Two years in the past, Sasol (#3) skilled unprecedented headwinds triggered by the Covid-19 macrofinancial shock and a collapse in oil and chemical substances costs. Combined, these elements positioned stress on the worldwide chemical substances and power firm’s extremely leveraged steadiness sheet.
Sasol’s share value went right into a tailspin. The market capitalisation of the Johannesburg Stock Exchange-listed chemical substances producer dropped from R221bn ($15bn) to R83bn.
The troubles on the US-based Lake Charles Chemicals Project (LCCP) – informally known as the ‘LCCP disaster’ in South Africa – loomed massive for Sasol. The LCCP was stricken by price overruns and introduced sizable debt, however its items suffered delays earlier than coming on-line. The mission drew the ire of shareholders and invited scepticism and scrutiny from the market.
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