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Update on market volatility and cautionary announcement

12 March 2020

Johannesburg, South Africa – The unprecedented set of combined challenges driven by COVID-19 and the significant decline in the oil price have come at a time when Sasol is in a peak gearing phase as the Company completes LCCP. 

Sasol is confident that its foundation business is capable of positive cash flow from operations in a low oil price environment. At the prevailing Rand oil price of approximately R580/bbl, Sasol will be within the current covenant levels at 30 June 2020. In anticipation of a lower-for-longer Rand per barrel oil price, a comprehensive package of actions is being finalised to deliver this and sustainably strengthen the balance sheet. It is important to note the current liquidity position: 

  • Sasol has current cash and available facilities of approximately US$2,5bn; and
  • Sasol has no significant debt maturities before May 2021.

Sasol is prioritising the following actions, details of which will be announced to the market on Tuesday:

  • Business optimisation to reduce costs;  
  • Working capital optimisation;
  • Re-scheduling some capital expenditure; 
  • Expanding the scope of, and accelerating, the asset disposal programme to realise proceeds in excess of the current US$2 billion target; 
  • Engaging our lending groups. Thus far, engagements have been constructive; and
  • Assessing alternatives to manage Sasol’s near-term debt covenant constraints, including a potential equity issue.

Sasol will update the market on the conference call at 15:00 SA on Tuesday, 17 March, with detail on the comprehensive package of actions. 

Shareholders are accordingly advised to exercise caution when dealing in the Company’s securities until a further announcement is made.

Fleetwood Grobler commented “The disruption in the global oil market, coupled with the ongoing impact of COVID-19 has significantly changed the outlook in just a few weeks. It is critical that we keep matters within our control by acting quickly and decisively so that stakeholders don’t lose sight of the significant underlying value in this business. We are therefore working towards a package of measures to ensure that the business is profitable even at low oil prices and that we continue to have a strong balance sheet to support it.” 

Conference call details:




Tuesday, 17 March 2020


Dial-in numbers

Replay numbers

South Africa


+27 11 535 3600

+27 10 500 4108

United Kingdom


+44 (0) 333 300 1418

+44 (0) 203 608 8021

United States (ET)


+1 508 924 4326

+1 412 317 0088

Other countries


+27 11 535 3600

+27 10 500 4108





The transcript will be available from March 20, 2020 at 6:00 PM (SA) on Sasol’s investor relations website.

For online participation, please register on the following link:





If you have any questions, please email: investor.relations@sasol.com or contact Feroza Syed at +27 10 344 9280.


Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”.