Amid growing investor concerns about Sasol’s debt levels after a crash in the price of oil, the company will consider raising funds by selling additional shares and disposing of more assets. Last week, around $4.6 billion (76.5 billion Rand) has been wiped off Sasol's market value. As oil prices slumped before recovering slightly to end the day down 29.36 percent at 37.24 Rand, Sasol's shares fell as much as 42 percent, hitting a 21-year low on Thursday.
The surprising decline in oil prices has frightened investors. Following some debt covenants renegotiated last November, investors were already concerned about the company's high debt.
In addition to reducing costs, expanding asset disposals in excess of the current $2 billion target and engaging lending groups, Sasol will also consider rescheduling some capital expenditure as a reaction to the frantic selling. With no significant debt maturities before May 2021, Sasol said cash and available facilities stood at around $2.5 billion Rand.
