Governance concerns as Sasol results delayed again
A further delay in the release of Sasol’s year-end results indicates greater management and governance risk, and suggests potential disclosure restatements in last year’s financial statements, says S&P Global Ratings.
The company rates Sasol (BBB-/Stable/A-3) two notches above South Africa (BB/Stable/B).
The release of Sasol’s 2019 financial year results was initially delayed from August 19 to September 19, and was later delayed again until October.
Further InvestigtionThe further delay follows the board’s decision to commission additional work and give time for further investigation into particular points raised in the original board-commissioned independent review of recent cost and schedule changes for the Lake Charles chemicals project (LCCP).
The investigation began after Sasol announced further increases in May to the capital cost estimate. A preliminary report was submitted to the board on August 14.
The additional investigation includes assessing if any potential control weakness identified in the preliminary report and the root cause for the changes in the cost and schedule estimate were present in the previous fiscal year.
In the August and September announcements, Sasol said it expected no change to the earnings guidance in the trading statement of July 25, and also confirmed its previous LCCP capital cost guidance of $12.6-billion to $12.9-billion.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
