THE UGLY

Finweek English Edition - - THE WEEK -

The Sa­sol share price dropped the most in 17 years in trad­ing on 7 June, slip­ping 11% after the group warned that its profit for the year to end June will drop by as much as 30%. The de­cline was mainly due to im­pair­ments of a whop­ping R11.5bn on its shale gas as­sets in Canada. Sa­sol had more bad news: its new eth­ane cracker in Louisiana, which is about 40% com­plete, will now cost an es­ti­mated $11bn, rather than the $8.9bn ini­tially bud­geted for, while con­struc­tion will take longer than ex­pected. Not a great way for CEO David Con­sta­ble to end his ten­ure at the petro­chem­i­cal gi­ant, but at least he’s not leav­ing empty-handed, re­ceiv­ing a pay cheque to­talling R187.3m for the four years to end June 2015.

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