Sasol Returns to Profit as Higher Chemical Prices Offset Writedowns

Sasol Ltd. swung to an annual profit for the year ended 30 June, helped by higher chemical prices, tighter cost controls and sharply lower asset writedowns. The South African petrochemicals group reported basic earnings per share of 10.60 rand, reversing a loss of 69.94 rand a year earlier. A 4.3 billion-rand payout from state-owned rail operator Transnet, following a dispute over oil-transport charges, also bolstered the bottom line. Turnover slipped 9% on weaker sales volumes and lower rand-denominated oil prices, yet capital expenditure was cut 16% to 25.4 billion rand and asset impairments fell to 20.7 billion rand from 74.9 billion rand. Net debt remains about US$3.7 billion, exceeding the company’s 3 billion-dollar threshold for dividend payments; Sasol therefore kept its dividend suspended. Even as it returned to profit, Sasol said it is buying more carbon credits to offset emissions as it plans to raise coal-based production—a strategy that underscores the tension between its growth ambitions and decarbonisation commitments.