Sasol set for worst week yet as oil crash speeds investor flight - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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An oil price crash has wiped R79 billion ($4.8 billion) off the market value of South African petrochemicals group Sasol via SABCNewsOnline

, adding to the government’s difficulties in shoring up business confidence as giant state-backed companies flounder.

Sasol is not a state-run company, but its top two shareholders are state agencies, which jointly hold a nearly quarter share. Stocks with exposure to oil markets dived everywhere on Monday as crude prices suffered their biggest daily sell-off since the 1991 Gulf War, dropping 25% after top producers Saudi Arabia and Russia began a price war that threatened to leave oil markets overwhelmed with supply.

“If this environment persists for an extended period of time, it is likely that Sasol will need to both raise new equity and accelerate its asset sales programme to repay debt,” Prudential, the fourth-biggest shareholder, wrote in a market comment dated March 9.Sasol, which is the world’s biggest maker of motor fuel from coal, said in Februrary that its gearing – net debt to EBITDA – stood at 2.9 times, below the maximum of 3.5 times allowed under its bank covenants.

 

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tito_mboweni InkunziInv will you please explain in simple language how this happens. Why is SASOL the only refiner affected?

Why don't they sell the spirit alcohol they make as a by product? They will make a killing

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