Sasol reports higher earnings but withholds dividend due to debt

Sasol reported improved financial and operating performance for fiscal 2026, with adjusted EBITDA increasing 17% to ZAR 61 billion and gross margins rising 13%. The company attributed these results to improved operational reliability across its Southern African value chain, strict cost management, and stronger refining margins.

Despite the rise in headline earnings per share to R38.31, Sasol has withheld its dividend. This decision is due to the company's net debt remaining at approximately $3.3 billion, which sits above the $3 billion threshold established in its shareholder-distribution policy for resuming dividends.

Sasol's net debt has declined 11% over the past year, reaching its lowest level in a decade. The company aims to reduce net debt below the $3 billion mark between fiscal 2027 and fiscal 2028. Available liquidity increased by 21% to approximately $5 billion, while capital expenditure fell 18% to ZAR 21 billion following the completion of projects in Mozambique and South Africa.