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AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE relating to its share of ethylene producing assets oil and gas companies operating in the country.
in the United States. Once the difficult times are over, we remain con-
Sasol issues trading alised losses of ZAR7.4bn ($420mn) on the people of Equatorial Guinea will be able to work
fident that oil and gas operators and all of the
Other non-cash adjustments include: Unre-
statement for the financial translation of monetary assets and liabilities due together and getting back to work and putting
to the 23% weakening of the closing rand/US the economy back on a growth trajectory,” he
year ended June 30, 2020 dollar exchange rate; and Unrealised losses of added.
ZAR4.8bn ($270mn) on the valuation of finan-
From the beginning of the crisis, the MMH
Sasol will announce group financial results for cial instruments and derivative contracts. has recognised the need to double efforts on
the year ended June 30, 2020 (2020 financial Depreciation of ZAR3.9bn ($220mn) attrib- tackling ongoing industry challenges, and find-
year), that were impacted by the COVID-19 utable to those Lake Charles Chemicals Project ing new ways to do business to ensure that Equa-
pandemic and a severe decline in crude oil and (LCCP) units that reached beneficial operation. torial Guinea remains competitive. While the
chemical product prices. The impact of the weak The financial information on which this trading Year of Investment 2020 was recently postponed,
macro-economic environment was partly miti- statement is based has not been reviewed and it has already secured tremendous interests from
gated by a strong cash cost, working capital and reported on by the Company’s external auditors. local and international actors, with several pro-
capital expenditure performance. Sasol, August 11 2020 jects such as the Alan gas monetisation and the
Shareholders are advised that, for the 2020 modular refinery moving forward.
financial year: The loss per share is expected to “It is important that we plan our recovery
be between ZAR146.75 ($8.37) and ZAR148.15 POLICY efforts hand in hand with the industry so that we
($8.45) compared to the prior year earnings can move quickly and efficiently when market
per share of ZAR6.97 or $0.40 (representing Equatorial Guinea continues conditions stabilise. The recovery of the oil sec-
a decline of more than 100%); headline loss tor and the resumption of key projects under the
per share is expected to be between ZAR8.72 proactive engagement to Year of Investment is what will open up new jobs
($0.50) and ZAR14.86 ($0.85) compared to the creation opportunities and create value for our
prior year headline earnings per share (HEPS) support oil sector economy and our investors,” concluded Gabriel
of ZAR30.72 or $1.75 (representing a decline of Mbaga Obiang Lima.
more than 100%); and core HEPS is expected to In order to maintain the engagement with the oil From rallying to the global OPEC production
be between ZAR11.02 ($0.63) and ZAR18.56 sector of Equatorial Guinea in light of the ongo- cuts to signing a Ministerial Order extending
($1.06) compared to the prior year CHEPS of ing crisis of COVID-19 and challenging market all exploration blocks, Equatorial Guinea has
ZAR37.65 ($2.15). conditions, Gabriel Mbaga Obiang Lima, Minis- quickly reacted to the COVID-19 pandemic and
Sasol’s adjusted earnings before interest, ter of Mines and Hydrocarbons (MMH) recently its impact on its oil industry. Since the beginning
tax, depreciation and amortisation (adjusted met with an industry delegation in Malabo. of the crisis, several such measures have been
EBITDA) is expected to decline by between Accompanied by Santiago Mba Eneme discussed and considered between the MMH
17% and 37% from ZAR47.6bn ($2.71bn) in Nsuga, the Director General of Hydrocarbons, and the oil industry to continue making the
the prior year, to between ZAR30bn ($1.71bn) the Director General of State Companies and country’s operating environment conducive for
and ZAR39.5bn ($2.25bn). This results from the Director General of National Content, the business.
a 18% decrease in the rand per barrel price of Minister met with senior representatives of Exx- African Energy Chamber, August 11 2020
Brent crude oil coupled with much softer global onMobil, Marathon Oil Corp, AMPCO, Noble
chemical and refining margins impacting our Energy, Trident Energy, EG LNG and Kosmos
gross margins adversely, especially during the Energy. Gabriel Mbaga Obiang Lima thanked all
second half of the 2020 financial year. The cash operating companies for their constant support
fixed cost performance for the second half of the and interventions during the pandemic, espe-
year improved markedly, partly offsetting the cially for equipping the Baney Epidemiologi-
impact of lower gross margins. cal Laboratory with the required equipment to
The loss per share was as a result of the prevent and reduce the spread of coronavirus in
decrease in the adjusted EBITDA as well as Equatorial Guinea.
notable non-cash adjustments to earnings. The Equally important, the Minister received
largest contributor relates to impairments of a letter from the industry regarding ongoing
a number of cash generating units following concerns over forex regulations imposed by the
the decline in the long-term macro-economic Bank of Central African States (BEAC). On this
outlook, and the fair value impact following occasion, he insisted that mitigating the eco-
the commencement of partnering discussions nomic and business impact of the COVID-19
for our Base Chemicals assets in the United pandemic remained a priority in order to ensure
States. Aggregate pre-tax impairment charges sector recovery and investments across the val-
of approximately ZAR112bn ($6.38bn) have ue-chain. “COVID-19 is a major concern for the
been recognised in the 2020 financial year. The Government of Equatorial Guinea, and listening
impairments and fair value adjustments have to the concerns of local and international private
impacted the reporting segments as follows: companies operating in the country is for us a
Energy ZAR12.5bn ($710mn) across the port- way to ensure industry growth and sustainabil-
folio; Base Chemicals ZAR71.3bn ($4.06bn), ity,” Gabriel Mbaga Obiang Lima said.
primarily in the United States; and Performance “The measures we have put in place will sup-
Chemicals ZAR27.7bn ($1.58bn), primarily port all citizens of Equatorial Guinea, including

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