Sasol cuts dividend as earnings plummet

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The synthetic fuel and chemicals company reported a 65% fall in earnings for the year ended in June.

News24 Business front pageSasol has cut its final dividend for the year ended in June to R10 per share, down 32% from the R14.70 per share declared last year, as earnings plummeted.

The synthetic fuels and chemicals giant on Tuesday reported its annual earnings before interest and tax declined 65% from R61.4 billion in 2022, to R21.5 billion for the 12 months to end June 2023. Basic earnings per share fell 78% from R62.34 to R14. This, Sasol said, was mainly due to the impairment of assets – including a R35 billion write-down of its Secunda facility – the inflationary impact on costs, the softening of the Brent crude oil price and refining margins in the latter part of the year. Chemicals basket prices were on a declining trend during 2023.

Operating profit of R55.4 billion before remeasurement items increased 8% from the prior year, benefitting from gains on the translation of monetary assets and liabilities and valuation of financial instruments and derivative contracts of R6 billion, compared to R17.6 billion in losses in 2022.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.

 

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