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
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...