Mon, 13 Jul 2020

South Africa's state-owned Central Energy Fund is considering buying assets that have been put on the block by fuel and chemical maker Sasol as it seeks to restore itself to profitability.

The CEF "needs to put an end to the losses" at its units, including oil company PetroSA, Chairman Monde Mnyande told lawmakers on May 12.

"We are looking at those and discussing very strongly with Sasol" what assets that we can acquire, he said.

It remains unclear how the CEF will fund any deals - its balance sheet is already stretched, and the government has said it can't afford to provide additional funding to state companies.

PetroSA has been the biggest drain on the CEF. It last made a profit in 2013, and lost R14.6 billion rand in the year through March 2015 - a record for any state company at the time - mainly because of an impairment on its offshore Ikhwezi natural-gas project.

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