(3 minutes read)
· South Africa’s Sasol said it would report an annual loss after a drop in oil and chemical prices coupled with the impact of the coronavirus pandemic, which had considerably affected its earnings
· The headline loss per share is expected to be between R8.72 and R14.86 in the year to June 30, compared to R30.72 per share during the same period a year ago
· Lower global chemical and refining margins and an 18% decrease in the rand per barrel price of Brent crude oil have had the adverse bearing on its earnings
South Africa’s Sasol said it would report an annual loss after a drop in oil and chemical prices coupled with the impact of the coronavirus pandemic, which had considerably affected its earnings. Sasol produces motor fuel from coal. The headline loss per share is expected to be between R8.72 and R14.86 in the year to June 30, compared to R30.72 per share during the same period a year ago. Lower global chemical and refining margins and an 18% decrease in the rand per barrel price of Brent crude oil have had the adverse bearing on its earnings.
The company said it had recorded impairments in some of its cash generating units after a weakening economy and erosion in the value of Rand. Investors have been concerned over the company’s growing debt largely due to delays and cost overruns at its Lake Charles Chemicals project (LCCP) in Louisiana as reported by www.trendsnafrica.com recently. To stem the growing criticisms from its shareholders, former joint-CEOs of the company resigned in a bid to restore shareholder confidence. The company’s financial results are expected on August 17. The shares of the company are expected to fall further after the results are released.
