmscf/d)
(100% gross). The year-to-date output for the assets on 31
March 2012 was 11,1 billion standard cubic feet (bscf) (100%
gross).
The Talisman Sasol Montney Partnership agreed to reduce the
number of active rigs to four for the first half CY2012 and to
three rigs from August 2012, in response to the depressed gas
market prices. The reduction in the number of rigs will not
impede the de-risking of the assets that is currently
underway. The partnership will still achieve its land-
retention objectives. Sasol remains fully aligned with
Talisman on its asset development strategy. We remain
committed to economically viable appraisal and production
activities and prudent capital spending at both our sites.
This is managed in a way that does not jeopardise our gas-to-
liquids (GTL) ambitions with respect to GTL gas cover
requirements.
Financial performance
Weaker rand increases inflationary cost pressures
The weaker rand/US dollar exchange rate (R7,67/US$ at 31 March
2012) negatively impacted cash fixed costs by 3% for the nine
months ended 31 March 2012. Cash fixed costs, excluding once-
off and growth costs, increased by 4% in real terms. We expect
to derive sustainable cost savings through our energy self-
sufficiency project, improved production reliability as well
in the medium term from the standardisation and consolidation
of our group SAP systems.
Strong cash generation funds growth and returns
Healthy cash generation for the nine months ended 31 March
2012 reduced group debt after funding significant capital
expenditure, allowing the group to maintain a strong balance
sheet. Our strong balance sheet supports the funding of our
capital growth programme, potential acquisition opportunities
as well as our progressive dividend policy whilst providing a
buffer against volatility and retaining flexibility in
uncertain credit markets where the cost of funding has
increased. We continue to focus on strengthening working
capital management and monitoring credit exposure and
counterparty risks.
Projects update
Good progress made with our mining replacement project
As part of the R14 billion mining replacement project to
replace 60% of our Sasol Mining operating capacity in Secunda
in the next eight years, we inaugurated the R3,5 billion
Thubelisha Shaft at the Twistdraai Colliery in Mpumalanga,
South Africa in May 2012.
The shaft comprises an operation delivering more than
8 million tons per annum (mtpa) of coal over a period of
25 years from a maximum of 12 coal-production sections. It is
the first milestone in this large-scale project to replace
ageing operations. The shaft will extend the life of the
Twistdraai Colliery beyond 2039 and will supply coal to Sasol
Synfuels, as well as to the export markets.
Sasol's Gas Engine Power Plant (GEPP) project in progress
The construction of the Sasolburg project to produce
140 megawatts (MW) of power using natural gas is progressing
well. The first gas engines arrived in Sasolburg in May 2012.
The R1,8 billion project will replace coal-fired power
generation and enable Sasol to reduce its carbon dioxide (CO2)
emissions from Sasolburg by a further one million tons a year.
Construction started in July 2011 and commissioning is
expected in the fourth quarter of CY 2012. Sasol concluded an
agreement with Finnish company Wartsila South Africa to
operate and maintain the plant for three years. As a result of
this and other projects, Sasol is on track to produce
approximately 60% of its electricity requirements by CY 2013.
Growing our heartland in Mozambique
We recently completed the US$220 million gas project to expand
the capacity of the Central Processing Facility (CPF) in
Mozambique. This increases the CPF's capacity to 183 million
gigajoules per annum (MGJ/a) from 120 MGJ/a. The additional
63 MGJ/a from the expansion is split as follows:
a) 27 MGJ/a for the Mozambican electricity market;
b) 27 MGJ/a for the South African market, through a gas
sales contract with Sasol Gas; and
c) 9 MGJ/a as royalty gas allocated to the Mozambican
government.
Through Sasol New Energy, Sasol is also looking at developing
additional gas-fired electricity generation in Mozambique, in
partnership with the country's state-owned power utility
Electricidade de Mozambique (EDM) at Ressano Garcia. A final
investment and funding decision is expected in the second half
of CY 2012. The Mozambican Gas Engine Power Plant Project (49%
Sasol shareholding) for a 140 MW electricity generation power
plant is expected to start operating in CY 2014.
Canada GTL
Sasol and Talisman are currently reviewing the results of the
feasibility study of constructing a 48 000 bpd GTL plant in
Western Canada. For their own internal reasons, Talisman has
decided that they will not be exercising their right to
participate in the Front End Engineering and Design (FEED)
phase of such a GTL plant. The commercialisation of GTL
technology remains a core strategic driver of Sasol.
Sasol will finalise its assessment of the feasibility study
and will take a decision on whether or not to proceed to the
FEED phase of the project in the second half of 2012.
US Lake Charles GTL
The US Lake Charles GTL feasibility study is progressing well
and a decision to proceed to the FEED phase will be made in
the second of 2012.
US Lake Charles Ethane Cracker
The US Lake Charles Ethane Cracker feasibility study is
progressing well and a decision to proceed to the FEED phase
will be made in the 2013 calendar year.
Update on strategic issues
Sasol Mining meets the Mining Charter BEE ownership
requirements
On 11 May 2012, the Department of Mineral Resources (DMR)
credited Sasol Mining with 26% black economic empowerment
(BEE) ownership stemming from the participation of black Sasol
Mining employees in the Sasol Inzalo share transaction. As the
Ixia Coal transaction contributes further to Sasol Mining's
BEE ownership, the combined BEE ownership in Sasol Mining is
in excess of 40%, and exceeds the Mining Charter requirement
of 26% by 2014.
Clean Fuels 2 update
The Clean Fuels 2 (CF2) specification regulations (R 431
Correction notice) were gazetted on 1 June 2012. We continue
to engage with the South African Government (National Treasury
and the Department of Energy) on cost-recovery mechanisms and
specifications to be prepared and published by the South
African Bureau of Standards.
Polymers competition enquiry
The South African Competition Commission (the Commission)
alleges that Sasol Chemical Industries Limited charged
excessive prices for propylene and polypropylene in the South
African market from 2004 to 2007. We are disputing the
Commission's allegations. In 2010, the matter was referred by
the Commission to the Competition Tribunal. The trial was
originally set down to be heard before the Competition
Tribunal from 16 July 2012 to 10 August 2012. However, as a
result of an application brought by the Commission to postpone
the hearing, the trial is now set down for mid-May to June
2013.
Reviewing our activities in Iran
In November 2011, we announced that we had entered into
preliminary talks for a possible divestiture of our share in
Arya Sasol Polymer Company. The plant produces integrated
ethylene and polyethylene products for export.
The products are not used in the development of petroleum or
natural gas resources or nuclear power in Iran. We continue to
engage with a number of interested parties who include
business and government stakeholders. Further announcements
will be made once sufficient progress has been made.
In view of recent developments regarding trade restrictions
and possible oil sanctions, we recently terminated our
purchases of Iranian crude oil. Our procurement of Iranian
crude oil stood at 12 000 bbl/d, representing about 20% of our
crude requirement for processing at our Natref joint venture
refinery.
Guidance for the full year
We expect the global and South African economy to maintain a
modest recovery into the new financial year. However, the
outcome of a number of risks, including events related to the
European debt-crisis, is clouding the outlook. The United
States also faces challenges to resolve its fiscal impasse. In
South Africa, the policy conference of the ruling African
National Congress runs from 26 June 2012 to 29 June 2012 and
the party's elective conference is scheduled for the end of
CY 2012.
We expect an overall solid production performance for the 2012
financial year:
* Sasol Synfuels' volumes will be approximately 7,1 Mt;
* Volumes from our shale gas venture in Canada will grow
steadily;
* The full-year average utilisation rate at ORYX GTL in
Qatar will be in the upper 80% range of nameplate
capacity; and
* Full-year production at Arya Sasol Polymer Company in
Iran will be approximately 84% of nameplate capacity.
Although the weaker rand continues to exert pressure on our
South African businesses we expect that our fixed costs
increase will be in line with inflation (i.e. production price
index, PPI). Oil prices are expected to be volatile over the
near term due to weakening demand for oil in Europe, softer
growth in emerging markets and the US, as well as stronger-
than-expected increases in supply. Expected currency and
commodity price volatility will impact the valuation of
closing balances at year end.
Based on the production guidance and macro-economic
indicators, we expect to deliver increased earnings for the
2012 financial year compared to the attributable earnings of
R19,8 billion in the 2011 financial year.
However, the currency and commodity price volatility to which
our earnings are particularly sensitive, together with any
adjustments that may arise from our year-end closure process,
would determine whether we issue a trading statement to the
market in terms of the JSE Listings requirements.
Sasol's cash balance is expected to increase in the current
financial year from the previous year, mainly due to an
increase in cash generated from operating activities despite
higher capital expenditure. We estimate group capital
expenditure for the full financial year to be approximately
R29 billion. This is in line with previous guidance.
The forecast financial information appearing in this update
has not been reviewed or reported on by Sasol's external
auditors. We will release Sasol's full-year results on Monday,
10 September 2012.
Best regards,
Christine Ramon
28 June 2012
Johannesburg
Issued by sponsor: Deutsche Securities (SA) (Pty) Ltd.
Notice of site visit
Secunda & Sasolburg site visit and Management Presentation
- 1 and 2 November 2012
Other events 2012
* 10 September - Full year 2012 financial results
release and Dividend declaration
* 15 October - Dividend payment (electronic and
certified register)
* 27 November - Sasol Inzalo Public Limited Annual
General Meeting
* 30 November - Sasol Limited Annual General Meeting
* 3 December - CFO Letter announcement
Investor Relations Contacts
investor.relations@sasol.com +27 11 441 3113
Raj Naidu (Analyst Contact)
Executive: Investor Relations and Shareholder Value
Management
Zanele Salman (Technical Contact)
Tanya Landman (Financial Contact)
Forward-looking statements disclaimer:
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.
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: June 28, 2012 By: /s/ V D Kahla
Name: Vuyo Dominic Kahla
Title: Company Secretary