Big an­nounce­ment

Finweek English Edition - - SIMON SAYS -

The t r ad­ing up­date f rom Sa­sol* ini­tially got the mar­ket all ex­cited, which pushed the stocka few per­cent­age points higher, un­til some san­ity re­turned. Sa­sol an­nounced that it would be fo­cus­ing on costs in an at­tempt to con­serve cash and that it has “de­cided to de­lay the fi­nal in­vest­ment de­ci­sion on its large- scale, gas-toliq­uids plant in Louisiana”. Nei­ther should be a sur­prise as this is ex­actly what a share­holder would ex­pect from a com­pany’s man­age­ment team when rev­enue col­lapses, as we’ve seen with the re­cent mas­sive sell-off in oil. * The writer owns shares in Sa­sol, BHP Bil­li­ton and Fa­mous Brands.

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