Sasol Limited: Trading Update for the Six Months Ended 31 December 2010

JSE - SOL; NYSE - SSL

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Feb 04, 2011, 05:56 ET

JOHANNESBURG, Feb. 4, 2011 /PRNewswire/ --

1. Introduction

Product prices have remained quite resilient with higher oil prices, refining margins and chemical prices being realised. Although the relatively strong rand has put pressure on the group's earnings, the year-on-year improvement in product prices has largely mitigated this negative effect. The sustained strength of the currency remains a key challenge to the group although there has recently been a slight weakening. We are therefore maintaining our focus on the factors within our control, such as cost management and operational efficiency.

As announced in December 2010, Sasol has made a significant investment in upstream shale gas resources in support of its gas-to-liquids (GTL) value proposition in North America.

2. Expected earnings for the six months ended 31 December 2010

Sasol's earnings per share and headline earnings per share for the six months ended 31 December 2010 are estimated to increase by 17% - 27% compared with the prior year comparable reporting period. The expected increase in earnings is mainly due to a strong focus on cost containment as well as an improvement in crude oil prices and product prices, partially offset by the continued strength of the rand against the US dollar.

The Ixia empowerment transaction announced last year resulted in WIPCoal Investments owning effectively 10.2% of the equity in Sasol Mining. The once-off non-cash share based payment expense relating to the transaction resulted in an impact of approximately R1 on both headline earnings per share and earnings per share.

Our half-year closure process is currently in progress and further adjustments may arise including remeasurement effects.

This trading update deals only with the first half of the 2011 financial year comparison.

Sasol's financial results for the six months ended 31 December 2010 will be announced on or about Monday, 7 March 2011.

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

Investor Relations Team
+27 (0)11 441 3321 / 3563

Forward looking statements

In this document 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 28 September 2010 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.

SOURCE Sasol Limited