Johannesburg – Petrochemicals group Sasol warned on Tuesday that it is expecting a significant loss in the year end of June, as it announced about R112 billion in impaired charges.
The R112 billion write-down exceeds Sasol’s market capitalisation of R94.9 billion.
The energy company’s share price has fallen by about two-thirds over the past five years, as it battles debt, cost overruns at its major US Lake Charles chemicals project, and, in recent months, historically low global oil prices. This has forced it to enter into a restructuring process, that has seen it put up some of its assets for sale.
Sasol released a trading statement on Tuesday saying it had written down its energy portfolio by R12.5bn, its base chemicals division by R71.3 billion, and its chemicals division by R27.7 billion.
The chemical and energy company said it expects to report a headline loss per share of between R8.72 and yR14.86 for the 2020 financial year.
