Sasol consults workers on retrenchments
by GENEVIEVE KGAFE
VANDERBIJLPARK – SASOL, the integrated energy and chemical company, is reviewing its business as it grapples high debt levels, falling oil and chemical prices as well as low demand due to the coronavirus (COVID-19).
It plans to cut jobs and end West African oil operations as part of the business revamp. Sasol is this week to begin consultations with the workforce on possible retrenchments after resolving on an organisational shake-up that will result in two core businesses.
It has also entered a deal with lenders to relax borrowing rules.
Lenders have agreed to waive the group’s debt covenant for June 2020, and lift the December covenant from three times to four times net debt to earnings before interest, taxation, depreciation and amortisation (EBITDA).
“This additional flexibility is subject to conditions which are customary for such covenant amendments and consistent with Sasol’s broader capital allocation framework,” Sasol stated.
The company was reportedly struggling even before the global COVID-19.
The difficulties are linked to its multibillion-rand investment in an ethane cracker and chemical plant in Lake Charles, Louisiana in the United States.
Its shares have fallen by more than half since the start of the year.
– CAJ News
