Sasol warns of lower EPS, Lake Charles project ramping up
The industry has generally posted weaker earnings this year due to lower selling prices amid subdued economic growth.
The NYSE and JSE listed company added that it has also arranged to enhance liquidity during the peak gearing phase of the Lake Charles project in the US, as it ramps up. To that end, it has put in place a $1 billion syndicated loan facility with Bank of America, Citi, Mizuho and MUFG of up to 18 months and two bilateral facilities with a combined quantum of $250 million, and a tenor of two years.
The 1.5 million tons/year ethane cracker at its Lake Charles Chemicals Project (LCCP) in Louisiana, the US, was brought online in August this year. The LLDPE unit was the first derivative unit to achieve beneficial operation in February 2019 and EO/EG unit became the second LCCP facility to come online in June 2019.
The remaining four units are scheduled to come online between November 2019 and the first quarter of 2020.
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