Sasol shares plummet as interim dividend put on hold
JOHANNESBURG – Petrochemicals giant Sasol fell more than 7 percent on the JSE on Monday after putting the brakes on the interim dividend for the six months to December to protect its balance sheet as earnings plunged on the volatile macro-economic environment and low oil prices.
The Johannesburg-headquartered company told investors that it decided to hold back on the interim dividend to protect its investment grade.
Chief financial officer Paul Victor said the current position of the balance sheet necessitated that the board make the decision in the long-term interest of shareholders.
“Where we find ourselves in terms of our peak gearing, one of the key priorities for the company is to protect our investment grade,” Victor said. “Ultimately, in terms of our capital allocation framework, we protect the investment grade and then also allocate resources to sustain operations and the health of the operations.”
Sasol’s shares later clawed back their losses to close 3.31 percent lower at R207.
Source: iol.co.za
