Higher interest costs Following Sasol's two-notch credit rating downgrade by Moody's, its interest costs will rise by c. $40mn p.a. (c. R1/share) Hedging An update on the hedging programme was also provided: Figure 2: Sasol hedging programme update Source: Sasol, Anchor Asset disposals No real update was given around its planned asset disposals beyond Sasol stating that good progress is being made, despite the current difficult macro environment. The strategy outlined by Sasol earlier this year to raise $6bn in capital implies that it is looking to raise anywhere between $0bn-$4bn in asset sales. Figure 3: Sasol capital raise Source: Sasol, Anchor Response to the lower oil prices Sasol indicated that headcount reductions are likely to happen in response to the lower oil prices. The company has issued a section 189 to its representative trade unions, inviting them to enter into consultations with Sasol. What does the valuation look like?