Sasol (SSL), the South African chemicals-and-energy group, saw its stock soar 6.20% in pre-market trading on Monday following the announcement of a return to profitability for fiscal 2025. Despite facing a challenging environment, the company managed to swing from a loss to a profit, demonstrating resilience in its operations.

According to the company's latest financial report, Sasol posted earnings per share of 10.60 South African rand (61 cents) for the year ended June 30, compared to a loss of 69.94 rand per share in the previous year. Headline earnings per share, a key profit measure in South Africa, rose significantly to 35.13 rand from 18.19 rand. This turnaround in profitability appears to be the primary driver behind the stock's pre-market surge.

While Sasol's turnover decreased by 9% to 249.10 billion rand, reflecting lower oil prices and reduced sales volumes, the company made substantial improvements in other areas. Total impairments fell dramatically to 20.7 billion rand from 74.9 billion rand in the prior year, and free cash flow improved by 75%, aided by cost-management initiatives and a legal settlement. However, investors should note that Sasol will not pay a final dividend for fiscal 2025 due to its debt level of $3.7 billion, which remains above the company's sustainability threshold.