JOHANNESBURG, Jan. 24, 2020 /PRNewswire/ -- At Lake Charles, we
maintain our focus on safely improving productivity in the field
and bringing the plants into beneficial operation. The project
continued with its exceptional safety record with a recordable case
rate of 0,10.
At the end of December 2019,
engineering and procurement activities were substantially complete
and construction progress was at 98%. Overall project completion
was at 99% and capital expenditure amounted to US$12,5 billion.
An explosion and fire occurred at the Low-density Polyethylene
(LDPE) unit on 13 January, 2020. All
employees and contractors are safe and accounted for. In line with
standard safety protocols as well as the necessary regional
requirements, the unit had to be made safe before re-entry of
personnel into the affected area could be allowed. The area which
is the subject of the explosion, is a high pressure section of the
LDPE unit.
The investigation is underway to determine the cause, extent of
the damage, and the scope and timeline of repair. Initial findings
indicate the damage is limited to a small portion of the LDPE unit
and, importantly, major equipment such as the compressors were
unaffected. Parallel commissioning activities on the remainder of
the LDPE unit will continue. The technology providers, licensors
and other external experts are fully engaged and in addition, we
have mobilized and dispatched a team of Sasol technical and
operations experts to support the investigation team.
During the time of the delay in the LDPE unit start-up, the
ethylene produced by the cracker and destined for the unit will be
sold externally. The projected earnings for the LCCP complex in
this financial year will only be impacted by the loss in the margin
of ethylene to low-density polyethylene. In addition, the insurance
process has been initiated and cover includes construction and
commissioning activities. We expect to determine the repair scope
and outage duration by the second half of February.
All previously commissioned units were unaffected and are
operating to plan. The Ethoxylates, Ziegler and Guerbet plants are
also unaffected and remain within cost and schedule as per our
previous guidance.
Production and sales metrics for the financial half year
ended 31 December, 2019
Sasol has published its production and sales metrics for the
financial half year ended 31 December, 2019 on the
Company´s website at www.sasol.com, under the Investor Centre
section or via this
URL: http://www.sasol.com/investor-centre/financial-reporting/business-performance-metrics.
Sasol expects a largely strong operational performance for the
financial year ending 30 June, 2020
with:
- The Mining business updating their full year forecasted
productivity to 1 170 – 1 200 t/cm/s. This will however result in
further external coal purchases of approximately 1,3 – 1,6 million
tons during H2 FY20 to supplement the contracted Isibonelo volumes
and enable recovery to desired stockpile levels;
- Gas production volumes from the Petroleum Production Agreement
in Mozambique is expected to be
114 – 118 bscf, in line with previous market guidance;
- Secunda Synfuels Operations full year production is forecasted
to be approximately 7,7 – 7,8 million tons, in line with previous
market guidance;
- Natref is targeting production rates of above 600m³/h for the
remainder of the year;
- Energy's sales volumes are on track to achieve previous market
guidance of approximately 57 – 58 mm bbl for FY20;
- As previously communicated, ORYX GTL expects to achieve a
utilisation rate of 55% – 60% for FY20 due to an extended planned
shutdown during H2 FY20;
- In line with previous market guidance, Base Chemicals sales
volumes (excluding Polymers US products) are expected to be 1 – 2%
higher than the prior year, and the total sales volumes are
expected to be 15 – 20% higher than the prior year; and
- Given the continuing macroeconomic headwinds and the softer
outlook on global GDP growth in calendar year 2020, Performance
Chemicals expects sales volumes for the full financial year to
remain flat to slightly below the prior year's level (excluding
LCCP). Total sales volumes for the business are expected to be 7 -
9% higher than the prior year.
Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are
not historical facts and relate to analyses and other information
which are based on forecasts of future results and estimates of
amounts not yet determinable. These statements may also relate to
our future prospects, expectations, developments and business
strategies. Examples of such forward-looking statements include,
but are not limited to, statements regarding exchange rate
fluctuations, volume growth, increases in market share, total
shareholder return, executing our growth projects (including LCCP),
oil and gas reserves, cost reductions, our Continuous Improvement
(CI) initiative, our climate change strategy and business
performance outlook. Words such as "believe", "anticipate",
"expect", "intend", "seek", "will", "plan", "could", "may",
"endeavour", "target", "forecast" and "project" and similar
expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such
statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and there are risks that the predictions, forecasts,
projections and other forward-looking statements will not be
achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, our actual results may
differ materially from those anticipated. You should understand
that a number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in such forward-looking
statements. These factors and others are discussed more fully in
our most recent annual report on Form 20-F filed on 28 October 2019 and in other filings with the
United States Securities and Exchange Commission. The list of
factors discussed therein is not exhaustive; when relying on
forward-looking statements to make investment decisions, you should
carefully consider both these factors and other uncertainties and
events. Forward-looking statements apply only as of the date on
which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new
information, future events or otherwise.
For further information, please contact:
Sasol Investor Relations
Feroza Syed
Chief Investor Relations Officer
Direct telephone: +27-(0)-10-344-7778
investor.relations@sasol.com
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SOURCE Sasol Limited