Sasol sharpens its strategy

Article Excerpt

SASOL LTD. (ADR) $31.65 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883- 9697;; ADRs o/s: 653.0 million; Market cap: $21.7 billion; Dividend yield: 3.8%) has now completed a strategic review of its operations based on today’s energy prices. As a result, it will no longer invest in startup gas-to-liquids (GTL) projects. This decision means Sasol will cancel plans for its largescale GTL plant in Louisiana. It will, however, continue to build its massive new chemicals plant in Lake Charles, Louisiana. The facility will cost $11 billion. Production is scheduled to start in 2018. The company also plans to sell its Canadian shale gas properties. Its partner in the area is Progress Energy, a wholly owned business of Petroliam Nasional Berhad (Petronas). It’s a Malaysian national oil and gas company. Sasol ADRs are a buy. buy…

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