Sasol jumps as much as 50% as oil price recovers a little
The embattled chemicals and energy group’s share price rose as much as 50% at one point on Friday, before paring gains
Shares in Sasol rose as much as 50% on Friday, on track to snap a seven-session losing streak, a day after the synfuel maker said it is working on measures to to address pressure on its balance sheet.
The Sasol share price has still lost more than three-quarters of its value over the past week, battered by an oil price crash and concerns over its debt levels.
Sasol, which produces synthetic oil from coal, said later on Thursday that it would accelerate and expand its asset disposal programme and consider a rights issue as part of a package of measures to ensure the company is profitable, even with oil prices at their recent lows.
This comes amid concerns about cost overruns at its huge Lake Charles chemical project in the US, as the threat to its earnings from an oil-price war between Russian and Saudi Arabia.
In morning trade on Friday, Sasol had pared gains, and was up 5.37% to R39.32. It earlier reached a high of R55.84.
Brent crude was up 5.72% to $34.56 a barrel, but the oil price has still fallen 47.70% so far in 2020.
With Lisa Steyn