Orica shares lower after mixed full-year result
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More news: Orica shares dipped on the ASX after the chemicals and explosives manufacturer's full-year report largely met market forecasts.
Orica shares fell 3.5% to $16.95 by 11:15am AEDT.
Citi analysts said that Orica's full-year EBIT of $805.6 million was in line with consensus estimates. However, Orica's full-year revenue fell 7% short of Citi's forecasts, while its EBITDA margin and final dividend both came 1% ahead of its expectations.
Orica NPAT jumps in FY24
The news: Chemicals and explosives maker Orica reported a rise in profit for the full year to 30 September, boosted by increased uptake of its premium products, blasting technology and digital solutions.
The numbers: Statutory net profit after tax rose from $296 million to $525 million year on year, including $115 million of profit from significant items.
The company said its EBIT grew 15% to $806 million.
Orica expects EBIT to increase across each of its businesses in the upcoming financial year, with capital expenditure expected to be "broadly in line" with FY24.
Orica declared a final dividend of 28 cents per share, bringing the full year dividend to 47 cents.
The context: Orica highlighted successful turnarounds at its manufacturing plants at Kooragang Island and Yarwun in Australia, and Carseland in Canada, during the year.
The company also completed the first phase of its decarbonisation strategy, with the installation of two emissions abatement reactors at its Yarwun site.
Elsewhere, Orica completed acquisitions of US chemical producer Cyanco and Canadian geotechnical software vendor Terra Insights.
What they said: "We expect the demand for our blasting solutions, specialty mining chemicals and digital solutions to continue to grow as we partner with our customers to satisfy their strong appetite for new technology and digital solutions," said Orica's managing director and CEO Sanjeev Gandhi.
"While inflationary pressures, higher energy costs and increasing geopolitical risks remain an ongoing challenge, our performance this year demonstrates our resilience and ability to adapt and mitigate ongoing macro-economic and geopolitical challenges," he said.
The sources: ASX announcement, Citi research
