Mega-mess: The huge promise Sasol couldn’t keep


Mega-mess: The huge promise Sasol couldn’t keep

The cost of its US chemicals project has ballooned alarmingly - but this isn't the biggest disappointment

BusinessLIVE reporter

When Sasol said its ambitious Lake Charles Chemicals Project in the US had run $1.1bn over budget, it took shareholders by surprise, causing the share to plunge as much as 15%. 

But the market’s deep disappointment ought to be less about the price – even though it has now ballooned over 45% of its original cost estimate – and more about how management continued to promise something they could not deliver.

Sasol’s final investment decision in 2014 pegged the project cost at $8.9bn and said it would start operating in 2018...

This article is reserved for Sunday Times Daily subscribers.
A subscription gives you full digital access to all Sunday Times Daily content.

Sunday Times Daily

Already subscribed? Simply sign in below.

Questions or problems?
Email or call 0860 52 52 00.

Next Article

Omnia misled investors on rights issue, says analyst

By Siseko Njobeni and and Nick Hedley
3 min read

Previous Article