JOHANNESBURG, December 8, 2016 /PRNewswire/ --
Sasol has a board-approved policy with
respect to hedging of financial risks, which allows the company to
mitigate specific risks and provide protection against unforeseen
movements in interest rates, currency movements, commodity and
final product prices.
During the course of the 2017 financial
year, Sasol has entered into a number of hedges to mitigate
specific financial risks. In particular, we have entered into
hedges against the downside risk in the crude oil price to increase
the stability and predictability of our cash flows.
Sasol has entered into oil put options,
for the second quarter of the financial year ending 30 June 2017 (October
2016 to December 2016), which
provide the Company with an average Brent crude oil price floor of
US$48,68 per barrel (net of costs)
for approximately 7,6 million barrels. Sasol has also entered into
put options for quarter three and a part of quarter four of
financial year 2017 which provide the Company with an average Brent
crude oil price floor of US$47,06 per
barrel (net of costs) for approximately 16,8 million barrels.
We are currently reviewing other
commodity and currency hedges and should we enter into material
hedges, an appropriate announcement will be made.
Contacts:
Cavan Hill
Senior Vice President: Investor Relations
Sasol limited
+27-0-1-344-7950
SOURCE Sasol Limited