PetroSA’s debt levels to rise materially as it seeks to fund capex plan, downstream entry
South Africa’s national oil company PetroSA has indicated that it is likely to take on significant levels of debt in the coming years to enable it to finance various capital programmes, as well as its proposed acquisition of downstream operations.
The State-owned group reported a drop in net profits from R1.2-billion in 2012 to R593-million this year, but stressed that its financial position remained robust, with total assets of R34.2-billion and a cash balance of R7.4-billion.
However, acting CFO Webster Fanadzo cautioned on Thursday that the company’s aggressive capital expansion programmes together with a proposed downstream acquisition would result in “financial pressures” and an increase in loan financing.
PetroSA’s sole shareholder, the Central Energy Fund, confirmed recently that a downstream entry was being prioritised, amid ongoing reports that PetroSA was in advanced negotiations with Petronas regarding the acquisition of the Malaysian oil group’s 80% interest in Engen.
However, PetroSA was also investing in projects to secure additional feedstock for its gas-to-liquids (GTL) refinery in Mossel Bay, with R3.7-billion spent in the 2013 financial year alone on Project Ikhwezi, an offshore gasfield development.
The company was also working on a liquefied natural gas (LNG) import solution to bolster GTL security of supply over the longer term and planned to make a final investment decision on a $375-million to $510-million LNG import facility in the fourth quarter of 2014.
It was also participating in a study of a 300 000 bl/d Eastern Cape crude refinery project, dubbed Project Mthombo, which could involve an investment of between $9-billion and $11-billion.
CEO Nosizwe Nokwe said the group’s bottom line would diminish further in the short term as a result of higher expenditure on projects, but that she was confident that the investments would deliver sustainable returns over the longer term.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Astore Keymak is one of South Africa’s leading suppliers of high-quality Thermoplastic Pipeline Systems, with branches in the major provinces.
VISIT SHOWROOM
We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
