Orica shares rise on profit jump, lift in outlook
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More news: Shares in Orica rose 2.2% to $15.43 on Thursday morning after the chemicals and explosives maker reported a nearly five-fold jump in full-year net profit to $295.7 million and lifted its targeted average return on net assets over the next three years.
Orica lifts dividend after full-year profit jump
The news: Chemicals and explosives maker Orica has lifted its dividend and outlook after strong commodities demand helped deliver a jump in full-year profits.
The numbers: Orica reported net profit of $295.7 million for the year to 30 September, up nearly five-fold from a year ago, while revenue rose 12% to $7.95 billion. The company will pay a final dividend of 25 cents a share, up from 22 cents a year ago.
The context: Orica attributed the sharp lift in earnings across its divisions to continued commercial discipline, strong customer demand, and increased earnings from advanced technology offerings. "We have worked hard in the second half to deliver improvements in trade working capital and improved operating cash flow in line with stronger earnings," chief executive Sanjeev Gandhi said.
The company is now targeting an average return on net assets in the range of 12% to 14% over the next three years, up from its previous guidance of 10.5% to 13%. However, it warned that inflationary pressures, higher energy costs and geopolitical risks remain challenging in FY24, with earnings to be skewed to the second half compared with 2023.
The source: ASX announcement
