“Given the steep decline in fuels demand, a decision was also made by Sasol to reduce daily production rates at our Secunda Synfuels Operations (SSO) by approximately 25% to meet the current market demand, while maintaining optimal inventory levels,” said the company, whose major shareholders include the South African Government Employees Pension Fund, the Industrial Development Corporation and private fund managers.
Sasol, which has also been hit hard by the recent plunge in oil prices, now expects liquid fuels sales volumes to be approximately 50 – 51 million barrels for FY 2020, lower than its previous guidance of 57 – 58 million barrels.
“We will maintain these production rates until further notice, while carefully monitoring the supply and demand balance. A further reduction in production rates may be required depending on further developments in the fuels market.”
Despite the suspension of production at the Natref refinery and lower production rates at SSO, the country’s current demand for fuels and chemicals, including sanitisers, would be met, Sasol said.
