This also comes six months after it reported a full-year loss of more than R90-billion. A pivot to gas is part of Sasol’s strategy to green its asset base. “A decision was made not to pursue a rights issue given the current macroeconomic outlook, and the significant progress made on our response plan initiatives,” Sasol said in a statement. As a result of progress made, Sasol will not go ahead with its plan for a $2 billion rights issue. R3.3bn gain on the realisation of the foreign currency translation reserve (FCTR), mainly on the divestment of 50% interest in the US LCCP Base Chemicals business. 3) Debt Reduction: The current debt stands at about $10bn and Sasol plans to reduce it to $6bn by the end of the 2021 financial year. During the period, we utilised proceeds from our asset divestments to repay the US Dollar syndicated loan, as well as a portion of our Revolving credit facility, reducing our US dollar denominated debt by almost R28bn (US$2bn) to R121bn (US$8.2bn). Through our comprehensive response plan and planned asset divestments, we intend to further reduce our net debt to achieve a Net debt: EBITDA ratio of less than 2 times and gearing of 30% by 2023. Sasol calls off rights issue. 18 March 2020 - 05:10 Lisa Steyn A potential R33bn rights issue at Sasol, whose shares plunged again on Tuesday, remains a measure of last resort as the company moves to … The energy and chemicals group has managed to cut debt by conserving cash and selling non-core businesses. Rights issue A decision was made not to pursue a rights issue given the current macroeconomic outlook, and the significant progress made on our response plan initiatives. Adds details on H1 results, rights issue and background. The company is making progress on debt reduction, with its total debt at the end of December amounting to R126.3-billion compared with R189.7-billion as at 30 June 2020. Subscribe to our Newsletter to get daily updates on local affairs, with a global context. Commenting today following another brutal bout of share selling, Sasol CEO, Fleetwood Grobler, said the company was sufficiently capitalised, and that it would generate free cash even in the current low oil price scenario. Last year, Sasol said it would issue up to $2 billion of shares in the second half of 2021 – which would have been among the country’s largest rights issues in decades – in an effort to help it tackle its debt. We are appreciative of the continued support from our lenders during this challenging period. We expect the balance sheet to regain flexibility following the implementation of our comprehensive response plan strategy. Creecy concedes that pollution is a … Sasol delivered a good set of results for the six months ended 31 December 2020, our earnings increased by more than 100% to R15.3bn from R4.5bn in the prior period. Sasol is also continuing its probe into an apparent sulphur stench that shrouded parts of Gauteng and Mozambique last week. TAPPING shareholders for funds via a rights issue might be “a tough ask” for Sasol’s shareholders, said Bloomberg News citing an analyst. Retire at 55 and live to 80; work till you’re…, You can imagine a man like Markus Jooste will use up…, Flash Briefing: SA missing vaccination target;…, © 2021 BizNews, Inc. | The Rational Perspective, Why Sasol shares are running – With insights from The Wall Street Journal, Sasol expects stronger half year results despite Lake Charles challenges. Environmental activists say the poor air quality in the vicinity of Eskom’s and Sasol’s plants is a violation of South Africans’ constitutional rights and kills as many as 2 000 people a year, and have dragged Creecy into a court battle to ensure the problem is rectified. Although oil prices have recovered and the macroeconomic outlook has improved, it’s not paying an interim dividend as it continues to de-gear. In the meantime, Sasol executives don’t have to hold their nose when presenting their latest set of financial results. Cost containment is one. The final decision will be announced in February 2021 when the interim results are released. Victor Told Business Maverick that Sasol is now positioned to make a profit at $45 a barrel. Investment in working capital was R27.3bn; Normalised cash fixed reduced by 10% (R3.2bn) compared to the prior period; Profit before interest and tax (EBIT) of R21.7bn compared to R9.9bn in the prior period; Adjusted EBITDA declined by 6% from R19.8bn in the prior period to R18.6bn; Basic earnings per share (EPS) increased to R23.41 per share compared to R6.56 in prior period; and. The balance sheet deleveraging pathway will continue to be prioritised to ensure that we operate within our financial covenants and maintain adequate liquidity headroom, whilst delivering the Sasol 2.0 transformation programme. “If the public is concerned, you need to be concerned, so we are doing more investigations,” Victor said. But should the rights issue take place, it will be capped at $2bn. JOHANNESBURG, Feb 22 (Reuters) - South African petrochemical firm Sasol SOLJ.J said on Monday it has decided not to pursue a rights issue of up to $2 billion after significant progress in its turnaround strategy. The world is changing fast and to keep up you need local knowledge with global context. Our gearing decreased from 114.5% at 30 June 2020 to 76% at 31 December 2020 mainly due to repayment of US dollar debt (20%) and a stronger closing Rand/US dollar exchange rate (7%). We have no significant debt maturities before November 2021 when the R2.2bn (US$150m) term loan becomes due. As at 31 December 2020, our liquidity headroom was in excess of R53bn (US$3.6bn) well above our targeted liquidity of at least US$1bn, with available rand and US dollar-based funds improving as we advance our focused management actions. Sasol, an integrated chemicals and energy producer, has taken a $760m bet on Mozambique while the company continues its retreat from West African assets as part of its speeded-up divestment programme. The Sasol code of ethics – which addresses issues such as corruption, bribery, conflicts of interest and human rights – governs our approach to ethical behaviour and fair business practice. Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg. © 2021 BizNews, Inc. | The Rational PerspectiveTerms & ConditionsComments Policy. A petrol station is seen in Soweto. A decision was made not to pursue a rights issue given the current macroeconomic outlook, and the significant progress made on our response plan initiatives. Creecy concedes that pollution is a … Help us learn with your expertise and insights on articles that we publish. The … By Paul Burkhardt Mar 17, 2020 JOHANNESBURG - Sasol Ltd. is preparing for South Africa’s biggest rights issue in two decades after a share-price … The company said it was able to repay around 28 billion rand ($1.89 billion) of debt in the six months ended December 2020. At 31 December 2020 our total debt was R126.3bn compared to R189.7bn as at 30 June 2020. View our comments policy here. The year ahead looks brighter than it did a few months ago, but it is early days yet and it remains to be seen if the rally in oil prices will be sustained. This type of issue gives existing shareholders securities called rights. Sasol Ltd. is preparing for South Africa’s biggest rights issue in two decades after a share-price collapse sparked by cost overruns at its U.S. chemicals project and the plunge in oil prices. Sasol has not found any evidence that its Secunda plant, where coal is processed into synthetic fuel and chemicals, was the source, which the department of environment is also probing. In the meantime, Sasol executives don’t have to hold their nose when presenting their latest set of financial results. Please note you must be a Maverick Insider to comment. Sasol CEO Fleetwood Grobler explains why company abandoned rights issue. Sasol walks away from planned $2 billion rights issue News24 22 Feb 2021 Sasol will not be going ahead with its plan to raise $2 billion through a rights issue, the company announced on Monday as it continued to focus of reducing debt amid challenging operational conditions. Click here to see other benefits and to sign-up to our reader community supporting quality, independent journalism. The company brought its costs down by 10% and CFO Paul Victor told Business Maverick in an interview that this was effectively 13% if inflation is included. Select which newsletters you'd like to receive, A number of factors are behind this comeback. Given our current financial leverage and the risk of a prolonged period of economic uncertainty, the Board believes that it would be prudent to continue with the suspension of dividends. Sasol has called off a $2bn rights issue after it managed to slash debt by selling non-core businesses and conserving cash. Among other things, this means that a mooted rights issue is now off the table. Actual capital expenditure amounted to R7.5bn compared to R21.4bn during the first six months of 2020. The company’s leadership has taken a potentially contentious rights issue off the table and reduced debt. Headline earnings per share (HEPS) increased by more than 100% to R19.16 per share compared to the prior period. Cash generated by operating activities decreased by 40% to R11.7bn compared to the prior period and our net cash on hand decreased from R34.1bn as at 30 June 2020 to R27.6bn. This provided additional flexibility, subject to conditions, which were consistent with our capital allocation framework, i.e. "Lord make me chaste, but not yet" ~ Saint Augustine, Please sign in or register to enable this feature. BECOME AN INSIDER. That’s what we want from our members. “It’s such a weight off our shoulders… as a shareholder myself, you don’t want to do a rights issue if you don’t have to,” Victor told Business Maverick. In terms of the covenant waivers with the lenders that existed at 30 June 2020 we remain obliged to use certain planned disposal proceeds to settle debt. Removing advertising from your browsing experience is one of them - we don't just block ads, we redesign our pages to look smarter and load faster. JOHANNESBURG, March 12 (Reuters) - South African petrochemicals group Sasol SOLJ.J said it would consider raising funds by selling additional shares and disposing of … that Sasol is now positioned to make a profit at $45 a barrel. Sasol has delivered a good set of results for the half year ended 31 December 2020. Read also: Why Sasol shares are running – With insights from The Wall Street Journal. Sasol said on Monday, 22 February, it has decided not to pursue a rights issue of up to $2bn after significant progress in its turnaround strategy. Sasol’s board also approved the final investment decision (FID) on a $760-million gas project in Mozambique. Cost containment is one. This achievement is as a result of a strong cash cost, working capital and capital expenditure performance in response to the challenging environment. DM/BM. Sasol has also realised $3.3-billion in asset sales – $2.5-billion for the period under review, with another $700-million in the pipeline. On Monday, it unveiled a jump in interim earnings and said it no longer had to pursue a rights issue. The balance sheet deleveraging pathway will continue to be prioritised to ensure that we operate within our financial covenants and maintain adequate liquidity headroom, whilst delivering the Sasol 2.0 transformation programme. Petrochemicals group Sasol said on Thursday 12 March that it was taking measures to shield its business from the fallout of the coronavirus, which has included slumping oil prices. There are many great benefits to being a Maverick Insider. A few months ago, Sasol was on the ropes as oil prices tanked and its business model crumbled. The free cash flow for the period was R0.4bn in a low US$43.62/barrel average oil price environment. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. MAVERICK INSIDERS CAN COMMENT. prioritising debt reduction through commitments to suspend dividend payments and acquisitions while our leverage is above 3 times Net debt: EBITDA. Gains of R4.6bn on the translation of monetary assets and liabilities due to a 15% strengthening of the closing rand/US dollar exchange rate compared to June 2020; Gains of R5bn on the valuation of financial instruments and derivative contracts; and. The code requires that we conduct business in accordance with the highest standards. Sign up here or sign in if you are already an Insider. As South Africa’s second-biggest emitter after Eskom of the greenhouse gases linked to climate change, Sasol’s record on this front will be under intense scrutiny as it strives to reduce its carbon footprint. Where there’s sulphur, there’s fire: What was behind the big stench over Gauteng and Mpumalanga? “It’s such a weight off our shoulders… as a shareholder myself, you don’t want to do a rights issue if you don’t have to,” Victor told. (Photo: Waldo Swiegers / Bloomberg via Getty Images). A number of factors are behind this comeback. We continue to actively manage the balance sheet with the objective of maintaining a healthy liquidity position and a balanced debt maturity profile. Our earnings were positively impacted by the following non-cash adjustments: Read also: Sasol expects stronger half year results despite Lake Charles challenges. The oil price has rebounded from negative territory in 2020 to more than $60 a barrel. Our Net debt: EBITDA ratio at 31 December 2020 was 2.6 times (bank definition), significantly below the threshold level. March 17 2020 Sasol plans to launch South Africa’s biggest rights issue in decades as the petrochemicals group seeks to cut its debt after the oil price crash. Commenting on the likely scenarios for the debt-laden petrochemicals company, Abdul Davids, a fund manager at Kagiso Asset Management, told the newswire: “A distressed rights issue amid current market conditions will be a […] Working capital ratio of 14.9% compared to 14.6% for the prior period. Sasol to consider rights issue, asset disposals as oil crash speeds investor flight 3/13/2020 JOHANNESBURG (Reuters) - South African petrochemicals group Sasol said it would consider raising funds by selling additional shares and disposing of more assets amid growing investor concerns about its debt levels after a crash in the price of oil. in an interview that this was effectively 13% if inflation is included. Talk about a roller coaster. In addition, we repaid ZAR banking facilities of approximately R4bn. Despite a 23% decrease in the rand/barrel oil price, our adjusted EBITDA decreased by only 6%. Everything from investing like Warren Buffett to the Audiobiography of Cyril Ramaphosa. Such initiatives helped to offset a 23% decrease in the average rand per barrel price of Brent crude oil for the period. Sasol’s surprisingly upbeat profit guidance rekindled hopes that the chemical and synthetic fuel producer, one of the worst performers on the JSE in … Victor Told. Although our cash flows were impacted by low crude oil prices, softer chemical prices, plant downtime and the impact of Covid-19, our cash conservation initiative and asset divestment programme enabled us to repay approximately R28bn (US$2bn) of debt. South African petrochemical firm Sasol said on Monday it has decided not to pursue a rights issue of up to $2 billion after significant progress in its turnaround strategy. The oil price has rebounded from negative territory in 2020 to more than $60 a barrel. “If the public is concerned, you need to be concerned, so we are doing more investigations,” Victor said. The company brought its costs down by 10% and CFO Paul Victor told. We encourage different, respectful viewpoints to further our understanding of the world. To create flexibility in Sasol’s balance sheet during this peak gearing period our lenders agreed to lift our covenant from 3 times to 4 times of Net debt: EBITDA (bank definition) when measured at 31 December 2020. SASOL, the South African petrochemical group, acknowledged it was considering a rights issue in order to ease pressure on its balance sheet.. As a result, R14.3bn (US$975m) has being classified as short-term debt. Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. Environmental activists say the poor air quality in the vicinity of Eskom’s and Sasol’s plants is a violation of South Africans’ constitutional rights and kills as many as 2 000 people a year, and have dragged Creecy into a court battle to ensure the problem is rectified. Petrochemicals giant Sasol said on Monday that its headline earnings for the six months to the end of December 2020 almost tripled to R15.3-billion from R4.5-billion in the same period the year before. The prospect of a rights issue in 2020 as the economy and oil markets were in full meltdown set nerves jangling at Sasol’s head office. The earnings also got a positive lift from various “non-cash adjustments”, to use the arcane language of accountants. JOHANNESBURG - SASOL has taken its $2 billion (R29.36bn) rights issue off the table after cash conservation efforts coupled the asset divestments paid off … We continue to assess our mix of funding instruments to ensure that we have funding from a range of sources and a balanced debt maturity profile.
Jewellers In Kempsey, Ibn Ziyad Kon Tha, Abu Amr Ibn Anas, Friesland Ship Wows, Sports South Dealer Requirements, Lumina Alabang Hiring, Best Lord Of The Rings Movie, Prometheus Node Exporter Server Metrics,