South African energy and chemicals giant Sasol has withheld its dividend despite a marked rise in annual profit.
Headline earnings per share increased 9% to 38.31 rand, while basic earnings per share surged 79% to 18.99 rand.
Yet net debt held stubbornly near $3.3 billion, still above the $3 billion ceiling set by its distribution policy.
Higher Brent crude prices and stronger fuel sales buoyed results, but rising working capital ate into available cash.
Sasol runs capital-intensive operations, including its Secunda synthetic-fuels complex, one of the world’s largest coal-to-liquids plants.
The company has spent years rebuilding its balance sheet after cost overruns at its Lake Charles project in the United States.
Falling below the $3 billion threshold would not automatically guarantee shareholders a return of dividends, Sasol cautioned.
For investors, the message was bittersweet: profits climbed, yet the cash taps remained firmly closed.