EDITORIAL: Sasol overspent and overpromised
The market’s deep disappointment at Lake Charles overruns ought to be less about the price and more about how Sasol’s management continued to promise something they could not deliver
03 June 2019 - 05:10
When Sasol said that 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...
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