Aug 20 (Reuters) – South African petrochemicals company Sasol reported a 66% fall in full-year profit on Tuesday, mainly due to weaker chemical prices, and skipped a final dividend.

Headline earnings, which strip out one-off items and are the main profit measure used by South African companies, were 11.5 billion rand ($648.47 million) in the year to June 30, compared with 33.8 billion rand a year earlier.

Sasol, which produces liquid fuels and chemicals from coal, said its income was hit as depressed chemicals prices exerted pressure on margins. Turnover fell 5% to 275.1 billion rand.

The company wrote down $3 billion in the carrying value of its chemicals and fuel assets mainly due the softer market pricing and outlook, resulting in a basic loss per share of 69.94 rand, compared to 14 rand basic earnings per share the previous year.

The biggest impairments, totalling nearly $2.6 billion, were recorded at its American chemicals unit.

Sasol did not declare a final dividend, leaving the interim 2 rand per share declared at half-year as the full-year payout for the 2024 financial year.

The company said it had changed its dividend policy, which was previously based on 2.5-2.8 times core headline earnings per share, to 30% of free cash flow generated, provided that net debt is below $4 billion on a sustained basis.

“The disconnect between headline earnings and cashflow generation, as well as elevated leverage levels, has necessitated a revision to the company’s dividend policy,” Sasol said in a statement.

Net debt for 2024 stood at $4.1 billion, just above the dividend trigger level.

($1 = 17.7341 rand)

(Reporting by Nelson Banya; Editing by Eileen Soreng, Kirsten Donovan)