Sasol FY20 trading statement and outlook
Sasol has released its trading update for the 2020 financial year.
Sasol Ltd expects the headline loss per share figure to show a decline of more than 100% against the prior year’s comparative period. Fair value adjustments due to partnership discussions and impairments in lieu of a challenging macro-economic outlook are amongst the major contributors to the headline loss figure to be reported.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) is expected to decline by between 17% and 37% for the full year. Lower global chemical prices, refining margins as well as a 18% decline in the rand oil basket price have been amongst the negative catalysts for earnings.
The group continues to review its asset make up to avert a possible $2bn capital raise through a rights issue to pay down debt. While macro concerns have weighed the group. The large debt pile has also been impacted by cost overruns and delays at its Lake Charles Chemicals project (LCCP) in Louisiana. Sasol has recently announced the sale o f its oxygen plant (Secunda synfuels) for around R8.5bn. The group is also looking for a partner for its US Base Chemicals operations.
Sasol will release its full year earnings on the 17th of August 2020.
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