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Rand strength concerns Sasol

Jan 27 2011 10:28 Reuters

Company Data

Sasol Ltd [JSE : SOL]

Last traded R353.58
Change R-2.42
% Change -0.68%
Cumulative volume 999,481
Market cap R227.90bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Davos - Petrochemicals giant Sasol [JSE:SOL] said it was speeding up its move into gas, and that rand strength was having a big impact on its business.

CEO Patrick Davies told Reuters Insider in an interview at the annual meeting of the World Economic Forum that rand strength had made the company sharper and forced it to cut costs.

Sasol was formed 60 years ago to turn South Africa's coal reserves into liquid fuels.

Davies said it was now "putting the foot on the accelerator" on its move into gas.

It agreed last month to pay $1.03bn for a half share of a Talisman Energy shale gas property.

The deal is Sasol's first push into shale gas plays, whose abundance has transformed North America's natural gas business by driving down prices. It could lead to the introduction of the South African company's gas-to-liquids technology.

 
 
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