South African energy and chemicals company Sasol has withheld its dividend despite reporting improved annual earnings because its debt remained above the limit set by its shareholder-distribution policy.
Headline earnings per share increased by 9% to R38.31, from R35.13 in the previous financial year.
Basic earnings include recognised gains, impairments and other accounting items, while headline earnings exclude several once-off capital gains and losses to give investors a clearer view of recurring performance.
Despite the improvement, Sasol did not declare a dividend.
Its net debt remained at approximately $3.3 billion, above the $3 billion ceiling contained in the company’s distribution policy.
