Sasol's 2003 Annual Financial Results.
Business Editors
JOHANNESBURG, South Africa--(BUSINESS WIRE)--Sept. 8, 2003--
Clear Direction in Stormy Seas
-- Strong rand results in adverse currency effects - R4,2 billion
-- Excluding currency effects operating profit up by 9%
-- Including currency effects operating profit and attributable
earnings down by 19% and 20%
-- Severe margin pressures in chemical businesses
-- Total dividend held at 450 cents
-- Five year growth targets met and major capital projects on
track
Audited consolidated profit statement and declaration of dividend
number 48 for the year ended 30 June 2003
Financial Overview
For the 2003 financial year, operating profit before currency
translation effects decreased by 4% from R14 227 million to R13 619
million compared to the last financial year. After currency
translation effects, operating profit decreased by 19% from R14 783
million to R11 911 million. Attributable earnings and earnings per
share decreased by 20% from R9 817 million to R7 817 million and from
1 603 cents to 1 283 cents respectively. During the year the group
changed its accounting policy with respect to borrowing costs.
Excluding the effect of this change, attributable earnings and
earnings per share on a comparable basis decreased by 24% from R9 496
million to R7 174 million and from 1 550 cents to 1 177 cents
respectively.
International oil prices were on average 14% higher than in the
previous financial year. The following, however, more than offset this
benefit and were the main causes of the decrease in basic attributable
earnings:
-- the strengthening of the rand-US$ exchange rate from an
average of R10,13:US$ 1 in the previous reporting period to
R9,03:US$ 1 (R1,9 billion), and from a closing rate at 30 June
2002 of R10,27:US$ 1 to R7,50:US$1 (R2,3 billion) at 30 June
2003. The total adverse impact on operating profit of these
currency effects amounted to R4,2 billion,
-- the depressed margins of various chemicals and in particular
alkylates, and
-- the losses arising from the extended Natref shutdown and
unforeseen problems and delays experienced with the refinery
expansion project.
Other than Sasol Olefins & Surfactants and Sasol Oil, the group
performed reasonably well in difficult global trading conditions that
were exacerbated by the effects of the Middle East war and the SARS
virus in Asia.
Sasol's plants world-wide ran well and customers' requirements
were met. Pleasing improvements were made in safety, environmental and
risk management.
Capital expenditure incurred amounted to R11 billion. Major
projects advanced or completed during the year include:
-- the pioneering gas-to-liquid (GTL) fuels projects in Qatar and
Nigeria,
-- the Mozambique gas project which will bring natural gas for
the first time to the industrial heartland of South Africa,
and
-- the n-butanol and acrylic acid and acrylates projects at
Sasolburg.
At 30 June 2003, gearing (total debt less cash as a percentage of
shareholders' equity) amounted to 33% which was within the company's
targeted range of 20% to 40%. In response to the group's capital
expansion programme and debt-funding requirements, the group's gearing
target-range was increased to 30% - 50% during the year. This decision
followed substantial research and stress-testing of Sasol's balance
sheet and business plans.
The total dividend declared of R4,50 is equivalent to that of the
previous reporting period and reflects a dividend cover of 2,9.
Notable achievements during the year included Sasol's improved
credit rating by international agency Standard and Poor's, and the
successful secondary listing of Sasol on the New York Stock Exchange.
-- Sasol is an integrated oil and gas company with substantial
chemical interests.
-- Sasol is listed on the JSE Securities Exchange South Africa and on
the New York Stock Exchange.
-- A billion is defined as one thousand million.
-- The consolidated financial statements of Sasol Limited are
presented on a summarised basis.
Sasol Mining
Lower international coal prices and the stronger rand adversely
impacted on Sasol Mining's export revenues resulting in operating
profit decreasing by 4% from R1 335 million to R1 277 million.
Various productivity improvements were again achieved as a
continuation of Sasol Mining's business renewal initiatives. Machine
and per-capita productivity improved by 9% and 3% respectively and
increases in cash costs per ton were contained to 4%, which is within
the South African Producer Price Index (PPI) rate of inflation.
Sasol Mining was recognised for its successes and business stature
when it received the International Coal Company of the Year Award at
the 2002 Platts/Business Week Global Energy Awards in New York.
Sasol Synfuels
Sasol Synfuels advanced its business renewal initiatives launched
in the mid-1990s and maintained turnover at the record levels achieved
in the 2002 financial year. The benefit of higher international crude
oil prices was mostly offset by the impact of a stronger rand
resulting in operating profit increasing slightly to R8 048 million.
An initiative was advanced in partnership with Sasol Technology
and Sasol Oil to ensure compliance with the new fuel specifications
that are expected to become mandatory in South Africa in 2006. It is
estimated that about R7 billion will be invested to modify the liquid
fuel refining and blending operations and to construct new plants to
increase the octane rating of Secunda's synthetic petrol.
This project will liberate significant further quantities of
monomer feedstock which will enable Sasol Polymers to progress with
value-adding polymer expansion projects.
Sasol Oil and Gas
Operating profit reduced by 39% from R2 021 million to R1 223
million. The benefit of higher oil and fuel prices as well as higher
gas sales was more than offset by the impact of a stronger rand and
losses arising from the Natref shutdown (R200 million) and
difficulties experienced with the Natref expansion project (R200
million). The plant has since operated satisfactorily and record
production levels have been achieved.
The introduction of the new Basic Fuel Price (BFP) mechanism in
April 2003 to replace the in-bond landed cost (IBLC) pricing formula
had minimal effect on profits.
Negotiations have progressed with other oil companies to conclude
new supply agreements to replace the Main Supply Agreement which
expires on 31 December 2003.
Preparation for the introduction of natural gas from Mozambique
into South African markets is progressing well.
Sasol's Chemical Businesses
-- sasol olefins and surfactants (O&S)
The depressed global economy and significant margin pressures
caused by lower product prices and higher feedstock costs resulted in
operating profit reducing by 95% from euro 133 million to euro 7
million. In rand terms, operating profit reduced from R1 207 million
to R67 million.
The performance of the alkylates business was particularly
disappointing. Linear alkylbenzene (LAB) selling prices came under
pressure because of surplus global capacity. Kerosene and benzene
feedstock costs increased to an all-time high.
Low capacity utilisation at Sasol's LAB plants led to the
suspension of production at the Porto Torres LAB facility in Italy and
a 30% reduction of the workforce of the LAB plant at Baltimore in the
USA.
While the monomers business within Sasol O & S also had
disappointing results primarily because of low co-monomer prices, all
other businesses in Sasol O & S achieved satisfactory performances in
Euro, but in rand terms were adversely affected by the stronger rand.
Various businesses in the chemical portfolio are being scrutinised
and reviewed to ensure strategic fit and the ability to meet financial
performance targets on a sustainable basis. Certain businesses and
product groups are being considered for rationalisation, potential
disposal and/or an intensified process of cost reduction and
productivity improvement.
-- Sasol Polymers
Turnover increased by 12% from R5 580 million to R6 245 million.
Higher feedstock costs and rand appreciation resulted in operating
profit decreasing by 3% from R913 million to R890 million. A focus on
continuous improvement was maintained and the business increased per
capita production by 9%.
Plant operations remained stable with some units achieving
production records. The polyethylene plant in Malaysia overcame
start-up problems experienced during the first half of the financial
year and by year-end was running at full capacity.
Sasol Polymers Germany entered into a joint venture with the
National Petrochemical Company of Iran to construct and operate an
integrated world-scale ethylene and polyethylene complex in Iran.
-- Sasol Solvents
The benefits of cost-cutting initiatives and record turnover
resulted in Sasol Solvents increasing its operating profit before
translation effects by 3% from R704 million to R728 million. The
rand's appreciation, however, resulted in a 45% decrease in operating
profit after translation effects from R786 million to R436 million.
Most business units performed to expectations and contributed
satisfactorily to profits. Closer collaboration with Sasol O&S
world-wide is yielding even more operational synergies which, together
with the establishment of various shared services, will contribute to
further reduce costs.
-- Sasol Wax
Sasol Wax achieved satisfactory results during the year despite
aggressive competition and margin pressures caused by higher oil
prices. Operating profit increased by 33% from R175 million to R233
million. Demand for Fischer-Tropsch waxes produced at Sasolburg was
buoyant while competition from Chinese wax producers resulted in
margins for commodity waxes eroding in European markets.
-- Sasol Nitro
In a year characterised by higher demand for fertilisers and lower
demand for explosives, Sasol Nitro performed reasonably well. Rand
appreciation and increased logistics costs partly offset the benefit
of higher fertiliser prices resulting in operating profit decreasing
by 23% to R414 million. Cash cost increases were contained to well
within the PPI rate of inflation.
During the year a decision was taken to divest from Sasol Nitro's
underperforming explosives businesses in the USA and Canada resulting
in a further impairment cost of R158 million.
Sasol Petroleum International
The development of the Mozambique gas fields at Temane and Pande
progressed satisfactorily during the year. It is currently estimated
that Sasol has access to Mozambican gas reserves of about 3,2 trillion
cubic feet (tcf), or more than 500 million barrels of oil equivalent.
Sasol Synfuels International
Sasol's ambition to pioneer new-generation GTL conversion
technology in selected gas-rich regions advanced during the year.
Through the joint venture with Qatar Petroleum work commenced on the
construction of the plant at Ras Laffan, Qatar. In November 2002,
non-recourse financing amounting to US$ 700 million was successfully
arranged for the project. The engineering, procurement and
construction (EPC) contract was awarded in December 2002. The plant is
expected to be ready for commissioning before the end of December
2005.
The Sasol Chevron joint venture (between Sasol and ChevronTexaco)
made progress with the full-scale design of the GTL plant to be built
in Nigeria. It is envisaged that the EPC contract will be awarded
during 2004 and commissioning of the plant is expected during 2007.
Profit Outlook
International chemical prices are predicted to drift upwards or
remain unchanged and margins should improve because average oil prices
in the 2004 financial year are expected to be lower than in the past
year. A dominating influence on overall financial performance is,
however, expected from the rand's relationships with major currencies.
If the prevailing strength of the rand persists, it is unlikely that
rand earnings in the new financial year will match those of the 2003
financial year.
Looking ahead, the group is poised to enter its next growth phase
which will be spearheaded by the rollout of the GTL ventures over the
next few years. This will be supported by both the harvesting of
returns from our chemical investments and continuing major
contributions from our mining, oil and gas and synthetic fuels
businesses.
Corporate Governance
Following its listing on the New York Stock Exchange (NYSE) on 9
April 2003 and the publication of new listings requirements by the JSE
Securities Exchange South Africa (JSE) effective from 1 September
2003, the group had the opportunity to review its corporate governance
practices comprehensively. Sasol complies, to the extent required,
with the new JSE Listings Requirements, as well as the comprehensive
US governance standards recently augmented by rules adopted by the
NYSE and the US Securities and Exchange Commission in consequence of
the Sarbanes-Oxley Act. The group subscribes to, affirms its
commitment to and complies, in all material respects with the
principles of the Code on Corporate Practices and Conduct as contained
in the second King Report on Corporate Governance for South Africa.
All the key principles underlying responsible and effective corporate
governance practices and conduct are reflected in Sasol's corporate
governance structures and practices.
Declaration of Final Dividend Number 48
The directors of Sasol Limited have declared a final dividend of
235 cents per share (2002: 250 cents per share) for the year to 30
June 2003. The dividend has been declared in the currency of the
Republic of South Africa.
Trading in the STRATE environment requires settlement within five
business days. In accordance with the settlement procedures of STRATE,
the following dates will apply to the final dividend:
-0-
Last day for trading to qualify for and
participate in the final dividend (cum
dividend) Friday, 3 October 2003
Trading ex dividend commences Monday, 6 October 2003
Record date Friday, 10 October 2003
Dividend payment date (electronic and
certificated register) Monday, 13 October 2003
Dividend cheques in payment of this dividend to certificated
shareholders will be posted to shareholders on or about Monday, 13
October 2003. Electronic payment to certificated shareholders will be
undertaken simultaneously.
Shareholders who have dematerialised their share certificates will
have their accounts, at their Central Securities Depository
Participant or Broker credited on Monday, 13 October 2003.
In the case of certificated shareholders, notice of any change of
address of shareholders must reach the transfer secretaries,
Computershare Limited, on or before Friday, 3 October 2003. Share
certificates may not be dematerialised or rematerialised between
Monday, 6 October 2003 and Friday, 10 October 2003, both days
inclusive.
On behalf of the board
P du P Kruger P V Cox
Chairman Deputy chairman and chief executive
Sasol Limited, 5 September 2003
Report of the Independent Auditors
To the members of Sasol Limited
The summarised consolidated financial statements of Sasol Limited
have been derived from the audited consolidated financial statements,
prepared in accordance with South African Statements of Generally
Accepted Accounting Practice, International Financial Reporting
Standards and in the manner required by the Companies Act in South
Africa, of the company for the year ended 30 June 2003. We have
audited the consolidated financial statements in accordance with
statements of South African Auditing Standards. In our report dated
5September 2003, we expressed an unqualified opinion on the
consolidated financial statements from which the summarised
consolidated financial statements were derived.
Audit Opinion
In our opinion, the accompanying summarised consolidated financial
statements are consistent, in all material respects, with the audited
consolidated financial statements from which they were derived and are
prepared in accordance with the presentation and disclosure
requirements of South African Statements of Generally Accepted
Accounting Practice, International Financial Reporting Standards and
the requirements of the Companies Act in South Africa.
For a better understanding of the scope of our audit and the
company's consolidated financial position, results of operations and
cash flows, the summarised consolidated annual financial statements
should be read in conjunction with our audit report included in the
consolidated financial statements from which the summarised
consolidated financial statements were derived.
KPMG Inc
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg, 5 September 2003
Notes to the Financial Statements
Basis of Preparation and Accounting Policies
The summarised consolidated financial statements have been
prepared in compliance with the Listings Requirements of the JSE
Securities Exchange South Africa, in accordance with International
Financial Reporting Standards (IFRS) and the requirements of the South
African Companies Act, 1973, as amended.
The accounting policies applied in the presentation of the group's
summarised consolidated financial statements for the year ended 30
June 2003 are consistent with those applied in the previous year
except for the change in accounting policy to capitalise borrowing
costs.
These summarised consolidated financial statements have been
prepared in accordance with the historic cost convention except for
certain financial instruments which are stated at fair value.
The principal reporting currency of the Sasol group is rand. This
currency reflects the economic substance of the underlying events and
circumstances of the group. US$ figures are presented for the balance
sheet and income statement for convenience purposes only. Other US$
figures are not presented as they are not considered to be meaningful
Change in Accounting Policy
During the year, the group changed its accounting policy to the
allowed alternative treatment of the IFRS standard on Borrowing Costs
- IAS23. This treatment requires the capitalisation of borrowing costs
to certain qualifying assets during construction. The group's external
debt has increased materially over the past three financial years and
is used primarily to finance the group's capital expansion programme.
It was thus considered appropriate to capitalise borrowing costs to
certain qualifying assets rather than to expense it as incurred.
Comparative figures have been restated as if they had always been
prepared in accordance with this policy.
The effect of the change in accounting policy is as follows:
-0-
2003 2002
Rm Rm
----------------------------------------------------------------------
Increase in depreciation expense (142)(112)
Reduction in borrowing costs 1 061 579
Tax effect (276)(136)
Minority interest -- (10)
----------------------------------------------------------------------
Net increase in attributable earnings 643 321
----------------------------------------------------------------------
Increase in opening accumulated earnings 1 241 920
----------------------------------------------------------------------
Related Party Transactions
During the year, the group, in the ordinary course of business,
entered into various sale and purchase transactions with related
parties. The group enters into these transactions on an arm's length
basis at market rates.
Post-Balance Sheet Events
Sasol successfully issued a R 2 000 million corporate bond on 1
September 2003. The maturity date of the bond is 1 September 2007.
Interest is charged at 10,5% per annum payable 1 March and 1 September
each year.
On 11 July 2003 Sasol Italy S.p.A. acquired the remaining 48,05%
shares in G.D. Portbury Limited (Dubai) trading as Sasol Gulf for a
cash consideration of US$ 2,65 million (R20 million).
Anglo Operations Limited and Sasol Mining (Pty) Limited entered
into an agreement to develop the Kriel South coal reserves in
Mpumalanga province, South Africa. Anglo Operations Limited will
invest R769 million (US$ 96 million) and Sasol R320 million (US$ 40
million) in the project.
This Petroleum Products Amendment Bill aims to create a
legislative framework for the governance of the fuel industry. In
issuing wholesale licenses, wholesalers will be required to procure
products made from coal, natural gas or vegetable matter before buying
or selling products made from other raw materials.
The South African government has amended the Petroleum Pipelines
Bill such as to guarantee Natref's supply of crude oil at its current
capacity. This bill is of an enabling nature and provides for a
pipeline authority that will be empowered to set tariffs for petroleum
pipelines. The Bill does not specifically provide for a continued
differentiation between the pipeline tariff for the transport of
crude-oil and that of refined products. A reduction in this
differential would have an adverse effect on the refining margins of
the Natref refinery. Until such time as a decision on tariffs has been
taken, the impact on Sasol's share in Natref cannot be ascertained.
Principal Foreign Currency Conversion Rates
-0-
One unit of foreign currency equals 2003 2002
----------------------------------------------------------------------
Rand/US$ (closing) 7,50 10,27
Rand/US$ (average) 9,03 10,13
Rand/euro (closing) 8,63 10,19
----------------------------------------------------------------------
Rand/euro (average) 9,41 9,08
----------------------------------------------------------------------
Annual Report: the annual report will be posted to shareholders
and will be available on Sasol's website on or about 6 October 2003.
In this report we make certain statements that are not historical
facts and relate to analyses and other information based on forecasts
of future results and estimates of amounts not yet determinable,
relating, amongst other things, to volume growth, increases in market
share, total shareholder return and cost reductions. These are
forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as "believe", "anticipate",
"expect", "intend", "seek", "will", "plan", "could", "may", "endeavor"
and "project" and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of
identifying such statements.
Forward-looking statements involve inherent risks and
uncertainties and, if one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may be
very different from those anticipated. The factors that could cause
our actual results to differ materially from such forward-looking
statements are discussed more fully in our registration statement
under the Securities Exchange Act of 1934 on Form 20-F filed on March
6, 2003 and in other filings with the United States Securities and
Exchange Commission.
-0-
balance sheet
at 30 June
2002 2003 2003
Restated
US$ m US$ m Rm
--------------------------------------------------------------
ASSETS
3 744 5 652 Property, plant, equipment 42 363
( 50) ( 42) Goodwill and negative goodwill ( 314)
181 274 Intangible assets 2 051
48 60 Retirement benefit assets 451
186 263 Other long-term assets 1 971
------------------- ---------
4 109 6 207 Non-current assets 46 522
------------------- ---------
878 1,167 Inventories 8 748
1 024 1,486 Trade and other receivables 11 140
22 2 Short-term financial assets 12
367 514 Cash 3 851
------------------- ---------
2 291 3,169 Current assets 23 751
------------------- ---------
------------------- ---------
6 400 9,376 TOTAL ASSETS 70 273
------------------- ---------
EQUITY AND LIABILITIES
3 050 4,472 Total shareholders' equity 33 518
------------------- ---------
26 40 Minority interest 300
------------------- ---------
528 611 Long-term debt 4 581
282 332 Long-term provisions 2 486
271 345 Retirement benefit obligations 2 589
6 13 Long-term deferred income 96
590 816 Deferred tax 6 113
------------------- ---------
1 677 2,117 Non-current liabilities 15 865
------------------- ---------
338 865 Short-term debt 6 481
1 136 1,446 Other current liabilities 10 841
173 436 Bank overdraft 3 268
------------------- ---------
1 647 2,747 Current liabilities 20 590
------------------- ---------
------------------- ---------
6 400 9,376 TOTAL EQUITY AND LIABILITIES 70 273
------------------- ---------
income statement
for the year ended 30 June
2002 2003 2003 2002
Restated Restated
US$ m US$ m Rm R m
----------------------------------------------------------------------
5 882 7 148 Turnover 64 555 59 590
Cost of sales and services
(3 436) (4 356) rendered (39 347) (34 812)
----------------- -----------------------
2 446 2 792 Gross profit 25 208 24 778
122 67 Non-trading income 604 1 241
Marketing and distribution
( 422) ( 551) expenditure (4 977) (4 273)
( 407) ( 488) Administrative expenditure (4 407) (4 125)
( 335) ( 312) Other operating expenditure (2 809) (3 394)
----------------- -----------------------
Operating profit before
1 404 1 508 translation (losses)/gains 13 619 14 227
Translation (losses) /
55 ( 189) gains (1 708) 556
----------------- -----------------------
1 459 1 319 Operating profit 11 911 14 783
Dividends and interest
23 18 received 167 230
3 7 Income from associates 60 31
( 28) ( 25) Borrowing costs ( 225) ( 284)
----------------- -----------------------
1 457 1 319 Net income before tax 11 913 14 760
( 484) ( 444) Taxation (4 007) (4 905)
----------------- -----------------------
973 875 Net income after tax 7 906 9 855
( 4) ( 10) Minority interest ( 89) ( 38)
----------------- -----------------------
969 865 Attributable earnings 7 817 9 817
----------------- -----------------------
Basic earnings per share
(cents)
- attributable earnings
158 142 basis 1 283 1 603
158 142 - headline earnings basis 1 280 1 597
----------------- -----------------------
Diluted earnings per share
(cents)*
- attributable earnings
155 140 basis 1 262 1 571
154 139 - headline earnings basis 1 259 1 565
----------------- -----------------------
Dividends per share (cents)
20 27 - interim 215 200
24 31 & - final 235 250
----------------- -----------------------
44 58 450 450
----------------- -----------------------
*Taking the Sasol Share Incentive Scheme into account. &Subject to
exchange rate ruling on payment date The US dollar convenience
translation is calculated on a line by line basis in accordance with
International Accounting Standards.
changes in equity statement (abridged)
for the year ended 30 June
2003 2002
Restated
Rm Rm
----------------------------------------------------------------------
Opening balance 22 217
Effect of change in accounting policy 920
--------
Restated opening balance 31 315 23 137
Shares issued 77 76
Shares purchased ( 185) (1 020)
Attributable earnings 7 817 9 817
Dividends paid (2 835) (2 325)
(Decrease) / increase in foreign currency translation
reserve (2 570) 1 869
Increase in non-trading financial assets reserve - 2
(Decrease) / increase in cash flow hedge accounting
reserve ( 101) ( 241)
----------------
Closing balance 33 518 31 315
----------------
Comprising
Share capital 2 783 2 706
Share buyback programme (3 614) (3 429)
Accumulated earnings 35 041 30 059
Foreign currency translation reserve ( 352) 2 218
Non-trading financial assets reserve 2 2
Cash flow hedge accounting reserve ( 342) ( 241)
----------------
Total shareholders' equity 33 518 31 315
----------------
cash flow statement (abridged)
for the year ended 30 June
----------------------------------------------------------------------
2003 2002
Rm Rm
----------------------------------------------------------------------
Cash receipts from customers 64,496 60,049
Cash paid to suppliers and employees (48,499) (40,592)
-------- --------
Cash generated by operating activities 15,997 19,457
Investment income 178 247
Borrowing costs paid (1,286) (863)
Dividends paid (2,835) (2,325)
Tax paid (5,527) (4,749)
-----------------
Cash available from operating activities 6,527 11,767
-----------------
Additions to property, plant and equipment (10,272) (7,945)
Acquisition of businesses (155) (565)
Sasol Chemie purchase price reduction - 341
Cash acquired on acquisition of businesses 119 35
Other net expenditure in investing activities (413) (295)
-----------------
Cash utilised in investing activities (10,721) (8,429)
-----------------
Share capital issued 77 76
Share buyback programme (185) (1,020)
Dividends paid to minority shareholders (65) (76)
(Decrease) / increase in long-term loans 122 (2,457)
(Decrease) / increase in short-term loans 3,088 (962)
-----------------
Cash effect of financing activities 3,037 (4,439)
-----------------
(Decrease) / increase in cash and cash equivalents (1,157) (1,101)
Cash and cash equivalents
- opening balance 1,995 2,370
- arising on translation (255) 726
-----------------
Cash and cash equivalents 583 1,995
-----------------
Comprising
- cash 3,851 3,769
- bank overdraft (3,268) (1,774)
-----------------
583 1,995
-----------------
value added statement
for the year ended 30 June
2003 2002
Restated
Rm Rm
----------------------------------------------------------------------
Sales 64 555 59 590
Purchased materials and services (39 066) (32 820)
-----------------
Value added 25 489 26 770
Investment income 227 261
-----------------
Wealth created 25 716 27 031
-----------------
Employees 9 055 7 921
Providers of equity capital 2 924 2 363
Providers of loan capital 225 284
Government 3 651 4 669
Reinvested in the group 9 861 11 794
-----------------
Wealth distribution 25 716 27 031
-----------------
1999 2000 2001 2002 2003
----------------------------------------------------------------------
Turnover R
billion 19.2 25.8 40.8 59.6 64.6
----------------------------------------------------------------------
----------------------------------------------------------------------
Operating profit R
billion 3.7 6.3 10.6 14.8 11.9
----------------------------------------------------------------------
----------------------------------------------------------------------
Attributable earnings per share cents 409 620 1136 1603 1283
Dividend per share cents 151 220 320 450 450
----------------------------------------------------------------------
----------------------------------------------------------------------
Gearing % 0.9 5.6 28.2 25.1 33.2
----------------------------------------------------------------------
salient features
----------------------------------------------------------------------
2003 2002
----------------------------------------------------------------------
Selected ratios
Return on equity % 24.1 36.1
Return on total assets % 17.8 25.7
Operating margin % 18.5 24.8
Borrowing cost cover times 9.4 17.4
Dividend cover times 2.9 3.5
----------------------------------------------------------------------
Share statistics
Total shares in issue million 668.8 666.9
Treasury shares (share buyback programme) million 59.7 57.9
Weighted average number of shares million 609.3 612.5
Fully diluted number of shares million 619.6 625.0
Share price (closing) cents 8,355 11,000
Market capitalisation R m 55,878 73,359
Net asset value per share cents 5,503 5,142
----------------------------------------------------------------------
Other financial information
Total debt (incuding bank overdraft)
- interest bearing R m 14,289 10,579
- non-interest bearing R m 41 96
Capital commitments
- authorised and contracted R m 9,562 7,430
- authorised, not yet contracted R m 8,510 16,632
Guarantees and contingent liabilities R m 18,358 10,114
Significant items in operating profit
- employee costs R m 9,055 7,921
- depreciation of property, plant and R m
equipment 4,468 4,221
- operating lease charges R m 378 369
Directors' remuneration R m 29 23
Share options granted to directors -
cumulative '000 1,450 1,508
Effective tax rate % 33.6 33.2
Number of employees number 31,150 31,100
Average crude oil price - Dated Brent USD/bbl 27.83 23.24
----------------------------------------------------------------------
Reconciliation of headline earnings
Attributable earnings 7,817 9,817
Impairment of assets 83 145
Loss on disposal of assets 90 46
Scrapping of property, plant and equipment 69 52
Amortisation of goodwill 42 33
Amortisation of negative goodwill (301) (282)
Tax effect on reconciling items (2) (30)
---------------
Headline earnings 7,798 9,781
---------------
----------------------------------------------------------------------
The reader is referred to the definitions contained in the 2003 annual
financial statements.
business unit & geographic analysis
2002 2003 2003 2002
----------------------------------------------------------------------
Turnover Business unit Operating profit
R R
billion billion
----------------------------------------------------------------------
1,239 1,013 Sasol Mining 1,277 1,335
12,620 13,643 Sasol Synfuels 8,048 8,030
6,414 8,507 Sasol Oil and Gas 1,223 2,021
39,023 41,030 Sasol's chemicals 2,240 3,676
------------------ ----------------------------------
19,129 19,543 Sasol O&S 67 1,207
5,580 6,245 Sasol Polymers 890 913
5,666 5,950 Sasol Solvents 436 786
3,840 4,663 Sasol Wax 233 175
3,984 3,810 Sasol Nitro 414 535
824 819 Other chemicals 200 60
------------------ ----------------------------------
294 362 Other (635) (36)
------------------ ----------------------------------
59,590 64,555 12,153 15,026
------------------
Capital items (242) (243)
----------------------------------
11,911 14,783
----------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Turnover Geographic analysis Operating profit
R R
billion billion
----------------------------------------------------------------------
26,735 31,136 South Africa 10,896 12,115
2,079 1,959 Rest of Africa 15 12
16,390 17,149 Europe 781 1,491
Middle East, India, Far
3,208 3,710 East 453 510
9,514 8,809 North America (229) 528
675 697 South America 7 63
989 1,095 Southeast Asia (12) 64
------------------ ---------------------------
59,590 64,555 11,911 14,783
------------------ ---------------------------
--30--VP/ny*
CONTACT: Sasol
Investor Relations:
Cavan Hill, +27 11 441 3563
cavan.hill@sasol.com
Enrico Ganter, +44 7979 517 192
enrico.ganter@sasol.com
Brian MacKinnon, +27 11 441 3321
brian.mackinnon@sasol.com
www.sasol.com
sasolir@sasol.com
or
Taylor Rafferty
Investor Relations
Brian Rafferty, +212 889 4350
sasol@taylor-rafferty.com
or
Absa Corporate and Merchant Bank
Liezl Squier, 011-350-4291 or Cell : 083 407 6898
liezls@absa.co.za
or
Nedbank Media Relations and Publicity
Gayle Rodrigues, 011-294- 0372 or Cell : 083 307 6484
gayler@nedcor.com
KEYWORD: SOUTH AFRICA INTERNATIONAL AFRICA/MIDDLE EAST
INDUSTRY KEYWORD: CHEMICALS/PLASTICS ENERGY OIL/GAS EARNINGS
SOURCE: Sasol
COPYRIGHT 2003 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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