Company News

Sasol expects 2020 EBITDA loss from U.S. project as coronavirus hurts demand

JOHANNESBURG, April 23 (Reuters) - South African petrochemicals giant Sasol Ltd has cut its EBITDA expectations from its Lake Charles Chemicals Project (LCCP) following a drop in chemicals prices, an oil price drop and lower global demand due to the spread of the coronavirus.

Sasol on Thursday revised its expectation for LCCP’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) contribution to a loss of $50-$100 million for the financial year 2020, versus a previous guidance for a positive contribution of as much as $100 million.

Investors have been concerned by the company’s debt, largely due to delays and cost overruns at the Louisiana-based LCCP. (Reporting by Tanisha Heiberg; Editing by Himani Sarkar)