Opinion on  Sasol Ltd ADSs (SSL)     Sector: Basic Materials  >  Industry: Chemical Manufacturing
Sasol Limited - Expected Earnings Per Share for the Financial Year Ending 30 June 2009 to Decrease by Between 40% and 50% Compared to the Prior Year

<font> <font>    Friday, June 19, 2009 6:08:00 AM ET </font> </font>

<font> Introduction </font>

<font> At the announcement of our interim results on 9 March 2009, we expected a reduction in earnings for the full 2009 financial year compared to the 2008 financial year. It was clear at that stage that the considerably lower prices would far outweigh the positive effects of production volume increases and the crude oil hedge. At the time the volatility and uncertainty of global markets made it difficult to be more precise in this interim results outlook statement. </font>

<font> Earnings outlook for full year 2009 </font>

<font> Sasol’s attributable earnings per share and headline earnings per share for the year ending 30 June 2009 are estimated to decrease by between 40% and 50% compared to the prior year. The expected decrease in earnings is mainly due to the lower crude oil and chemical prices referred to above, together with a considerable reduction in refining margins and a further deterioration in chemical markets. This earnings guidance includes the impact of the non-cash charges relating to the Sasol Inzalo BEE transaction and the administrative penalties paid to the European Commission and the South African Competition Commission. </font>

<font> Overall group production volumes are up mainly due to increased production volumes at the Oryx GTL plant and the additional production volumes at the Arya Sasol Polymers plant. The Synfuels operations in Secunda, South Africa, are expecting production volumes to be about 4% lower than last year. </font>

<font> The overall deterioration in market conditions will also result in negative stock effects, net realisable value stock write-downs and impairments. </font>

<font> Several assumptions have been made in estimating the expected earnings for the full financial year 2009. These assumptions are based on the best information currently available. Our results may be further impacted by changes in the oil and product prices, the impact of a much stronger rand on closing financial assets and liabilities, additional impairments as well as any adjustments resulting from our year-end process. This may result in a change in the estimated earnings. </font>

<font> Positive cash position and a strong balance sheet position the group well </font>

<font> Sasol has a positive cash position and a strong balance sheet. The cash conservation approach has ensured that Sasol continues to generate considerable cash flows, which keep the group well-positioned in the current economic climate, and fund our growth programme. </font>

<font> Growth plans remain unchanged keeping our shareholder value proposition intact </font>

<font> The overarching objective of our growth plans remains unchanged, keeping our shareholder value proposition intact: 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 have reprioritised our planned capital expenditure to R16 billion for 2009 in light of the changed market conditions, including assessing the opportunities that the current environment presents. </font>

<font> Sasol’s financial results for the year ending 30 June 2009 will be announced on Monday 14 September 2009. </font>

<font> The above information has not been reviewed or reported on by the Company’s auditors. </font>

  <font>     Sasol Investor Relations 
     Tel: +27 11 441 3113 / 3563 / 3321 
     Investor.relations@sasol.com 
  
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