*

Units could be sold or closed

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Chemicals business hit by depressed prices

(Recasts with Sasol's plans to review its chemical business,

adds shares in paragraph 2)

By Nelson Banya

Aug 20 (Reuters) - Sasol will take "decisive

action" following a review of its underperforming chemicals

units, CEO Simon Baloyi said on Tuesday after the South African

petrochemicals company announced a $3 billion asset writedown

due to depressed prices.

Sasol's shares were down 6.3% at 1120 GMT after it posted a

27.3 billion rand ($1.54 billion) loss before interest and tax

in the year to June 30, from profit of 21.5 billion rand the

previous year.

"We're going to look at our global international chemicals

portfolio," Baloyi told analysts. "We're going to go through

asset by asset and we're going to take decisive actions on

underperforming assets."

Sasol CFO Hanre Rossouw said the ongoing asset review was

"not a disposal programme as we previously had when we were in

financial distress".

While some assets could be sold, others could be "repaired,

optimised or closed", Rossouw told Reuters.

Sasol could also consider selling its 50% stake in the Lake

Charles chemicals complex in Louisiana, U.S "but at the right

time", Baloyi said.

Sasol, which produces chemicals and liquid fuels from coal

and gas, jointly owns the business with LyondellBasell.

"If you look at where we are right now in the cycle it won't

be attractive. We don't think it will help us generate any value

for shareholders," Baloyi said.

The chemicals segment contributed 35% to Sasol's adjusted

earnings before interest, taxes, depreciation, and amortisation

(EBITDA) in the financial year, down from 37% previously.

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 has 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 = 17.7820 rand)