The Board of Petro SA, said there were no plans to place the state oil company under business rescue.
Petro SA was Reacting to a recent media reports that it had asked the Central Energy Fund to place it under business rescue.
But, in a statement Friday, the Petro SA Board said that it rejected the media reports, adding that its “financial year-end reflected an adequate cash balance.”
Petro SA said that current assets and cash flow projections show that the company will have adequate cash resources for the business to carry on with its normal trading activities and meet its financial obligations for the foreseeable future.
“The present position of the company is that it is not in financial distress,” said the Petro SA Board.
“Current assets and cash flow projections show that the company will have adequate cash resources for the business to carry on with its normal trading activities and meet its financial obligations for the foreseeable future,” it said.
The company is planning for the scheduled maintenance shutdown of the Mossel bay refinery towards the end of 2017.
“PetroSA wishes to assure South Africans and our various stakeholders that as the Board and its employees we are committed to the sustainability, turnaround and long-term growth of the company. We are confident that the shareholder will give the necessary support, where appropriate, to ensure that we return the company to its former glory.
