South Africa's Sasol profit plunges 66% on weak chemical prices

AFRICAN STOCKS AND FINANCEAugust 20, 2024 at 4:50 PM UTC

TLDR

Sasol, South African petrochemicals giant, reports 66% profit decline due to weaker chemical prices.
Headline earnings dropped to 11.5 billion rand from 33.8 billion rand in previous year.
Turnover decreased by 5% to 275.1 billion rand; Sasol decides not to declare a final dividend.

South African petrochemicals giant Sasol reported a significant 66% decline in its full-year profit, citing weaker chemical prices as the main factor behind the drop.

The company's headline earnings for the year ending June 30 fell to 11.5 billion rand ($648.47 million), down from 33.8 billion rand in the previous year. Sasol also decided not to declare a final dividend.

The company, which is known for producing liquid fuels and chemicals from coal, saw a 5% decrease in turnover, bringing it to 275.1 billion rand, as depressed chemical prices put pressure on its profit margins.

Key Takeaways

Sasol reported a basic loss per share of 69.94 rand for the financial year, a stark contrast to the 14 rand earnings per share recorded the previous year. This loss was largely driven by a $3 billion write-down in the carrying value of its chemicals and fuel assets, reflecting the impact of softer market pricing and a subdued outlook. The company's American chemicals unit bore the brunt of these impairments, with nearly $2.6 billion in losses. Consequently, Sasol did not declare a final dividend, leaving the interim 2 rand per share payout from the half-year results as the full-year dividend for 2024.

Finance

Sasol

South Africa

Petrochemicals

Oil & Gas

Dividends