PetroSA denies business rescue allegations

State-owned oil and gas company PetroSA on Monday refuted claims that it had asked its holding company, the Central Energy Fund, to place it under business rescue, stating that it was not in “financial distress”.

It said media reports last week about the alleged request were “inaccurate and unfair [and] painted a negative picture”.

“The company's financial year-end reflects an adequate cash balance. 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 in a statement.

Further, on the claims that the company would be posting a R2.2-billion loss for the year ended March 31, following a R14.6-billion loss in the 204/15 financial year, PetroSA said it was still preparing its results for the financial year under review.