CAPE TOWN - State oil company PetroSA has denied reports that it’s on the skids and wants to file for business rescue.
The board says there's also no truth to reports that it's contemplating shutting down its Mossel Bay refinery.
In a statement, the PetroSA board says it's not in financial distress and that it has a turnaround plan to find alternative gas fields in the wake of unsuccessful attempts that contributed to a whopping R14,6 billion loss in 2014/15.
A loss of R2.2 billion is projected for the past financial year.
But PetroSA spokesperson Thabo Mabaso says the company can meet its abandonment liability of about R9 billion if it needed to.
“Yes, the company is facing serious fuel stock challenges, but we have put aside some cash to respond to abandonment liability issues.”
The company says it will only be shutting down its Mossel Bay refinery for about a month at the end of the year for routine maintenance.
The company adds its current assets and cash flow projections show that it has adequate cash resources for the business to carry on with its normal trading activities.
(Edited by Shimoney Regter)