Sasol Posts Profit for Fiscal 2025 Despite Lower Turnover and Debt Level

Sasol swung to earnings per share profit for fiscal 2025 despite lower turnover, with earnings per share at 10.60 South African rand compared to a loss of 69.94 rand in the prior year. Total impairments fell to 20.7 billion rand from 74.9 billion rand, and free cash flow improved by 75%. Turnover fell 9% to 249.10 billion South African rand, and adjusted earnings before interest, taxes, depreciation, and amortization declined 14% to 51.76 billion rand. The company didn't declare a final dividend due to its debt level of $3.7 billion.

South African chemicals-and-energy group Sasol reported earnings per share (EPS) profit for fiscal 2025, despite lower turnover, according to a statement released on Monday, August 25. The company's EPS for the year ended June 30 was 10.60 South African rand (61 cents) compared to a loss of 69.94 rand per share in the prior year [1][2].

Sasol's headline earnings per share rose to 35.13 rand from 18.19 rand, reflecting a challenging environment marked by a 15% decline in the local currency oil price, reductions in refining margins, and fuel-price differentials, along with a 3% drop in sales volumes. Total impairments fell to 20.7 billion rand from 74.9 billion rand in the prior year, while free cash flow improved by 75% due to cost management and a legal settlement [1][2].

The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 14% to 51.76 billion rand from 60.01 billion rand. Sasol's Chief Executive Officer, Simon Baloyi, stated, "We are advancing our strategic initiatives to restore the Southern Africa value chain, reset International Chemicals, and deliver our growth and transform ambitions. However, the global environment remains complex and volatile" [1][2].

Sasol did not declare a final dividend for fiscal 2025 due to its debt level at June 30, which stood at $3.7 billion, above its sustainability threshold [1][2].

References:
[1] https://finance.yahoo.com/news/sasol-swings-profit-despite-challenging-073100236.html
[2] https://www.morningstar.com/news/dow-jones/20250825755/sasol-swings-to-profit-despite-challenging-environment-update