Thursday, Dec 02, 2010

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   By Robb M. Stewart 
   Of DOW JONES NEWSWIRES

JOHANNESBURG (Dow Jones)--Sasol Ltd. (SSL), the world's largest producer of motor fuels from coal, said Thursday a delay in recommissioning its Secunda plant has put a production target of 7.3 million metric tons of synthetic fuels at risk.

Instead, the company now believes 7.2 million tons to be a more realistic full-year target, Chief Financial Officer Christine Ramon said in a statement.

The operation at Secunda began its largest maintenance shutdown in its 60-year history in late August, but the start up afterward was delayed by a few days, Ramon said. She said production in the three months through September was in line with Sasol's expectation at 1.7 million tons.

The Oryx gas-to-liquids plant in Qatar, meanwhile, sustained operating rates at 83% of nameplate capacity during the first quarter of the 2011 financial year, averaging output of 27,000 barrels a day, Ramon said. Sasol has a 49% stake in Oryx and Qatar Petroleum 51%.

"With higher production and lower unit costs, we expect a healthy contribution to group operating profit from Oryx GTL in the current financial year," she said.

Sasol's first-quarter revenue was slightly higher than the quarterly average for the final six months of the year through June, due largely to higher product prices and production improvements, particularly from the Johannesburg-based company's offshore businesses, she said.

Product prices have shown year-on-year improvement, which has largely mitigated the impact of the stronger rand against the dollar, but the sustained strength of the currency remains a key challenge, she said.

Ramon said the company's chemical operations had a strong first quarter, contributing almost one-third of overall operating profit and a 2% rise in sales volumes over the prior year's quarterly average.

At 0722 GMT, Sasol's shares were trading 0.9% higher at 322 rand amid a similar gain in the broader market.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

(END) Dow Jones Newswires

02-12-10 0740GMT