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The company said it would donate 33% of Grobler’s salary for three months to a fund established by the government to support the fight against COVID-19.
A file image shows the Sasol logo at its Johannesburg headquarters. Image: AFP
JOHANNESBURG – Sasol expects a loss at its Lake Charles Chemicals Project (LCCP) this year and will cut the pay of its CEO and other management to protect its balance sheet, the petrochemicals maker said Thursday.
CEO Fleetwood Grobler will donate 33% of his salary for three months starting in May and will have a 20% salary cut for five months through December, director fees will be reduced by up to 40%, and committee leadership executive and junior management will take pay cuts for 8 months, Sasol said.
“These measures are necessary to help protect the company’s balance sheet and liquidity until at least the end of fiscal year 2021,” Sasol said, citing the impact of the coronavirus outbreak.
The company said it would donate 33% of Grobler’s salary for three months to a fund established by the government to support the fight against COVID-19.
The company also cut its expectations for core earnings from the Lake Charles Chemicals Project (LCCP) after a drop in oil and chemical prices and lower global demand due to the spread of the coronavirus.
A loss in earnings before interest, taxes, depreciation and amortization (EBITDA) of LCCP of $ 50- $ 100 million is expected for the financial year versus the previous guidance of a profit of up to $ 100 million.
Investors have been concerned about the company’s debt, largely due to delays and cost overruns at the Louisiana-based LCCP.
The world’s leading maker of coal engine fuel, implemented measures in March to improve its liquidity in a low oil price environment, including finding a partner for LCCP, asset sales and a potential $ 2,000 rights issue. millions.
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