Per-Anders Pettersson/Getty Images
Industryweek 35743 Gettyimages 71007872
Industryweek 35743 Gettyimages 71007872
Industryweek 35743 Gettyimages 71007872
Industryweek 35743 Gettyimages 71007872
Industryweek 35743 Gettyimages 71007872

Sasol Met With Fund Managers as US Plant’s Costs Climbed

Aug. 20, 2019
The meetings began after Sasol raised the estimated cost of the project by $1 billion in May.

Sasol Ltd., South Africa’s biggest company by revenue, said it held meetings with shareholders as dissatisfaction grew over cost overruns at the $13 billion Lake Charles chemical project in the U.S.

The meetings began after Sasol raised the estimated cost of the project by $1 billion in May, having increased it only three months earlier, the company said in a response to questions. On Aug. 16, Sasol delayed its annual results, saying it hasn’t completed a review of the problems at the project. That prompted its shares to fall the most in 20 years on an intraday basis in Johannesburg.

“The chairman of the Sasol board of directors together with management has held meetings with a number of shareholders to hear their views, concerns and expectations,” the company said on Monday. “It would not be appropriate for Sasol to comment on behalf of our shareholders on their expectations.”

The meetings took place shortly after May 22 and no “additional, non-disclosed information” was provided, a spokesman added. No closed analyst calls have taken place, he said.

Problems at Lake Charles, in Louisiana, have hampered Sasol’s plans to expand internationally and to increase chemicals manufacturing alongside its core fuel-production business. The company’s market value has almost halved to 168 billion rand ($10.9 billion) over the past 12 months, making it the third-worst performer on an index of Johannesburg’s 40 biggest stocks.

Representatives of Allan Gray Ltd., which owns 3.4% of Sasol’s stock according to data compiled by Bloomberg, have met with Sasol’s board about the Lake Charles project, said Andrew Lapping, the chief investment officer of the Cape Town-based fund manager. He declined to comment on the talks.

Coronation Asset Management, South Africa’s second-biggest money manager by assets under management which owns Sasol stock, declined to comment.

Popular Sponsored Recommendations

Four Common OT Cybersecurity Pitfalls for Manufacturers

April 4, 2023
For the last six years, Dragos has leveraged their Professional Services team to develop an on-the-ground understanding of the realities facing the industrial community and to...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!