South African energy group Sasol reported an annual loss of ZAR91.3 billion ($5.2 billion) for the fiscal year of July 2019 - June 2020. The dismal results were mostly attributed to the collapse in oil prices which significantly slashed Sasol’s market capitalisation. Last week, the company warned of ZAR112 billion ($6.3 billion) writedowns on US chemical assets which surpasses its market cap of ZAR94.9 billion ($5.4 billion).
Sasol also announced an issue of new shares worth up to $2 billion in the first half of 2021 which drove its shares to fall 5% in yesterday’s early trading. In addition, the company hoped to raise $2 billion to shore up its balance sheet through asset divestiture. Hanwha Solutions, Ineos, CPChem, and LyondellBasell had reportedly submitted bids to acquire a large stake in Sasol’s Lake Charles Chemical Project (LCCP) in Westlake, Louisiana.
