LAKE CHARLES PROJECT
Sasol’s latest cost overrun is reckless, say investors
As recently as February, Sasol warned that the project had risen to $11.8bn just four months after telling investors that it was on track to cost $11.13bn
Another cost blowout at Sasol’s ambitious Lake Charles Chemicals Project of more than $1.1bn (R15.8bn) — in just three months — has sparked investor fury over management’s "reckless" use of shareholder funds.
The shock news hit the market on Wednesday when Sasol announced that the huge Louisiana chemicals project would cost between $12.6bn and $12.9bn, almost 45% higher than its initial estimate of $8.9bn at the time the investment was announced in 2014.