South African petrochemical giant Sasol has reported a 31% drop in half-year profit, driven by falling oil prices and lower sales volumes. The company revealed a decline in headline earnings per share for the six months ending December 2024, down to R14.13 from R20.37 during the same period in 2023.
Sasol’s revenue also took a hit, dropping 10% to R122.1 billion. This was primarily due to a 13% decrease in the average rand price per barrel of Brent crude oil, as well as a sharp drop in refining margins. The company also saw a 5% decline in sales volumes, attributed to lower production and reduced market demand.
In light of the financial challenges, Sasol opted not to declare a dividend, citing a negative free cash flow of R1.1 billion for the period and net debt of $4.3 billion, which exceeds its capital allocation policy thresholds.