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Sasol delays results due to problems in the US project

south AfricaSassol delayed the release of its annual financial results on Friday due to possible "control weaknesses" in its US ethane smash project, sending more than 15% stake in the chemical and energy company.

Sasol said his auditors will have to look at an independent report that the board assigned to its Lake Charles Chemicals Project (LCCP) and therefore expects to announce fiscal 2019 results on September 19, instead of August 19.

"Management and the board will evaluate such weaknesses in control and identify whether additional corrective action is needed," the company said in a statement without providing further details.

Read: Sasol shares 12%, as the Lake Charles project costs a balloon

The company raised its estimated cost in May by about $ 1 billion after a review by the new project management that revealed gaps such as duplicate loans and neglected contracts, adjustments for potential insurance claims, rebuilding orders and other repairs and repairs.

The company said it still expects LCCP spending guidance to reach between $ 12.6 billion and $ 12.9 billion, but now expects full production of the project to be delayed until around August 26 by previous management from late July after a technical challenge associated with a large heat exchanger.

The Louisiana project, which will convert natural gas into an ethylene plastic compound, was initially expected to cost $ 8.9 billion, with delays and cost increases.

Sasol, which is slowing its performance for the first time, said it expects guidance in July – to grow annual basic earnings per share (heap) between 1% and 11% – to remain the same.

Heps is the main measure of profit used at south Africa which removes certain disposable items.

Shares in Sasol, the world's largest producer of coal motor fuel, fell 12.3% to R244 at 0740 GMT after trading at R233.93.

At 12:28 Sasol was trading at R259.01, down 6.88%.

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