Sasol warns of large annual loss as writedowns exceed market capitalisation – News24

Sasol warns of large annual loss as writedowns exceed market capitalisation – News24

Petrochemicals group Sasol [JSE:SOL] warned on Tuesday that it is expecting a significant loss in the year to end June, as it announced about R112 billion in impairment charges.

The R112 billion writedown exceeds Sasol’s market capitalisation of R 94.9 billion. 

The chemicals and 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. It has been forced it to enter into a restructuring process, that has seen it put up some of its assets for sale.

In a trading statement on Tuesday, Sasol said it had written down its energy portfolio by R12.5bn, its base chemicals division by by R71.3bn, and its chemicals division by R27.7bn.

Sasol said it expects to report a headline loss per share of between R8.72 and R14.86 for the 2020 financial year. 

The group’s full annual financial results are expected on August 17.

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