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 January 28, 2016
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: Trading statement for the six months ended 31 December 2015
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")
Trading statement for the six months ended 31 December 2015
The first half of the 2016 financial year was characterised by a
continued strong business performance across most of the value
chain. Our business performance was however negatively impacted
by challenging and highly volatile global markets, marked by a
steep decline in global oil and commodity chemical prices, partly
offset by a weaker Rand exchange rate.
Sasol's headline earnings per share (HEPS) for the six months
ended 31 December 2015 are expected to decrease by between 23%
and 28% (approximating R7,36 to R8,96 per share) compared to the
2015 financial half year (comparable period) HEPS of R32,00.
Earnings per share (EPS) for the same period are expected to
decrease by between 62% and 67% (approximating R19,86 to R21,47
per share) from the comparable period EPS of R32,04. On a
normalised basis, excluding the impact of once-off items such as
net impairment charges and the share-based payment expense, EPS
are expected to decrease by between 8% and 13% (approximating
R2,17 to R3,53 per share).
The Group's profitability was adversely impacted by a 47% lower
average Brent crude oil price (average dated Brent was
US$47/barrel(b) for the six months ended 31 December 2015
compared to US$89/b in the comparable period). Further, the price
of our basket of commodity chemicals declined by 23% compared
with the comparable period. The effect of lower oil and commodity
chemical prices was partly offset by a 24% weaker average rand/US
dollar exchange rate (average rand/US dollar exchange rate was
R13,62 for the six months ended 31 December 2015 compared to
R10,99 in the comparable period). The average margin for our
speciality chemicals remained resilient and in line with the
comparable period.
Notwithstanding the tough macroeconomic environment, we continued
to focus on factors within our control by delivering a strong
operational performance across our global integrated value chain.
The highlights of our operational performance were:
- Secunda Synfuels operations increased production volumes by 3%
compared to the comparable period.
- Total liquid fuels production for the Energy business increased
by 4% compared to the comparable period as a result of a higher
portion of Synfuels volumes being utilised by the Energy business.
Sales volumes for the Energy business decreased by 1% compared to
the comparable period on the back of difficult market and trading
conditions experienced in December 2015, driven by lower demand
for liquid fuels in Southern Africa.
- The ORYX GTL facility continued to deliver a solid performance,
with an average utilisation rate of 90% for the period.
- Secunda Chemicals and Sasolburg operations' production volumes
remained in line with the comparable period. The increase in volumes
from our Fischer-Tropsch Wax Expansion Project was offset by lower
C3 volumes as a result of planned commissioning activities associated
with the C3 Expansion Project.
- Sales volumes for the Base Chemicals business decreased by 13% due
to lower C3 volumes available as a result of commissioning the C3
Expansion Project and softer demand for some commodity chemical products.
- Sales volumes from our Performance Chemicals business, normalised for
the planned shutdown at our ethylene plant in North America, remained
on par with the comparable period.
A detailed production summary and key business performance
metrics for the first half of the 2016 financial year for all our
businesses are available on our website, www.sasol.com.
Our company-wide Business Performance Enhancement Programme aimed
at delivering sustainable cost savings of R4,3 billion by the end
of financial year 2016, continues to progress very well, and we
are on track to exceed our sustainable cost savings target for
the current financial year. These efforts resulted in increases
in normalised cash fixed costs continuing to trend well below
inflation for the period.
Our comprehensive Response Plan focussed on cash conservation, in
reaction to the lower-for-longer oil price environment, has
continued to yield cash savings in line with our 2016 financial
year targets. The Response Plan positioned the company well
within a US$45-50/b oil price environment. We are currently
assessing the implications of the latest developments in the
external macroeconomic environment on the scope of our Response
Plan and will communicate further details regarding the potential
update of our Response Plan targets in our results announcement
on 7 March 2016.
In addition, Sasol's profitability was further impacted by the
following once-off items:
- A net remeasurement charge of R7,6 billion for the first half
of the 2016 financial year compared to a R0,2 billion expense in
the comparable period. This mainly relates to a partial impairment
of our share in the Montney shale gas asset of R7,4 billion
(CAD665 million) due to a further deterioration of conditions in
the North American gas market resulting in a 16% decline in
forecasted natural gas prices. The impairment had a negative
impact on the effective tax rate for the group. This asset remains
highly sensitive to changes in the gas price. We estimate that a
5% change in the gas price may result in a change of CAD255 million
(approximately R2,9 billion) in the recoverable amount of the asset.
- A cash-settled share-based payment charge of R0,4 billion compared
to a credit of R2,9 billion for the comparable period.
- The positive impact from the reversal of a tax provision of
R2,3 billion (US$166 million) based on a favourable ruling received
from the Tax Appeal Tribunal in Nigeria relating to the
Escravos Gas-to-Liquids (EGTL) project. The reversal of the
provision reduced the effective tax rate for the group.
Our results for the first half of the 2016 financial year may be
further affected by any adjustments resulting from our half-year-
end closure process. This may result in a change in the estimated
earnings noted above. This trading statement only deals with the
comparison to the first half of the 2015 financial year. Guidance
will be provided on the expected full 2016 financial year's
results when there is a reasonable degree of certainty in this
regard. We expect that there will be a further negative impact on
our results for the remainder of the 2016 financial year due to
lower oil and commodity chemical prices.
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 six months
ended 31 December 2015 will be announced on Monday, 7 March 2016.
28 January 2016
Johannesburg
Sponsor: Deutsche Securities (SA) Proprietary Limited
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 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 9 October 2015 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 January 28, 2016 By: /s/ V D Kahla
Name: Vuyo Dominic Kahla
Title: Company Secretary