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