Sasol Tempers Return Expectations for $11 Billion Project
- Rate of return on U.S. project lowered on polyethylene margins
- Company disagrees with SARS on 11.6 billion rand tax bill
Sasol Ltd. branding is displayed at the company's offices in Johannesburg, South Africa, on Monday, Sept. 13, 2010. Sasol Ltd., the largest producer of motor fuels made from coal, beat analysts' earnings estimates and raised its dividend payment by 24 percent after increasing production and cutting costs.
Photographer: Nadine Hutton/BloombergSasol Ltd. lowered estimated returns at its $11 billion Lake Charles chemicals project in the U.S. and said it’s disputing a revised tax bill in South Africa.
Sasol, the world’s biggest producer of liquid fuel from coal, projects an internal rate of return of 7 percent to 8 percent at Lake Charles, which will convert ethane into plastics and other products. The range is based on “conservative” ethane prices and compares with a previous estimate of about 8 percent, co-Chief Executive Officer Steve Cornell told reporters on a call Monday.