• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Business

Sasol cuts production, sales target on coronavirus impact

8 April 2020, 9:01 PM  |
Reuters Reuters |  @SABCNews
A man walks past South African petro-chemical company Sasol's synthetic fuel plant in Secunda, north of Johannesburg, in this picture taken March 1,2016.

A man walks past South African petro-chemical company Sasol's synthetic fuel plant in Secunda, north of Johannesburg, in this picture taken March 1,2016.

Image: Reuters

A man walks past South African petro-chemical company Sasol's synthetic fuel plant in Secunda, north of Johannesburg, in this picture taken March 1,2016.

South African petrochemicals giant Sasol Ltd on Wednesday cut its guidance for synthetic fuel production and liquid fuel sales for this financial year due to a three-week nationwide lockdown linked to coronavirus.

Sasol is now expecting to produce approximately 7.3-7.4 million tons of synfuel against the previously guided range of 7.7–7.8 million tons, the company said in a statement to the Johannesburg Stock Exchange.

It is also targeting sales of 50–51 million barrels of liquid fuel for the financial year 2020, against 57–58 million barrels previously, it said.

Synfuel or synthetic fuel is a form of liquid fuel made from coal in South Africa. Sasol is the world’s biggest producer of motor fuel from coal.

South African President Cyril Ramaphosa imposed a nationwide lockdown at the end of March to contain the spread of the deadly coronavirus, which has already infected 1,749 people in the country and killed 13.

In the video below, SABC News reports that the World Bank is to release report on Economic Impact of COVID-19 in Africa:

The lockdown, which prompted rating agency Moody’s to downgrade the country’s sovereign rating to junk, crashed domestic demand at a time when the economy had already slipped into a recession.

It is projected to contract further in the current financial year.

“Sasol’s management team is in the process of proactively identifying further measures to provide an additional buffer against short-term volatility,” said the company in its statement, referring to the fall in demand in the country.

The group, which is also facing high debt levels and falling oil and chemical prices, said it has decided to suspend production at its inland crude oil refinery Natref from April 9.

“A decision was also made by Sasol to reduce daily production rates at our Secunda Synfuels Operations (SSO) by approximately 25%,” it said.

A further reduction in rates may be required depending on further developments in the fuels market, the company added.

However, Sasol said despite the suspension of output at the Natref refinery and lower production rates at SSO, the country’s current demand for fuels and chemicals, including sanitisers, will be met.

It had said on March 31 that its full-year results could be hit by potential disruptions to production, supply chains and construction as the coronavirus continued to spread across the world.

Share article
Tags: PetrochemicalsSasol LtdJohannesburg Stock ExchangeCoronavirusLockdown
Previous Post

Soccer fans wait with bated breath to see how the PSL will decide to end the season

Next Post

Congo president’s chief of staff arrested amid graft probe

Related Posts

Post Office at a mall

Best option for Post Office is to be put under business rescue: Gungubele

6 June 2023, 4:40 PM
A person works at ''The Faktory", a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021.

SA economic growth at 0.4% for first quarter of 2023: Stats SA

6 June 2023, 2:22 PM

Western Cape launches booster fund to increase exports

6 June 2023, 12:44 PM
Karadeniz Powership Orhan Bey, an electricity-generating ship from Turkey, docked at the port of Jiyeh, south of Beirut, Lebanon August 10, 2017.

Karpowership contracts will be reduced from initial 20-year term: Ramokgopa

6 June 2023, 10:17 AM
Prasa Board Chairperson, Leonard Ramatlakane during an oversight visit at the reopened Naledi to Johannesburg train route on December 15, 2022.

Leonard Ramatlakane fired as Prasa’s board Chair

6 June 2023, 10:02 AM
Power lines are pictured during the sunset.

Eskom suspends rolling blackouts until 4pm

6 June 2023, 9:45 AM
Next Post
Kamerhe is no longer eligible to run for the Presidency after Saturday's conviction.

Congo president's chief of staff arrested amid graft probe

Most Viewed

  • 24hrs
  • Week
  • Month
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Slain teen Palesa Malatji’s family calls for death sentence to be reinstated
  • Unisa suspends registrar for various breaches of policy
  • Limpopo district embroiled in fraudulent travel claims
  • Tina Joemat-Pettersson has passed away
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Deadline for Zimbabwean Exemption Permits draws near
  • Reserve Bank expected to increase repo rate on Thursday
  • Zimbabwe receives 18 helicopters from Russian Federation
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Unisa suspends registrar for various breaches of policy
  • Orlando Pirates player Thembinkosi Lorch found guilty of assault
  • Construction of softball stadium halted in Limpopo
  • SA has lost a dedicated leader in Joemat-Pettersson: Ramaphosa
  • Limpopo ANC PEC orders municipalities to recover lost public funds in VBS scandal

LATEST

Former South African President Jacob Zuma
  • Politics

Judgment expected in Downer/ Maughan application against Zuma’s private prosecution


A firefighter walks near cars damaged during a massive Russian drone strike, amid Russia’s attack on Ukraine, in Kyiv, Ukraine May 30, 2023.
  • Africa

African Peace Initiative for Ukraine/Russia war ready to depart: Ramaphosa


Manchester City manager Pep Guardiola
  • Sport

Man City must disregard history in Champions League final: Guardiola


A hand with the words STOP GBV
  • Sport

[Graphic content] Former Banyana player’s sister set alight allegedly by her boyfriend


Chiefs head coach Arthur Zwane
  • Sport

Zwane expected to remain Chiefs coach despite dismal season


Thembinkosi Lorch during a match
  • Sport

Orlando Pirates player Thembinkosi Lorch found guilty of assault


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous PSL Soccer fans wait with bated breath to see how the PSL will decide to end the season
Next Congo president’s chief of staff arrested amid graft probe