Sasol Faces First Loss Since 2020 with R44 Billion Hit

Sasol Ltd. has reported a significant financial downturn for the year ended June 30, 2024, marking its first loss since 2020. The company posted a loss of R44.3 billion, a stark contrast to the R8.8 billion profit recorded the previous year. This downturn is largely attributed to substantial impairments totaling R75 billion on its US and South African businesses, along with challenging market conditions that included constrained margins and depressed chemicals prices.

Turnover for the year dropped by 5% to R275.1 billion, despite being partially offset by a stronger rand oil price, improved refining margins, reduced total costs, and increased sales volumes. Sasol's loss before interest and tax (LBIT) was R27.3 billion, compared to a profit of R21.5 billion in the previous fiscal year. Headline earnings fell by 66% to R11.5 billion from R33.8 billion the prior year. As a result, Sasol revised its dividend policy to 30% of free cash flow generated, provided net debt remains below $4 billion, and did not declare a final dividend for the year.