Sasol Limited: Solid Performance Off High Base.Business Editors JOHANNESBURG Johannesburg (jōhăn`ĭsbörg', yōhä`nəsbörkh'), city (1991 pop. 1,574,631), Gauteng, NE South Africa, on the southern slopes of the Witwatersrand at an altitude of 5,750 ft (1,753 m). , South Africa--(BUSINESS WIRE)--March 10, 2003 -- operating profit before translation effects up 35% -- world acclaim for Sasol's high-achiever mines -- Gas-to-liquid (GTL) projects advance -- world-scale alcohols plant successfully commissioned -- New York Stock Exchange Listing -- Sasol's corporate credit rating upgraded Consolidated interim results of Sasol Sasol (originally Suid Afrikaanse Steenkool en Olie - South African Coal and Oil) is a South African company involved in mining, energy, chemicals and synfuels. In particular, they produce petrol and diesel profitably from coal and natural gas using Fischer-Tropsch Limited and declaration of dividend number 47 for the half-year ended 31 December December: see month. 2002 reviewed by the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Financial Overview Following the Sasol Group's surging financial performances over the last three years, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the six-month interim period ended 31 December 2002 increased by a modest 4% to R7,3 billion (decreased 4% to US$728 million), compared to the result of the same reporting period in the previous year. Attributable earnings of R4,6 billion were almost equal to, and basic earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) of 751 cents, were slightly above those achieved in the previous reporting period. In US$ terms, attributable earnings decreased by 8% to US$456 million and EPS by 6% to 75 cents. Basic headline earnings Headline Earnings A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any per share increased by 3% to 752 cents (decreased by 5% to US75 cents). Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges of R203 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the explosives facility at Brandon Brandon, city, Canada Brandon, city (1991 pop. 38,567), SW Man., Canada, on the Assiniboine River. The business center of the wheat-raising area of SW Manitoba, Brandon has an extensive trade in farm products and machinery. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , and investments within Sasol Wax International were largely offset by R88 million profit after tax on the disposal of sundry sun·dry adj. Various; miscellaneous: a purse containing keys, wallet, and sundry items. [Middle English sundri, from Old English syndrig, separate. assets and (net) negative goodwill amortised of R110 million. Derived crude oil prices averaged US$22,35 and were 2% lower than in the previous reporting period. Pervasive pervasive, adj indicates that a condition permeates the entire development of the individual. global political and economic uncertainty adversely impacted on petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. markets. Margins, particularly in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , came under pressure and dropped
significantly. The detrimental det·ri·men·tal adj. Causing damage or harm; injurious. det  ri·men effects of these conditions affected
particularly the Olefins and Surfactants business.The rand/US$ exchange rate weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. by 8% from an average of R9,29
in the comparable reporting period to R10,03 in this reporting period.
While the weaker rate had a beneficial effect on sales, the closing rate
on 31 December 2002 of R8,57 was much stronger than the closing rate of
preceding months and 28% stronger than the closing rate of R11,95 on 31
December 2001. This resulted in net translation losses of R974 million
being charged to the income statement as a result of the revaluation RevaluationA calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of financial assets Financial assets Claims on real assets. and liabilities at 31 December 2002. This compares to net translation gains in the previous reporting period of R922 million. This represents a swing of R1,9 billion in the operating results of the group. Before taking these translation effects into account, operating profit increased by 35% from R6,1 billion to R8,3 billion (by 25% to US$825 million) for the six months ended 31 December 2002, compared to the results of the same reporting period in the previous year. Financing costs rose by 23% to R529 million, mainly as a result of higher capital expenditure, which increased from R3,6 billion to R5,7 billion during the comparable periods. Financing cost cover remained satisfactory at 14 times. The increase in capital expenditure arose primarily from the Mozambique Mozambique, city, Mozambique Mozambique, city: see Moçambique. Mozambique, country, Africa Mozambique (mō'zəmbēk`), officially Republic of Mozambique, republic (2005 est. pop. natural gas project, the Qatari and Nigerian gas-to-liquid (GTL GTL - Gunning Transceiver Logic ) projects and the n-Butanol and acrylic acid acrylic acid /acryl·ic ac·id/ a readily polymerizing liquid used as a monomer for acrylic polymers. projects at Sasolburg. Capital commitments at 31 December 2002 amounted to R18,7 billion. Previous plans for a major chemical business acquisition have been shelved as the Group concentrates its resources on advancing capital projects that are focused strategically on beneficiating highly competitive feedstocks and linking the Group's proprietary technology to low-cost hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen reserves at various locations around the world. The share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may programme continued, taking cognisance COGNISANCE, pleading. Where the defendant in an action of replevin (not being entitled to the distress or goods which are the subject of the replevin) acknowledges the taking of the distress, and insists that such taking was legal, not because he himself had a right to distrain on his own of Sasol's cash position. At 31 December 2002, 8,8% (58,9 million shares) of Sasol issued share capital had been purchased at an average price of R60 per share. Gearing, defined as interest-bearing debt less cash as a percentage of total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , was 32% at 31 December 2002. Notwithstanding the Group's exciting and aggressive growth programme, this was comfortably within the target range of 20% to 40%. During the reporting period Sasol's corporate credit rating on long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. foreign currency was upgraded by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index to BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. , which was above South Africa's sovereign rating. An interim dividend of 215 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. has been declared. This represents an increase of 7,5% over the previous interim declaration. Sasol Mining Following its spectacular profit increases in recent years, Sasol Mining increased operating profit (including capital gains of R6 million) by 10% to R708 million. Productivity improvement processes continued with vigour. It is most gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that this business was recently recognised at The Platts-Business Week Global Energy Awards in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of as the global coal company of the year for 2002. Sasol Synfuels Sasol Synfuels increased its operating profit by a pleasing 36% from R3 688 million to R5 023 million. While the business benefited from the weaker rand/US$ exchange rate, ongoing productivity improvement initiatives and better conversion efficiencies and yields also made a meaningful contribution. Monthly records for the production of pure synthesis gas synthesis gas n. A mixture of gases made as feedstock, especially a fuel produced by controlled combustion of coal in the presence of water vapor. were achieved in August and December 2002, and total production per day during the reporting period reached an all-time high. Sasol Chemical Industries (SCI (Scalable Coherent Interface) An IEEE standard for a high-speed bus that uses wire or fiber-optic cable. It can transfer data up to 1GBytes/sec. (hardware) SCI - 1. Scalable Coherent Interface. 2. UART. ) Generally, businesses within SCI experienced difficult trading conditions with some of them being exposed to severe margin pressures because of intense competition and higher energy-related feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing costs. Before the impact of translation effects, SCI's operating profit increased by 43% from R1 330 million to R1 898 million. Because this division carried a large portion of Sasol's translation losses, its consolidated operating profit after translation effects decreased by 27% to R1 381 million (including capital losses of R201 million). A highlight was the performance of Sasol Polymers, which increased operating profit by 91% to R434 million. Sasol Solvents maintained trading margins but was substantially impacted by translation effects. Sasol Olefins and Surfactants was adversely affected by prevailing cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. market conditions and substantial margin pressure in its alkylates business, resulting in a material profit reduction. Despite arduous ar·du·ous adj. 1. Demanding great effort or labor; difficult: "the arduous work of preparing a Dictionary of the English Language" Thomas Macaulay. 2. conditions, it is noteworthy that most businesses retained or improved their customer service standards and achieved pleasing progress in terms of quality accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. and safety performance. They are all poised to deliver more substantially once trading conditions improve and commodity chemical prices and margins recover. Sasol Oil and Sasol Gas Sasol Oil's results were disappointing. Operating profit (including capital gains of R84 million) decreased by 39% to R565 million. The main reasons for this reduction were lower production at the Natref refinery as a result of a planned shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down (R200 million) and unforeseen problems and delays experienced with the refinery expansion project (R200 million). Close scrutiny of circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or during the execution of this complex expansion project highlighted role clarification and competency COMPETENCY, evidence. The legal fitness or ability of a witness to be heard on the trial of a cause. This term is also applied to written or other evidence which may be legally given on such trial, as, depositions, letters, account-books, and the like. 2. shortcomings A shortcoming is a character flaw. Shortcomings may also be:
Sasol Gas performed according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. expectations. National pipeline gas sales volumes were about 11% higher than those of the previous reporting period and profit targets were met. Profit Outlook Widespread uncertainty in global markets has been exacerbated by looming looming: see mirage. war in the Middle East and most of the world's major economies have slowed. Predicting oil and petrochemical prices with confidence in these circumstances is challenging and perhaps imprudent im·pru·dent adj. Unwise or indiscreet; not prudent. im·pru dent·ly adv. .
At the same time, the unexpected further strengthening of the rand to
levels last experienced prior to the calamitous ca·lam·i·tous adj. Causing or involving calamity; disastrous. ca·lam i·tous·ly adv. events of 11 September
2001, makes currency forecasting equally complex. This is evidenced by
the disparate views offered by pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae economists from reputable rep·u·ta·ble adj. Having a good reputation; honorable. rep u·ta·bil institutions whose forecasts of the rand/US$ exchange rate vary
significantly.In these depressed and volatile trading circumstances, it is likely that attributable earnings for the full financial year ending 30 June 2003 will be less than those of the previous financial year. This forecast should be viewed in the context of the highly efficient and value-adding base of financial 2002, which, for the third successive year, was a commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. record performance. Based on current views of oil prices and currencies, it is anticipated that the total dividend for the year will be the same as in the previous financial year. The group remains poised for long-term growth. New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. Listing It is also announced today that Sasol Limited has filed a registration statement on Form 20F with the Securities and Exchange Commission (SEC). This registration statement has been declared effective by the SEC. Sasol Limited will therefore comply with the ongoing filing requirements of the SEC from this point. Sasol Limited intends to list on the New York Stock Exchange on 9 April 2003. Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. The Group subscribes to, affirms its commitment to and complies, in all material respects with the code on Corporate Practices and Conduct as contained in the second King Report on Corporate Governance for South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Strong corporate governance structures and mechanisms are in place at Sasol and are constantly being reviewed to reflect internal corporate changes, legislative changes and national and international developments in relation to corporate governance. 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 Interim Dividend Number 47 The directors of Sasol Limited have declared an interim dividend of 215 cents per share (2001: 200 cents per share) for the half-year to 31 December 2002. The dividend has been declared in the currency of the Republic of South Africa. Trading in the STRATE STRATE Share Trading Transactions Totally Electronic (Johannesburg Stock Exchange) environment requires settlement within five business days. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the settlement procedures of STRATE, the following dates will apply to the interim dividend: Last day for trading to qualify for and participate in the interim dividend (cum dividend) Friday, 4 April 2003 Trading ex dividend commences Monday, 7 April 2003 Record date Friday, 11 April 2003 Dividend payment date (electronic and certificated register) Monday, 14 April 2003 Dividend cheques in payment of this dividend to certificated shareholders will be posted to shareholders on or about Monday, 14 April 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 In India, a depository participant is a market intermediary between the depository (generally NSDL) and investors. References
In the case of certificated shareholders, notice of any change of address of shareholders must reach the transfer secretaries, Computershare Investor Services Limited, on or before Friday, 4 April 2003. Share certificates may not be dematerialised or rematerialised between Monday, 7 April 2003 and Friday, 11 April 2003, both days inclusive. By order of the board P du P Kruger P V Cox Chairman Deputy chairman and chief executive Sasol Limited 10 March 2003 TRANSFER SECRETARIES: Computershare Investor Services Limited PO Box 61051 Marshalltown 2107 70 Marshall Street Marshall Street is located on University Hill in Syracuse, New York adjacent to Syracuse University, whose students gave it the name M-Street. Many shops, restaurants, and bars line this street and its terminus South Crouse Avenue. Johannesburg 2001 Contact persons for Sasol: Cavan Hill, Investor Relations Investor relations The process by which the corporation communicates with its investors. Manager Tel: +27 11 441 3563 / Fax: +27 11 441 3481 Email: cavan.hill@sasol.com Brian MacKinnon For other uses, see Brian MacKinnon (disambiguation). Brian MacKinnon (born 4 June 1963) is a Scotsman who posed as teenager Brandon Lee to get back into medical school. , Manager Financial Information and Communication Tel: +27 11 441 3321 Email: brian.mackinnon@sasol.com Enrico Ganter, Investor Relations Manager Tel: +44 1564 783 060 / Fax: +44 1564 785 360 Email: enrico.ganter@sasol.com Notes to the Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Interim Financial Statements A billion is defined as one thousand million. The principal reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. of the Group is rand. US$ figures are presented for convenience purposes only and are translated on a line by line basis in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). .
Principal foreign currency conversion rates
----------------------------------------------------------------------
Half-year Half-year Year
December 2002 December 2001 June 2002
----------------------------------------------------------------------
Rand/USD (closing) 8,57 11,95 10,27
Rand/USD (average) 10,03 9,29 10,13
Rand/euro (closing) 9,00 10,63 10,19
Rand/euro (average) 9,95 8,31 9,08
Basis of Preparation The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards and in particular with the provisions of IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 34 "Interim Financial Reporting", the requirements of the South African Companies This is a list of companies in South Africa. Accounting
v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and the Listing Requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. of the JSE JSE See: Johannesburg Stock Exchange Securities Exchange South Africa. The policies adopted are consistent with those applied in the annual financial statements for the year ended 30 June 2002. These interim results should be read in conjunction with the 2002 annual financial statements. These condensed consolidated interim financial statements have been prepared in accordance with the historic cost convention except for certain financial instruments which are stated at fair value. Comparative amounts have been restated where necessary to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" current period presentation and to allow for a more meaningful comparison of performance. 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. Figures presented in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars are presented for convenience purposes only. Related Party Transactions During the period under review the company and its subsidiaries, 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. Independent review by the Auditors The Group's condensed consolidated interim financial statements at 31 December 2002 and for the six months then ended have been reviewed by our auditors, KPMG Inc., who have performed their review in accordance with the statement of South African Auditing Standards applicable to review engagements. The scope of their review was to enable the auditors to report that nothing came to their attention that caused them to believe that the accompanying condensed consolidated interim financial statements are not fairly presented, in all material respects, in accordance with International Financial Reporting Standards applicable to Interim Financial Reporting and the South African Companies Act. KPMG Inc.'s unmodified Adj. 1. unmodified - not changed in form or character unqualified - not limited or restricted; "an unqualified denial" modified - changed in form or character; "their modified stand made the issue more acceptable"; "the performance of the modified aircraft review report on the condensed consolidated interim financial statements is available for inspection at the registered office of the company.
balance sheet
30 June 31 Dec 31 Dec 31 Dec 31 Dec 30 June
2002 2001 2002 2002 2001 2002
USDm USDm USDm Rm Rm Rm
----------------------------------------------------------------------
ASSETS
Property, plant and
3 570 2 842 4 461 equipment 38 231 33 960 36 667
Goodwill and negative
( 51) ( 62) ( 43) goodwill ( 365) ( 737) ( 518)
180 120 220 Intangible assets 1 886 1 429 1 852
226 170 254 Other long-term assets 2 172 2 029 2 327
---------------------- -----------------------
3 925 3 070 4 892 Non-current assets 41 924 36 681 40 328
---------------------- -----------------------
878 751 1,096 Inventories 9 392 8 972 9 013
Trade and other
1 024 1 007 1,151 receivables 9 869 12 041 10 515
Short-term financial
23 51 8 assets 68 609 232
367 278 375 Cash 3 215 3 323 3 769
---------------------- -----------------------
2 292 2 087 2,630 Current assets 22 544 24 945 23 529
---------------------- -----------------------
---------------------- -----------------------
6 217 5 157 7,522 TOTAL ASSETS 64 468 61 626 63 857
---------------------- -----------------------
EQUITY AND LIABILITIES
Total shareholders'
2 928 2 373 3,726 equity 31 931 28 363 30 070
---------------------- -----------------------
25 13 30 Minority interest 255 156 262
---------------------- -----------------------
529 555 567 Long-term loans 4 859 6 622 5 427
552 492 619 Long-term provisions 5 309 5 882 5 670
Long-term deferred
6 - 12 income 105 - 65
531 424 594 Deferred tax 5 089 5 063 5 444
---------------------- -----------------------
Non-current
1 618 1 471 1,792 liabilities 15 362 17 567 16 606
---------------------- -----------------------
338 431 700 Short-term loans 6 003 5 154 3 474
Other current
1 135 869 983 liabilities 8 421 10 386 11 671
173 - 291 Bank overdraft 2 496 - 1 774
---------------------- -----------------------
1 646 1 300 1,974 Current liabilities 16 920 15 540 16 919
---------------------- -----------------------
---------------------- -----------------------
TOTAL EQUITY AND
6 217 5 157 7,522 LIABILITIES 64 468 61 626 63 857
---------------------- -----------------------
income statement
half- half- half- half-
year year year year year year
June December December December December June
2002 2001 2002 2002 2001 2002
USDm USDm USDm Rm Rm Rm
----------------------------------------------------------------------
6 078 2 997 3 392 Sales 34 015 27 863 61 578
(3 621) (1 829) (1 960) Cost of sales (19 657) (16 994) (36 688)
---------------------------- --------------------------
2 457 1 168 1 432 Gross profit 14 358 10 869 24 890
Operating
(1 042) ( 509) ( 607) expenses (6 079) (4 744) (10 551)
---------------------------- --------------------------
Operating
profit before
translation
1 415 659 825 effects 8 279 6 125 14 339
Translation
(losses) /
55 99 ( 97) gains ( 974) 922 556
---------------------------- --------------------------
Operating
1 470 758 728 profit 7 305 7 047 14 895
Dividends and
interest
23 13 9 received 93 119 230
Income from
3 3 3 associates 30 27 31
( 85) ( 46) ( 53) Finance costs ( 529) ( 430) ( 863)
---------------------------- --------------------------
Net income
1 411 728 687 before tax 6 899 6 763 14 293
( 471) ( 231) ( 223) Taxation (2 241) (2 144) (4 769)
---------------------------- --------------------------
Net income
940 497 464 after tax 4 658 4 619 9 524
Minority
( 3) ( 3) ( 8) interest ( 82) ( 24) ( 28)
---------------------------- --------------------------
Attributable
937 494 456 earnings 4 576 4 595 9 496
---------------------------- --------------------------
Goodwill
3 1 1 amortised 13 11 33
Negative
goodwill
( 28) ( 13) ( 12) amortised ( 123) ( 119) ( 282)
--------
Impairment of
24 - 21 assets 203 - 240
(Profit)/loss
on disposal
- - ( 9) of assets ( 90) - ( 4)
Tax effect
( 3) - - thereon 2 - ( 28)
---------------------------- --------------------------
Headline
933 482 457 earnings 4 581 4 487 9 455
---------------------------- --------------------------
Basic earnings
per share
(cents)
-attributable
earnings
153 80 75 basis 751 748 1 550
- headline
earnings
152 79 75 basis 752 731 1 544
---------------------------- --------------------------
Diluted
earnings per
share (cents)
-attributable
earnings
150 79 74 basis 738 737 1 519
- headline
earnings
149 77 74 basis 739 720 1 513
---------------------------- --------------------------
Dividends per
share (cents)
20 20 25 - interim 215 200 200
24 - final 250
---------------------------- --------------------------
Dividends are translated at actual rates on date of payment. The
current year is an indicative rate only.
changes in equity statement
half-year half-year year
December December June
2002 2001 2002
Rm Rm Rm
----------------------------------------------------------------------
Balance at beginning 30 070 22 217 22 217
Shares issued 57 37 76
Shares purchased ( 112) ( 567) (1 020)
Attributable earnings 4 576 4 595 9 496
Dividends paid (1 524) (1 101) (2 325)
(Decrease) / increase in foreign currency
translation reserve (1 135) 2 636 1 865
Increase in non-trading financial assets
reserve - - 2
(Decrease) / increase in cash flow hedge
accounting reserve ( 1) 546 ( 241)
-------------------------
Balance at end of year 31 931 28 363 30 070
-------------------------
Comprising
Share capital 2 763 2 667 2 706
Share buyback programme (3 541) (2 976) (3 429)
Accumulated profit 31 869 25 140 28 817
Foreign currency translation reserve 1 080 2 986 2 215
Non-trading financial assets reserve 2 - 2
Cash flow hedge accounting reserve ( 242) 546 ( 241)
-------------------------
Total shareholders' equity 31 931 28 363 30 070
-------------------------
cash flow statement
half-year half-year year
December December June
2002 2001 2002
Rm Rm Rm
----------------------------------------------------------------------
Cash flow from operations 9 139 9 150 19 157
Investment income 103 129 247
(Increase) / Decrease in working capital (1 303) ( 932) 300
Finance costs paid ( 529) ( 430) ( 863)
Tax paid (4 164) (3 178) (4 749)
Dividends paid (1 524) (1 101) (2 325)
--------- --------- -------
Cash retained from operating activities 1 722 3 638 11 767
--------- --------- -------
Cash utilised in investing activities (6 215) (2 370) (8 344)
--------- --------- -------
Cash effect of financing activities 3 629 (1 247) (4 524)
--------- --------- -------
(Decrease)/increase in cash ( 864) 21 (1 101)
Cash at beginning of period 1 995 2 370 2 370
Arising on translation ( 412) 932 726
--------- --------- -------
Cash at end of period 719 3 323 1 995
--------- --------- -------
Comprising
Cash 3 215 3 323 3 769
Bank overdraft (2 496) - (1 774)
--------- --------- -------
719 3,323 1 995
--------- --------- -------
statement of value added
year half-year half-year half-year half-year year
June December December December December June
2002 2001 2002 2002 2001 2002
USDm USDm USDm Rm Rm Rm
------------------------------------------------------------- --------
6 078 2 997 3 392 Sales 34 015 27 863 61 578
Purchased
materials and
(3 436) (1 656) (2 024) services (20 295) (15 382) (34 801)
----------------------------- --------------------------
2 642 1 341 1 368 Value added 13 720 12 481 26 777
Investment
26 16 12 income 123 146 261
----------------------------- --------------------------
Wealth
2 668 1 357 1 380 created 13 843 12 627 27 038
----------------------------- --------------------------
782 391 443 Employees 4 447 3 632 7 921
Providers of
equity
229 121 160 capital 1 606 1 125 2 353
Providers of
85 46 53 loan capital 529 430 863
461 273 228 Government 2 285 2 544 4 669
Reinvested in
1 111 526 496 the Group 4 976 4 896 11 232
----------------------------- --------------------------
Wealth
2 668 1 357 1 380 distribution 13 843 12 627 27 038
----------------------------- --------------------------
supplementary information
half-year half-year year
December December June
2002 2001 2002
---------------------------------------------------------------------
Selected ratios
Return on equity % 15.2 19.2 36.3
Return on total assets % 11.8 15.3 26.6
Operating profit to sales % 17.9 17.0 17.1
Financing cost cover times 14.0 16.7 17.6
Dividend cover times 3.5 3.7 3.4
Share statistics
Total shares in issue million 668.2 665.9 666.9
Net shares in issue million 609.3 611.8 609.0
Weighted average number of million
shares 609.3 614.2 612.5
Fully diluted number of shares million 620.3 623.3 625.0
Share price (closing) cents 10 500 10 540 11 000
Market capitalisation Rm 70 161 70 186 73 356
Net asset value per share cents 5 241 4 618 4 938
Other financial information
Loans (including bank
overdraft)
- interest bearing Rm 13 310 11 766 10 612
- non-interest bearing Rm 48 10 63
Capital commitments
- authorised and contracted Rm 7 204 8 256 7 430
- authorised, not yet
contracted Rm 11 496 5 240 16 632
Guarantees and contingent
liabilities Rm 11 116 9 936 10 114
Significant items in operating
profit
- employee costs Rm 4 447 3 632 7 921
- depreciation of property,
plant and equipment Rm 1 968 1 986 4 117
- operating lease charges Rm 231 194 369
Effective tax rate % 32.5 31.7 33.4
Number of employees 31 100 30 250 31 100
Average crude oil price - Brent USD/bbl 22.35 22.84 23.24
The reader is referred to the definitions contained in the 2002
annual financial statements.
Principal foreign currency conversion rates
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Half-year Half-year Year
December December June
2002 2001 2002
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Rand/USD (closing) 8.57 11.95 10.27
Rand/USD (average) 10.03 9.29 10.13
Rand/euro (closing) 9.00 10.63 10.19
Rand/euro (average) 9.95 8.31 9.08
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