JOHANNESBURG -South African petrochemicals group Sasol said on Monday its joint chief executives, Bongani Nqwababa and Stephen Cornell, will step down following a review of its Lake Charles Chemicals project (LCCP), which has been hit by delays and rising costs.
Sasol said both CEOs, who have not been found to have committed misconduct nor incompetence, would step down at the end of the month to restore trust in the company.
“It is a matter of profound regret for the Board that shortcomings in the execution of the LCCP have negatively impacted our overall reputation, led to a serious erosion of confidence in the leadership of the Company and weakened the Company financially,” Sasol said in a statement.
The executive vice president of its chemicals business, Fleetwood Grobler, will assume the role of president and CEO effective November.
Sasol on Monday also reported a 5% rise in annual profit and shelved its final dividend as the firm sought to strengthen its balance sheet in light of a challenging trading environment
Core headline earnings per share (HEPS), which strips out certain one-off items and is the primary profit gauge in South Africa, rose to 38.13 rand ($2.61) for the 12 months ended June. 30 from 36.38 rand, a year earlier.
Adjusted Earnings before interest, tax, depreciation and amortization (EBITDA)decreased 9% compared to the prior year due to lower chemical product prices and higher operating costs from its Lake Charles Chemicals Project.