Sasol Limited · JSE:SOL
Sasol — Nedbank Capital Investment Conference 2010
23 slides from Sasol's conference presentation, Sep 22, 2010
Slide 1: The case for growth
Nedbank Capital Investment Conference Spier Wine Estate, Stellenbosch 22 September 2010 Sasol Limited The case for growth Lean Strauss Senior Group Executive: New Business Development and Technology
Slide 2: Forward-looking statements
forward-looking statements In this document we make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, de
Slide 3: Agenda
agenda Sasol overview Macro fundamentals supporting growth Growth projects (exploration and GTL) Conclusion 3
Slide 4: Sasol is the world's largest producer of synthetic fuels
Sasol is the world’s largest producer of synthetic fuels An integrated energy and chemicals company Pioneer in gas-to-liquids (GTL) and coal-to-liquids (CTL) technology 60 year experience in FT technology secures IP and operating competitive advantage Strong intellectual property portfolio (372 regi
Slide 5: Solid financial position ensures robust returns to shareholders
solid financial position ensures robust returns to shareholders Progressive dividend growth Operating profit R24 billion EPS R26,68 HEPS R26,57 Turnover R122 billion Market capitalisation ~US$ 27 bn Gearing 1% Dividend yield 3,5% Listed NYSE/JSE Commitment to total shareholder return 5
Slide 6: Sasol's long-term strategy leveraging growth opportunities
Sasol's long-term strategy leveraging growth opportunities Definition of Foundation Growth Victory Accelerate Develop and GTL, focused CTL Operations empower our growth excellence people Grow related Group imperatives upstream business Functional Grow excellence Continuously Grow technological stake
Slide 7: Macro fundamentals supporting growth
Macro fundamentals supporting growth
Slide 8: Sasol offers an alternative solution to meet global energy demands
Sasol offers an alternative solution to meet global energy demands in country global drive win - win abundant for cleaner hydrocarbon solutions transportation reserves fuels Transport + = fuel security Job creation need for resource GDP growth energy monetisation Sasol’s security diversification tec
Slide 9: Global oil demand increase as emerging countries develop
global oil demand increase as emerging countries develop 0.10 5,5 billion people consume 0.09 less than 0,01bbl/d Oil consumption per capita 0.08 0.07 USA 0.06 OECD 0.05 (bbl/d) 0.04 0.03 0.02 0.01 0.00 0 10000 20000 30000 40000 50000 India India China China 2016 2016 2005 2005 GDP per capita ~ 50 O
Slide 10: Transportation fuels demand is dependent on a single source - oil
transportation fuels demand is dependent on a single source - oil Sources of energy: 100% = 10 878,5 million tons oil equivalent per annum Gas 23.6% Households & other Hydro 6.2% Nuclear 5.8% Electricity Coal 28.4% Industry Oil 36% Transportation Source: Energy Information Administration, BP Statist
Slide 11: Opportunity exists to convert gas and coal into transportation fuels
opportunity exists to convert gas and coal into transportation fuels Sources of energy: 100% = 10 878,5 million tons oil equivalent per annum Gas 23.6% Households & other Hydro 6.2% Nuclear 5.8% Electricity Coal 28.4% Industry Oil 36% Transportation Source: Energy Information Administration, BP Stat
Slide 12: Scope for growth supported by significant natural gas and coal reserves
scope for growth is supported by significant natural gas and coal reserves 1,200 1,000 Reserves: 1000 million boe 800 600 400 200 0 oil natural gas coal Concentration of the World’s Reserves Number of % of world % of world % of world countries population GDP reserves Oil 10 7% 5% 80% Gas 12 15% 25%
Slide 13: GTL a compelling opportunity
GTL a compelling opportunity Crude oil prices expressed as a multiple of natural gas prices 22 20 WTI crude oil as a multiple of henry hub gas 18 GTL 16 prices (mmBtu/bbl) 14 12 10 8 6 LNG 4 1985 1990 1995 2000 2005 2010 2015 Year 13
Slide 14: Natural gas expansion a priority
natural gas expansion a priority Abundance of remote natural gas reserves Arbitrage opportunity between oil and gas prices Macro drivers • Shale-gas dynamics • GTL currently more competitive than LNG (on a spot gas price basis) Carbon footprint of gas-generated electricity ~30% that of coal-generate
Slide 15: Growth pipeline exploration focussed on increasing gas reserves
growth pipeline exploration focussed on increasing gas reserves Exploration – Implementation Feasibility Pre-feasibility Idea stage gas focus • Secunda growth • China CTL • Mafutha CTL • Oryx GTL II • Mozambique phase 1 blocks A, Sofala, • Uzbekistan GTL • India CTL • Indonesia CTL • Four gasifiers
Slide 16: Expanding Mozambican footprint
expanding Mozambican footprint Pande + Temane complex Equity SPT 70% (Op), CMH 25%, IFC 5% Temane onstream 2004, initially for 200 MMscf/d Pande PPA License Pande onstream July 2009 producing 230 MMscf/d, with Temane providing PSA License swing CPF produces – 300 Temane MMscf/d 50 km USD 300 million
Slide 17: Papua New Guinea a key area of focus
Papua New Guinea a key area of focus Licenses 285, 286, 287 & 288 PPL 287_B Equity SPI 51% (op), PPL 287_A Talisman 49% Well scheduled in PPL 288 PPL285 Block 285 in 2010 PPL 286 Seismic scheduled in Block 287 in 2010/11 Replicate “Mozambique Footprint” in success case GTL Monetization Option Sasol
Slide 18: Australia assets prospect evaluation ongoing
Australia assets prospect evaluation ongoing 12 North Browse Australia entry in 2008 Puffin Field Basin Skua Field Keeling -1 Equity in two Blocks: AC/P 52 Maret -1 Crux-1 13 • WA-388-P, Argus Abalone -1 Abalone Deep- 1 Carnarvon Basin Poseidon Adele -1 (30% equity) 123 Ichthys 124 • AC/P 52, Browse
Slide 19: Increasing Gabon footprint
increasing Gabon footprint Etame Oil Field Cluster Equity SPI 27.75%, Vaalco 28.07%(Op), Addax 31.36%, Tullow 7.5%, Sojitz 2.98%, PetroEnergy 2.34% Production ~ 20 000 bbls/d 5 Well campaign planned for 2010 5th exploration period extended Sasol Petroleum International © Copyright 2010 19
Slide 20: Oryx GTL - delivering robust returns
Oryx GTL - delivering robust returns Qatar: 32 400 b/d nameplate capacity; 80-90% utilisation ~7% contribution to group earnings ~44% operating margin; R1 bn FY10 profit ~5 year full payback period Significantly exceeds IRR hurdle rate Ultra-low sulphur diesel fetches premium price Potential for cap
Slide 21: Other GTL projects in advanced stages
other GTL projects in advanced stages Escravos GTL, Nigeria Currently in construction ~32 400 b/d 10% equity interest (partners are NNPC & Chevron) Associated gas feedstock that is currently flared Will produce diesel, naptha and LPG Uzbekistan GTL, Uzbekistan Currently in feasibility ~36 000 b/d JV
Slide 22: Our case for growth remains strong
our case for growth remains strong Leading alternative In a world of Unique investment energy company disruptive change proposition 60 years of alternative The ‘new normal’ Strong existing energy experience business Volatile economic recovery Operating & continuously Competitive technology lead impr
Slide 23: Thank You. Any Questions?
Thank You. . .Any Questions ? Dankie. . .Enige Vrae ? Danke. . .Fragen ? Siyabonga. . .Imibuzo ? Xièxie. . .yǒuwèntíma ? 谢谢……… 有问题吗？ 23