[miningmx.com] – SOUTH African petrochemicals company, Sasol, said it would alter its dividend policy in order to manage its balance sheet amid a hefty decline in the oil price.
In an announcement to the Johannesburg Stock Exchange, the group said it would opt for a cover dividend policy which focuses more tightly on the ability of the organisation’s earnings to pay a suitable dividend.
This would replace the group’s progressive dividend policy where payouts to shareholders do not go backwards.
“In the context of a low oil price environment, the group’s earnings will be negatively impacted. The current macroeconomic conditions have therefore necessitated a reassessment of the Company’s progressive dividend policy,” the company said.
“At a special meeting of the Sasol Board, the directors approved a change in the company’s dividend policy,” it said.
“The revised policy is based on a dividend cover range, which will be similar to the dividend cover rates applied during the 2008 to 2014 financial years,” it said.
Earlier this year, Sasol said it would exceed a 2013 commitment to achieve R4bn in annual cost savings.
