Sasol's attributable earnings per share for the year ended 30 June 2008 are estimated to increase by between 40% and 50% on the comparable previous reporting period with headline earnings per share increasing between 50% and 60%.

 

The increase over the guidance given at the time of the announcement of our interim results on 10 March 2008 of 'good growth compared with the 2007 financial year' is due to the weakening of the rand against the US dollar, an increase in crude oil and product prices from the time of the announcement of the interim results and an improvement in the overall production rate. However, Synfuels volumes, while still envisaged to be higher than the prior year, are expected to be lower than previously foreseen.

 

As pointed out in March, the earnings guidance does not take into account the non-cash charges which will result from the Sasol Inzalo BEE transaction. As set out in the circular dated 24 April 2008, this transaction will be presented to shareholders for approval at a general meeting scheduled for 16 May 2008. Due to the closing date for the Black Public invitations being extended to 5 July 2008, a large portion of the non-cash charges, previously expected to have impacted the current year's earnings, will now impact Sasol's financial year 2009 earnings.

 

Several assumptions have been made in estimating the expected earnings increase. These assumptions are based on the best information currently available, and will be clarified and reviewed over the remainder of the financial year, and may result in a change in the estimated earnings. In particular, we reported that a material increase in capital expenditure is expected in respect of the construction of the gas-to-liquids plant at Escravos in Nigeria in which Sasol has a 37,5% economic interest. Recent estimates indicate an increase of the capital cost of the project to approximately US$6 billion and a project completion date of 2011. However, a review of the increased capital expenditure as well as changes to other factors that impact the project economics have not yet been completed. The outcome of this review could have an impact on this earnings guidance.

 

As previously disclosed, it is reasonably possible that the European Commission will impose a fine on members of the European paraffin wax industry including Sasol Wax for collective anti-competitive behaviour. If such a fine is imposed in the current financial year it could have an impact on this earnings guidance. As indicated in the past, it is not possible to reliably estimate the quantum of the fine at this stage.

 

Sasol's financial results for the year ended 30 June 2008 will be announced on Monday, 8 September 2008.

 

The above information has not been reviewed and reported on by the Company's auditors.

 

Johannesburg 

13 May 2008

 

Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited