The one positive of this, even if some of it is depressing, is that there'll be life on the other side, writes Adriaan Basson.
The US department of commerce has imposed a five-year-long 414.92% anti-dumping duty on Sasol for imports of acetone, effectively closing off the US market to the oil and chemicals company.
Sasol expects to raise at least $6 billion by the year 2021 through its cash generation plan.
The Sasol group said it will be within its debt covenants on June 30, its financial year end, as long as oil prices remain at current levels.
It has been a week of steep drops for some emerging-market stocks, but Sasol has out-plunged its peers.
Its share price has slumped by almost 47%, after the oil price all but collapsed.
The global chemicals and energy company is set to list on the secondary A2X exchange in early February.
Iqbal Survé’s Ayo Technology Solutions already faces an existential threat from the PIC and now has to contend with a new blow – its most important client, Sasol, is running for the hills.
Apart from a renewed bout of load-shedding and power stations that are falling apart, the new Eskom CEO heads an operation with earnings that are far exceeded by its debt repayments.
The petrochemicals group's outgoing chairperson says the Lake Charles Chemicals Project's shortcomings were so significant that the senior management should receive no rewards.
The mining business had turnover of R20bn in the 2018 financial year.
The inhabitants of Emba, as the town is known, are tied to Sasol in a complicated embrace.
Sasol was already struggling to keep up with repayments on R162 billion in debt because of a botched US chemical project, when it was blindsided last week a plunge in oil prices. Its shares tumbled to the lowest in two decades, with covenants on loans under threat.
Sasol said it may sell assets or stock to ease its financial woes after an oil-price collapse exacerbated a debt burden swelled by a troubled expansion in the US.
It may need to hold a rights offer as it struggles with massive debt burden.
The petrochemicals giant says to protect its balance sheet it will not be paying an interim dividend.
Sasol says it is investigating the explosion which occurred last week at its Lake Charles Chemicals Project and caused to damage to a low-density polyethylene unit.
Sasol has reported an explosion which resulted in a fire at its controversial US chemicals plant.
The report formed part of a previous risk and corporate governance assessment commissioned by the petrochemical conglomerate.
Sasol’s joint CEOs, Bongani Nqwababa and Stephen Cornell, have agreed to resign after an independent review into the company’s disastrous US project.
The petrochemical group says it now hopes to release its earnings report by end October.
Atlantic SeaboardLiberty Financial Advisers
Cape TownTumaini ConsultingR600 000.00 - R800 000.00 Per Year
R 4 500 000
R 4 800 000
R 3 300 000
We subscribe to the Press Code.
You choose what you want
News24 on Android
Get the latest from News24 on your Android device.
Terms and Conditions
24.com Terms and Conditions - Updated April 2012
Creating your profile will enable you to submit photos and stories to get published on News24.
This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.