Sasol Ltd (Qtr End 6/30/07) Earnings Call Transcripts

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2007-09-18 02:26:46.0

Tags: Call Transcript, South Africa, Earnings, CEO, Storage, Hardware, Seeking Alpha

Question-and-Answer Session

Operator

[Operator Instructions]. Thank you very much.

Lawrence Patrick Adrian Davies - Chief Executive

The question is from there, so okay, Jonathan?

Jonathan Kennedy-Good - Deutsche Securities

I have just -- Jonathan Kennedy-Good here from Deutsche. Just very briefly you talk about your technological advantage, and looking at your guidance on CapEx or so does appear as if the CapEx spend is very directed towards the South African business for obvious reasons. But would you consider acquiring or moving into the upstream more aggressively to roll out expansion plans abroad, outside of your Sasol ship on JV? That's the first question. And then secondly, do you have an estimate for us on further cost of carbon caption storage in South Africa, I mean I will ask you the third in a bit?

Lawrence Patrick Adrian Davies - Chief Executive

Sure. Thanks Jonathan. Lean, you can perhaps help with the first one, but me start. Ours is an organic growth strategy largely, but it certainly doesn't rule out making acquisitions in the upstream sector and this doesn't test will share from joint venture doesn't really come into play because we already have an upstream business which predated the joint venture. So yes that is an option to us. Lean, would you like to comment further on it?

Giullean Johann Strauss - General Manager

No I think that first we are exploring such opportunities.

Lawrence Patrick Adrian Davies - Chief Executive

Great. I left your second question, apologies on that.

Jonathan Kennedy-Good - Deutsche Securities

On the carbon capture and storage cost for South Africa?

Lawrence Patrick Adrian Davies - Chief Executive

No, I didn't really talk about it too much now, but this is a global problem. Coal carbon capture and storage is something that all coal users are resting with this at the moment. So there is enormous amount of efforts that we are putting into it but so are many other people, so difficult to indicate that I can -- we can give them feeling for something after 4 billion rand spend in the environmental projects that would include improving energy efficiency and strong incentive over the next number of years just to give you a flavor, probably lack on give you an absolute figure in terms of cost increases. Please call it as you wish [ph]. Now one from Keld, next to Jonathan.

Keld Rasmussen - Avior Research

 

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