Shares of Sasol (SSL) surged 6.20% in pre-market trading on Monday following the company's announcement of a return to profitability for fiscal 2025. The South African chemicals-and-energy group reported impressive financial results despite facing a challenging business environment.

Sasol's earnings per share for the year ended June 30 reached 10.60 South African rand (61 cents), marking a significant turnaround from the loss of 69.94 rand per share in the previous year. Headline earnings per share, a key profit measure in South Africa, also showed substantial improvement, rising to 35.13 rand from 18.19 rand. The company's performance was bolstered by a 75% improvement in free cash flow, driven by effective cost management and a favorable legal settlement.

Despite the positive bottom-line results, Sasol faced headwinds in its top-line performance. The company reported a 9% decrease in turnover to 249.10 billion South African rand, attributed to a 15% decline in oil prices in local currency terms, reduced refining margins, and lower sales volumes. However, the company managed to significantly reduce total impairments to 20.7 billion rand from 74.9 billion rand in the prior year, contributing to the profit turnaround. CEO Simon Baloyi acknowledged the complex and volatile global environment but emphasized the company's progress on strategic initiatives to restore value and drive growth. Notably, Sasol decided not to declare a final dividend for fiscal 2025, citing its debt level of $3.7 billion, which remains above the company's sustainability threshold.