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Petrochemicals group Sasol has amended its “progressive” dividend policy, which sees dividends improved or maintained in line with the company’s earnings, in light of a low oil price environment and current macroeconomic conditions.
“The revised policy is based on a dividend cover range, which will be similar to the dividend cover rates applied from 2008 to 2014.
“The board considers that, in the current environment, this revised dividend policy, together with other [cash-conservation measures], will allow it to execute its growth programme while continuing to return value to shareholders through dividend payouts,” it said in a statement on Monday.
At close of trade on Wednesday, the group’s share price had dropped by 5.95% to R440.97 on the news.
This followed an announcement by the State-owned firm last month that it would implement a 30-month “response plan” to drive yearly savings of some R4-billion.
The plan would involve capital portfolio “phasing and reductions”, capital structuring, working capital improvements and margin enhancements, besides others.
Sasol added on Wednesday that it had made changes to its top management structures as part of an ongoing refinement of its operating model and to enable additional cost reductions.
The group had also decided to combine two of its reportable segments – Southern Africa Energy and International Energy, as well as their associated management structures – into one segment called Energy.
“Given this decision, Sasol’s segmental reporting will now consist of six reportable segments: Mining, Exploration and Production International, Energy, Base Chemicals, Performance Chemicals and Group Functional Support,” it outlined.
Sasol would announce its results for the first half of the 2015 financial year on March 9.