South African petrochemical firm Sasol said on Monday it has decided not to pursue a rights issue of up to $2 billion after significant progress in its turnaround strategy. The world’s top manufacturer of motor fuel has been battling high debt, lower oil and chemicals prices and tepid fuel demand amid the coronavirus crisis, forcing the company to sell assets and restructure parts of its business. “A decision was made not to pursue a rights issue given the current macro-economic outlook, and the significant progress made on our response plan initiatives,” the company said. Last year, Sasol said it would issue up to $2 billion of shares in the second half of 2021 - what could have been among the country’s largest rights issues in decades - in an effort to help it tackle its debt. The company said it was able to repay around 28 billion rand of debt in the six months ended December 2020, despite low crude oil prices, softer chemical prices, plant downtime and the COVID-19 crisis impacting cash flow. Sasol also reported half-year core headline earnings per share (HEPS), which takes into account its black empowerment transaction and losses from the ramp-up phase of its U.S LCCP Base Chemicals business, down 15% at 7.86 rand, compared with 9.25 rand a year earlier. While adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) - a measure of operational profit - fell 6% to 18.608 billion rand, weighed down by a 23% decrease in the rand-per-barrel oil price during the period. “This achievement is as a result of a strong cash cost, working capital and capital expenditure performance in response to the challenging environment,” Sasol said. Chemical company LyondellBasell Industries had agreed last year to acquire a 50% stake of Sasol’s base chemicals business at Lake Charles for $2 billion and operate the new joint venture. ($1 = 14.7297 rand)