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.

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