by Rowan Goeller | Mar 18, 2020 | Chemicals
Sufficient liquidity: Sasol has sufficient liquidity to complete the capital spend on the LCCP as well as continue running the business. Available liquidity could be impacted slightly by the ability to place commercial paper in South Africa, however.Cost savings in...
by Rowan Goeller | Mar 17, 2020 | Chemicals
Sasol published an action plan to protect its balance sheet and also re position the company to withstand lower oil prices for longer. The company is targeting to generate $6bn by the end of FY21, much higher than our earlier estimate of $5bn. Key...
by Rowan Goeller | Mar 16, 2020 | Chemicals
Petrochemical prices: Petrochemical prices are usually published early on a Monday morning. Petrochemical prices for last week were reported lower following the decline in the oil price of the previous week. Asian ethylene prices declined by almost...
by Rowan Goeller | Mar 13, 2020 | Chemicals
Calculating spot earnings seem superfluous after the oil and share price decline the company saw during the week. The market is pricing in a high probability of a liquidity event – a covenant breach and lenders calling their money back. Our views are...
by Rowan Goeller | Mar 12, 2020 | Chemicals
Investment case compromised: The Sasol investment case has been compromised by budget overruns and delays at Lake Charles, unmanageable debt levels, falling oil and chemical prices and an unwillingness to hedge oil prices at higher levels.Market concerns...
by Rowan Goeller | Mar 9, 2020 | Chemicals
A step down in oil prices: Following Russia’s rejection of OPEC’s proposal to cut oil production the oil price dropped by 25% and has traded below $34/bbl. The rand has also weakened significantly overnight, trading at R16.32/$. The lower oil...
