Sasol share surges despite more rating cuts
Positive market reaction is due to producer’s ability to secure oil hedging above current prices, analyst says
31 March 2020 - 19:41
Sasol shares jumped after the synthetic fuel and chemicals producer said it has used hedges to lock in oil prices until end-June and that its operations are continuing in the wake of the Covid-19 pandemic and the government-imposed lockdown.
The company, which has lost about 90% of its market value in 2020 so far, said the hedging programme, which will reduce its exposure to any further oil price slides until June, will be set at about $32 (R568) per barrel. Brent crude fell to 18-year lows below $20 a barrel this week...
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