PetroSA Expects Profit Drop on Plant Shutdowns, Sake24 Reports

PetroSA expects to earn a profit of 198 million rand ($25 million) in the current financial year, from an estimated 1.4 billion rand in the previous fiscal year, Sake24 reported, citing Chief Financial Officer Nkosemntu Nika.

The South African state-owned oil and gas company plans to shut various plants for upgrades and maintenance, the Johannesburg-based newspaper said, citing Nika. It will also spend on Project Ikwhezi, its offshore gas exploration project to find new feedstock for its Mossel Bay plant, and the design of the planned Mthombo refinery, it said.

Project Ikwhezi is expected to produce its first gas in the second half of 2013, the newspaper said. PetroSA’s expected profit of 1.4 billion rand for the 2011-12 year has not yet been audited, the newspaper reported Nika as saying.

To contact the reporter on this story: Jana Marais in Johannesburg at jmarais@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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