Sasol Delays Results for Review of $13 Billion Investment
Added 08-16-19 07:04:02am EST - “(Bloomberg) -- Sasol Ltd. fell the most in 20 years in Johannesburg trading after postponing full-year results, saying it hadn't yet completed a review of problems affecting a giant chemicals project in the U.S.Sasol dropped as much…” - Finance.yahoo.com
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(Bloomberg) -- Sasol Ltd. fell the most in 20 years in Johannesburg trading after postponing full-year results, saying it hadn’t yet completed a review of problems affecting a giant chemicals project in the U.S.
Sasol dropped as much as 16%, the biggest intraday decline since September 1998, as the beleaguered Lake Charles project continued to sap investor confidence. Costs at the flagship development have swelled 50% from initial estimates to almost $13 billion amid weather delays and construction setbacks.
“The board has decided to delay the announcement of Sasol’s 2019 financial results until the independent review and external audit has been completed,” the company said Friday. “The board therefore expects to announce the 2019 financial results on Sept. 19,” a month later than planned.
The troubles at Lake Charles, in Louisiana, have hampered Sasol’s plans to expand internationally and to increase chemicals manufacturing alongside its core fuel production business. In May, the company pushed up the cost estimate for the project by $1 billion, having previously raised the budget just three months earlier.
The board received a preliminary report earlier this week following an independent review of the obstacles that have hampered Lake Charles, which “contains observations which point to possible LCCP control weaknesses,” Sasol said in a statement. It also announced a fresh problem, saying the start of an ethane cracker had been delayed by a technical glitch. An update on the unit is expected by Aug. 26.
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