Sasol Limited: Expected Earnings for the Six Months Ended 31 December 2008 and Revised Outlook for the Financial Year Ending 30

Share codes: JSE - SOL; NYSE - SSL 


JOHANNESBURG, South Africa, Jan. 21  /PRNewswire-FirstCall/ -- 1. Expected earnings for the six months ended 31 December 2008

Sasol's attributable earnings per share and headline earnings per share for the six months ended 31 December 2008 are estimated to increase by between 55% and 65% over the comparable previous reporting period. The expected increase in earnings is mainly due to the weakening of the rand against the US dollar and an increase in crude oil and product prices compared to the corresponding six months of the previous reporting period.

Overall production volumes were also higher as a result of additional capacity and improved operations.

2. Revised outlook for financial year ending 30 June 2009

Market conditions have deteriorated in recent months due to the global economic downturn, with lower than expected crude oil and product prices as well as lower product demand. These impacts are partially mitigated by the weakening of the rand against the US dollar and the positive impact of the synfuels hedge to end May 2009.

Sasol's outlook statement given at the time of the announcement of our annual results on 8 September 2008 of 'robust growth forecast for 2009' is thus revised to 'a moderate reduction in earnings forecast for 2009 compared to the prior year'.

Several assumptions have been made in estimating the expected earnings for the full financial year 2009. These assumptions take cognisance of the volatile market conditions and will be regularly reviewed over the remainder of the financial year. This may result in a change in the estimated earnings.

Sasol announced on 19 January 2009 that it is systematically undertaking comprehensive group-wide reviews of its compliance with competition law.  This trading statement excludes any provision for fines or penalties that may be imposed by the South African Competition Commission.

3. Maintaining a strong cash position

Sasol has a positive cash position and a strong balance sheet, and has entered a cash conservation mode given the global economic crisis. Sasol continues to generate considerable cash flows, which keep the group well-positioned in the current economic climate as well as meeting all existing debt service requirements.

We are responding to the global economic crisis by continuing to manage our balance sheet prudently and have lowered our targeted gearing (net debt to equity ratio) from the previous range of 30% - 50% to 20% - 40%. Our focus remains on sustainable cost containment and improving business operational efficiencies.

The overarching objective of our growth plans remains unchanged: to ensure prudent management of our resources while pursuing those projects and programmes that are in the best interests of our shareholders and other valued stakeholders. Therefore, we are reviewing and reprioritising our planned capital expenditure of R16bn for 2009 (R70bn for the 3 years 2009-2011) in the light of the changed market conditions, including assessing the opportunities that the current environment presents.

4. Project update

In the near future Sasol will post on its website (http://www.sasol.com/) an update of its South African and international projects.

Sasol's financial results for the six months ended 31 December 2008 will be announced on Monday, 9 March 2009.

The above information has not been reviewed or reported on by the Company's auditors.

  Sasol Investor Relations
  Tel.: [phone] / 3563 / 3321
  

  Forward looking statements



In this announcement we 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 2008 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. 

DATASOURCE: Sasol Limited



CONTACT:  Sasol Investor Relations: [phone] / 3563 / 3321,





Web Site:  http://www.sasol.com/ 

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