On Thursday, petrochemical and fuel producer Sasol said it could sell assets or stocks to alleviate its financial difficulties after the collapse in oil prices added to the debt burden and also after the missed expansion in the USA via its Lake Charles project. Sasol lost another 30% of its share price this week which has now fallen by almost 95% since last year.
“The disruption in the global oil market, coupled with the continued impact of the Covid-19 epidemic, has dramatically changed our outlook in just a few weeks. It is essential that we keep things under control by acting quickly and decisively, ” said Managing Director Fleetwood Grobler.
The fuel and chemical producer will also seek to reduce operating costs and reschedule certain capital expenditures. The group also says it will meet its debt commitments on June 30, the end of its fiscal year, as long as oil prices remain at their current levels.
According to Moody’s, the company has debt of around 138 billion rand, or about 8.6 billion dollars.
Source: Agence Ecofin