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A petrol station is seen in Soweto.
South African petrochemical firm, Sasol, opened a new tab on Monday and skipped paying a dividend after reporting a 31% decline in half-year profit on a fall in oil prices and lower sales volumes.
Sasol’s headline earnings per share for the six months to December 2024 were R14.13, down from R20.37 during the same period a year earlier.
The company, which produces fuel and chemicals from coal and gas, said its revenue was 10% lower at R122.1 billion, mainly due to a 13% drop in the average rand price per barrel of Brent crude oil and a significant decline in refining margins.
Sasol also reported a 5% decrease in sales volumes as a result of lower production and lower market demand.
The company said it did not declare a dividend because it ended the period with a negative free cash flow of R1.1 billion, while its net debt of $4.3 billion exceeded levels set in its capital allocation policy.
