JOHANNESBURG, June 6, 2016 /PRNewswire/ --
In terms of the JSE Limited Listings Requirements, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported will differ by at least 20% from the financial results for the previous corresponding period.
Sasol's headline earnings per share (HEPS) for the financial year ending 30 June 2016 are expected to decrease by between 10% and 30% (approximating R4,98 to R14,93 per share) compared to the 2015 financial year (comparable period) HEPS of R49,76. Earnings per share (EPS) for the same period are expected to decrease by between 53% and 73% (approximating R25,82 to R35,56 per share) from the comparable period EPS of R48,71.
The volatile macroeconomic environment, in particular lower crude oil prices, has had a significant impact on earnings. EPS was further impacted by the R7,4 billion (CAD665 million) impairment of our share in the Montney shale gas asset recognised in December 2015. Due to a further decline of natural gas prices in North America, we will recognise an additional impairment of approximately R4,1 billion (CAD340 million), resulting in a total impairment of R11,5 billion. This impairment contributed to a 39% decrease of EPS.
We expect production volumes and cost reductions to be better than our previous guidance. Further details on our operational and financial performance will be provided in a trading update in early August 2016.
The current volatile market conditions may however further impact our results, particularly changes in oil, product prices and movements in the rand/dollar exchange rate.
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 financial year ending 30 June 2016 will be announced on Monday, 12 September 2016.
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, executing our growth projects and cost reductions, including in connection with our Business Performance Enhancement Programme and Response Plan. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" 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 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.
Cavan Hill, Senior Vice President: Investor Relations
SOURCE Sasol Limited