Sasol deepens investigation into Lake Charles problems

(Courtesy Sasol)

Sasol has delayed its annual financial results for a second time to allow for a deeper  investigation into what went wrong during construction of its $13 billion Louisiana chemical project.

The company now expects to publish results no later than Oct. 31, compared with a previous date of Sept. 19, which was a month later than originally planned.

Sasol’s board is commissioning additional investigation as part of an independent review—this time into “certain aspects contemplated under the original scope” of the Lake Charles project, according to an announcement issued last week. The new probe is focusing, too, on the company’s technology division and will look at whether the “root cause” of cost overruns was present in the 2018 financial year.

The company says nothing has come to light that will require a revision of its earnings statement. Sasol said in July that adjusted earnings probably declined by as much as 14% in the year through June, reflecting the problems in Lake Charles.

Read the statement.