Sasol Crash: Government, PIC loses about R200bn in one week

CAPE TOWN – Multinational chemicals and energy giant Sasol this past week suffered the worst rout in value than any other JSE-listed company after Steinhoff – now down almost 95 percent since last year and valued at about R23 billion from R450 billion.

Sasol’s share price has steadily declined due to cost overruns and operational problems at its R200 billion Lake Charles chemicals project in the United States. According to reports, the project has left it with a debt burden of more than R120 billion.

The company’s near demise has cost the government more than R200 billion through a 13.5 percent interest by the Government Employees Pension Fund (GEPF) and an 8.5 percent stake by the Industrial Development Corporation (IDC).

But then the unreal way that South Africa seems to operate is that this huge loss of value is pretty much all in a day’s work as it shifts its focus to fledgeling companies mentioned in the report on the Commission of Inquiry into alleged impropriety at the Public Investment Corporation (PIC).

This is not at all to suggest that the Sasol rout has not been covered because indeed it has been covered, albeit based on the global pandemic COVID-19 and the Saudi-Russia oil-price war sinking the oil price, but it seems no one cares to look at what truly lies beneath.