By Adria Calatayud
Sasol Ltd. said Monday that it swung to a net loss for fiscal 2020, as the collapse in oil prices and the coronavirus pandemic led it to book a major write-down, and warned of continuing uncertainty and volatility.
The South Africa-based petrochemical and energy company reported a net loss of 91.11 billion South African rand ($5.24 billion) for the year ended June 30 compared with a profit of ZAR4.30 billion for the year earlier. This included impairments of ZAR111.6 billion, mainly related to a write-down of its base chemicals portfolio, amid unprecedented low oil prices and weaker demand for products, the company said.
Turnover for fiscal 2020 was ZAR190.37 billion, down from ZAR203.58 billion in the prior year, Sasol said.
The company said it expects oil prices will remain low for the next 12 to 18 months as the impact of the pandemic becomes better understood. The current economic climate remains highly volatile and uncertain, Sasol said.
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