DISTRESS DENIAL
PetroSA shrugs off loss, looks to turnaround
PetroSA has suffered huge losses over the past three years and has a projected loss of R2.2bn for the year to March 2017
PetroSA says it has an adequate cash balance to carry on with its normal trading activities, denying the existence of any plans to place the state-owned company in business rescue. PetroSA has suffered huge losses over the past three years and has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year. Last week, Business Day reported that the PetroSA board had approached its holding company, the Central Energy Fund (CEF), in January and asked it to place the company in business rescue. A senior official confirmed the request to Business Day and that the CEF had rejected it. At the time PetroSA said it did not want to comment on internal matters. However, on Friday the company sent out a statement denying media reports that it was in financial distress. "Current assets and cash flow projections show that the company will have adequate cash resources for the business to carry on with its normal trading a...
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