Incitec Pivot swings to full-year loss

The news: Fertilisers and explosives giant Incitec Pivot has swung to a full-year loss after heavy writedowns in its US and Australian fertiliser businesses and lower earnings following the sale of its US ammonia facility.

The numbers: It reported net loss of $310.9 million for the year to 30 September, down from a net profit of $560 million a year ago. Revenue was down 10.7% to $5.36 billion, and the company will pay a final dividend of 6.3 cents a share compared to 5 cents a share a year ago.

The context: Incitec said the result included impairments worth $712 million related to the Australian fertiliser business, the US fertiliser business and closure costs for the Dyno Nobel Asia Pacific site, while earnings were lower following the sale of the Waggaman ammonia facility in the US and closure of fertiliser manufacturing at Gibson Island in Queensland.

CEO Mauro Neves reiterated the company’s plans to separate and divest its fertiliser business. The company said the outlook is positive for FY25 as it focuses on cost management and aims to increase margins. It flagged an earnings impact of $45 million to $55 million for FY25 due to turnarounds.