By Anthony O. Goriainoff 



  Sasol Ltd. said Thursday that it will discontinue all oil growth activities in West Africa, cut jobs and focus on its core portfolios of chemicals and energy as part of its new strategy. 


  The South Africa-based petrochemical and energy company, which is listed in Johannesburg and New York, said that the redesign of its organization to enable its sustainability at lower oil prices will have an impact on its workforce. It said it has issued notice to its representative trade unions in South Africa and added that it will follow a similar course in the other jurisdictions where it operates. 


  Sasol said that it has successfully ended discussions with lenders and that they have agreed to waive the covenant at June 2020, and lift the December covenant to four times net debt to earnings before interest, taxation, depreciation and amortization, from three times previously. 


  Liquidity headroom will remain above $1 billion, and it will reduce the size of its facilities as debt levels are reduced, while still maintaining a strong liquidity position. 


  The company said that in conjunction with these amendments, and in light of its two-notch credit rating downgrade earlier in 2020, the interest costs across its debt facilities will increase by around $40 million per year before any reduction in borrowings through any self-help measures or disposals. 


  Sasol said it was on track to achieve its self-help targets. The revision of its strategy aims to have a greater focus on enhanced cash generation, value realization for shareholders and business sustainability, it added. 


  Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com 


  Corrections & Amplifications


  This item was corrected at 0614 GMT to reflect that Sasol Ltd. is listed in Johannesburg and New York. The original version incorrectly said the company was listed in London in the second paragraph.