Petrochemicals company Sasol reported a 66% fall in full-year profit on Tuesday, mainly due to weaker chemical prices, and skipped a final dividend.
Sasol posted 11.5 billion rand ($648.47 million) headline earnings in the year to June 30, compared with 33.8 billion rand during the same period last year.
It did not declare a final dividend, leaving the interim 2 rand per share declared at half-year as the full-year payout for the 2024 financial year.
Sasol said it changed its dividend policy, which was previously based on 2.5-2.8 times core headline earnings per share, to 30% of free cash flow generated, provided that net debt is below $4 billion on a sustained basis.
“The disconnect between headline earnings and cash flow generation, as well as elevated leverage levels, has necessitated a revision to the company's dividend policy,” Sasol said in a statement.
Its $4.1 billion net debt for 2024 exceeds the net debt trigger in the new dividend, resulting in no final dividend being declared at the year-end, the company added.
Reuters