By Nina Kienle

Sasol outlined earnings guidance for fiscal 2028, which include improved adjusted earnings and reduced debt, despite continuing macroeconomic volatility.

The South African chemicals-and-energy group on Tuesday said it targets adjusted earnings before interest, taxes, depreciation and amortization of up to 71 billion South African rand ($3.92 billion) on nominal terms, with a net debt below $3 billion, it said.

Sasol posted adjusted Ebitda of 60.01 billion rand and a net debt of $4.1 billion for the fiscal year ended June 2024.

It separately said that it revised its dividend policy to better align with the prevailing volatility.

A dividend will be paid once net debt of below $3 billion excluding leases on a sustained basis is achieved, compared with a previous threshold of below $4 billion.

The group didn't pay dividend for fiscal 2024, citing its high level of leverage.

The group aims to maintain a working capital in a target range of 15.5% to 16.5%

It added that it expects to see improved Ebitda growth through targeted improvement across the portfolio, and a strengthened balance sheet.

In international chemicals, the company aims to explore options to unlock value, targeting an Ebitda range between $750 million to $850 million, it said.

In fiscal 2025 it aims for a positive cash flow before financing costs, it added.

In southern Africa it aims to remain fossil fuel-based, targeting an Ebitda of up to 55 billion rand, it said.

It aims for an improvement in coal quality, restoring gasification performance and optimizing the cost base, it added.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

May 20, 2025 05:36 ET (09:36 GMT)

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