JOHANNESBURG, March 8, 2011 /PRNewswire/ -- Sasol (JSE: SOL;NYSE: SSL) announces that it has entered into hedging transactions (zero cost collars) for 4,56 million barrels of oil (equivalent to circa 30% of its planned South African synfuels and West African crude oil production for the final quarter of the 2011 financial year). The zero cost collars expire on 15 June 2011.
The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below US$85 per barrel (put level) on the hedged portion of production. Conversely, Sasol will incur opportunity losses on the hedged portion of production should monthly average oil prices exceed a volume weighted average US$172.77 per barrel (call level). Call levels between US$170 per barrel and US$175 per barrel were entered into.
Sasol assesses the appropriateness of oil price hedging continuously and periodically enters into hedging transactions to improve the stability and predictability of cash flows as part of its risk management activities.
Sasol Investor Relations
Tel.: +27 (0)11 441 3321 / 3563
Deutsche Securities (SA) (Pty) Limited
Forward-looking statement - Disclaimer:
Sasol may, in this announcement, 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, resource volumes and values 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.
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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.
Date: 08/03/2011 17:39:00 Produced by the JSE SENS Department.
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SOURCE Sasol Limited