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Sasol enters several hedges for FY17

8th December 2016

By: Creamer Media Reporter

  

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JSE-listed Sasol has entered into several hedges to mitigate specific financial risks in the 2017 financial year, which ends June 30, 2017.

The move, part of a board-approved policy, includes hedges against the downside risk in the crude oil price to “increase the stability and predictability of Sasol’s cash flows”.

During the second quarter to December, Sasol entered into oil put options, which provided an average Brent crude oil price floor of $48.68/bl, net of costs, for about 7.6-million barrels.

The company also entered into put options for the third quarter and a part of the fourth quarter for an average Brent crude oil price floor of $47.06/bl for about 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,” Sasol concluded.

Edited by Creamer Media Reporter

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