SEKGABO MOLELEKOA: Sasol’s Lake Charles project is proving to be painful for investors
A delay in releasing results due to an independent review of the project’s execution and technical issues is the latest bad news
The market is not happy with Sasol. Its Lake Charles chemicals project has been a thorn in the side of investors since early indications that it would not meet deadlines and that costs would overrun.
Sasol’s long-term price-to-earnings ratio has been roughly 10 and it was initially inferred by the market that if the project was successful it would place Sasol in the league of US chemical peers. Not so, as delay after delay has proven.