Petrochemical and energy giant, Sasol said today, it has recorded more than 500 COVID-19 cases at its domestic operations.
The company in a market update said the total number of COVID-19 infections within the group since the beginning of the pandemic has reached 774, with the majority of cases recorded in South Africa.
“There are 561 active cases and two COVID-19 related deaths which occurred in South Africa. The infected employees are receiving our full support. The increase in Sasol’s infection rates is in line with the trend in South Africa. Up to now, there has been no material impact to our operations,” Sasol said in a statement.
“The continuous increase in COVID-19 infections within Sasol could potentially impact our operations in the near-term. While we have implemented all regulatory requirements and have the necessary controls in place, we will continue to actively monitor and mitigate the impact.”
Meanwhile, Sasol said the remaining unit to come online at its Lake Charles Chemicals Project (LCCP) in Louisiana is likely to reach meaningful output levels by October, a month delayed from its prior guidance.
“Overall project completion was at 99% and capital expenditure amounted to US$12,7bn,” Sasol said. Delays in the mega LCCP project, in the US, which was initially anticipated to be built at a capital cost of $8.9 billion, has seen Sasol’s debt rise significantly over the years.
The group last year fired its co-chief executives Bongani Nqwababa and Stephen Cornell. This followed a forensic investigation into the delays and cost overruns at LCCP, which showed that the project management team reporting to the duo, had “acted inappropriately, demonstrated incompetence and were not transparent.”
The JSE-listed company has set a target of reducing its $9.5 billion debt to $4 billion by the end of its 2021 financial year.
