Sasol Limited financial results for the six months ended 31 December 2014 JSE: SOL NYSE: SSL
Introduction David E Constable President and Chief Executive Officer
What you will hear today Key messages Solid platform underpinned by an optimised operating model Strong group-wide performance Business Performance Enhancement Programme delivering results Maintaining momentum through challenging…
Solid platform underpinned by an optimised operating model Operating model gaining traction and delivering results Operating model structured along an integrated value chain Enables: Greater focus and increased simplicity An…
Strong group-wide performance Solid contributions across the value chain Resilient group-wide operational performance Group safety RCR, excluding illnesses, improved to 0,32 Performance Chemicals sales volumes up by 5% Base…
Business Performance Enhancement Programme Delivering results Organisational redesign fully implemented Approximately 1 500 voluntary separations Group-wide vacancy freeze and hiring moratorium deliver results Increased target of at…
Maintaining momentum through challenging times Current market sentiment supports lower-for-longer oil scenario Brent crude consensus forecasts (real) External experts expect the low oil price to persist until mid-2016 120 Annual…
Response Plan launched Implementing a comprehensive and flexible plan to conserve cash Aiming to conserve R30 billion to R50 billion in cash up to end FY17 Safe, reliable and efficient operations remain non-negotiable Response Plan…
Response Plan launched Cash conservation levers Comprehensive 30-month Targeted range (Rbn) Response Plan actioned to deliver: Cash cost R4bn R7bn: further cash cost savings savings R5bn R9bn: gross margin and Gross margin &…
Financial and operational performance Paul Victor Group Financial Controller
Challenging macro environment contained through resilient chemical prices Significant drop in oil price Weakening currency Brent Product price Henry Hub US/bbl US1 = Rand /mmbtu (gas price) 124 105 R10,99 110 R10,08 89…
Group profitability Strong group-wide performance supported by effective cost management HY15 HY14 % Performance and Base Chemicals sales Mining 2 241 1 351 66 volumes up 5% and 1% 72 3% increase in liquid fuels sales volumes…
Profit from operations positively impacted by once-off items and half year-end adjustments Macro Costs and environment volumes 35 000 Rand million 54% 13% 6% 30,034 30 000 25 000 12% 20% HY15 sales 21,534 volumes up 6%…
Cash fixed costs Normalised costs 0,7% below South African PPI Costs and Restructuring Macro volumes and growth environment cost 25 000 Rand million (6,8%) (1,5%) 22 435 (6,9%) 19 993 2,3% 0,7% 19 396 20 000 15 000…
Mining and EPI Operating Business Units Mining delivers increased production with controlled unit cost increase Profit / (loss) from operations (Rm) HY15 HY14 % Mining Mining 2 241 1 351 66 Production volumes increased by 5% EPI (1 748)…
Energy Strategic Business Unit Energy operations strong but margins impacted Profit from operations (Rm) HY15 HY14 % Energy Energy 14 818 16 374 10 Secunda Synfuels and Natref increased Southern Africa2 13 520 14 471 7 production by…
Chemicals Strategic Business Units Improved sales volumes and resilient margins Profit from operations (Rm) HY15 HY14 % Base Chemicals Base Chemicals 5 818 4 107 42 Sales volumes normalised increased by 1% Performance Chemicals 7 365…
Business Performance Enhancement Programme Savings target increased to at least R4,3 billion at end FY16 Cost trend from end FY16 to follow inflation Rand million Sustainable cost reduction Achieve an exit run-rate of at least…
Dividend cover Change in dividend policy to cover range Interim dividend of R7,00 per share, 60 3.0 down 13% Rand per share Dividend cover Dividend corridor Dividend corridor range between 50 2.5 2,2 and 2,8 Objective to…
Capital portfolio reprioritised Capital spend forecast Due to rand Response Plan contributions of 80 weakening R13bn R22bn Rand billion Portfolio reassessed and optimised 60 Safe, reliable operations to be maintained…
FY15 outlook Strong production performance and cost reductions to continue South African liquid fuels sales volumes expected to be around 59 million barrels Average utilisation of ORYX GTL is expected to continue above 90% Chemical…
Dual regional strategy David E Constable President and Chief Executive Officer
Lake Charles Chemicals Project making good progress Maintaining focus Final investment decision for US8,9 billion project announced on 27 October 2014 US4 billion credit facility from a syndicate of banks completed in December 2014…
Continuing to stimulate Southern Africas regional growth Our broader contributions Electricity self-generation capacity of over 1 100MW, taking pressure off the national grid Beneficiating approximately 40 million tons of coal…
Prioritising business activities given the current global realities Maintaining momentum through challenging times Enhancing Driving selective growth Value creation existing asset base opportunities Operations delivering Lake…
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