THAT sinking feeling
How Sasol got Lake Charles so wrong
Shareholder Visio was assured three months ago there was proper oversight of Lake Charles. Not so much, it turns out
Sasol’s acknowledgment that its massive Lake Charles Chemical Project (LCCP) will require a further $1bn due to mistakes and cost overruns sparked a savage response from the market. It was to be expected, especially so late in the game, with 96% of the project completed.
In response to the dismal update, Sasol’s market value has fallen by R35bn — a brutal knock, given that Sasol warned of an escalation in costs of R14.75bn. Now, Sasol says its total investment in Lake Charles will be in the range of $12.6bn-$12.9bn — representing about 75% of Sasol’s market value...