(3 minutes read)
· Sasol will continue to support Chevron in the performance of the plant, though weaker oil prices and the global impact of Covid-19 have negatively impacted Sasol, as well as its share price
· The company is also under pressure due to financing problems regarding its Lake Charles Chemicals Project in the US and now bears a US$10 billion debt burden.
Sasol will continue to support Chevron in the performance of the plant, though weaker oil prices and the global impact of Covid-19 have negatively impacted Sasol, as well as its share price. The company is also under pressure due to financing problems regarding its Lake Charles Chemicals Project in the US and now bears a US$10 billion debt
burden.
Sasol now plans to go for a US$2 billion rights issue. This is billed as the country’s largest capital raise in decades. Experts feel that this would help the ailing corporation to alleviate pressure on its balance sheet. The company is considering hiving off its interest in a pipeline and a gas fired power plant in Mozambique to mobilize resources for its restructuring plans. The company is also in partnership talks to introduce a partner to its base chemicals business in the US.
Shares of Sasol have plunged some 57% this year compared to a Johannesburg Stock Exchange ( JSE) All Share index that is down just under 20%. Sasol shares are normally correlated with the price of international oil, which is in the declining trajectory.
