South Africa: Sasol targets more debt off-loading initiatives

By Xolisa Phillip, in Johannesburg
Posted on Wednesday, 14 September 2022 11:06

A truck is seen at South African petro-chemical company Sasol's synthetic fuel plant
South African petro-chemical company Sasol's synthetic fuel plant in Secunda, north of Johannesburg. REUTERS/Siphiwe Sibeko

Sasol will continue work to further reduce debt after slashing net debt to below $5bn and strengthening its balance sheet, triggering the restoration of its dividend after a two-year drought for shareholders.

On 23 August 2022, the global chemicals and energy company headquartered in Sandton, South Africa, published its annual results for the year ended 30 June 2022, reporting net debt of $3.8bn for the period.

At its Capital Markets Day (CMD) held in September 2021, Sasol said key triggers for the reinstatement of the dividend included a net debt-to-EBITDA – earnings before interest, tax, depreciation, and amortisation – ratio of less than 1.5 times and net debt below $5bn. “As at 30 June 2022, the dividend triggers outlined at CMD were achieved.”