Orica has reported robust financial results for the half-year period driven by a surge in earnings from its core blasting business and growth in technology and digital solutions.
During this period, Orica achieved a Statutory Net Profit After Tax (NPAT) of $337.5 million, a significant increase from $122.6 million in the previous year, including $158.4 million from significant items after tax.
The company’s Earnings Before Interest and Taxes (EBIT) rose by 10 per cent to reach $353.7 million, reflecting increased customer demand and enhanced performance across all segments.
Underlying earnings per share stood at 38.8 cents, up 2.8 cents from the previous corresponding period.
Orica declared an interim dividend of 19.0 cents per ordinary share, unfranked, representing a payout ratio of 52 per cent. The Return on Net Assets (RONA) improved to 13.0 per cent from 12.4 per cent in the first half of 2023.
Commenting on the results, Sanjeev Gandhi, Orica’s managing director and CEO, highlighted the company’s commitment to executing its strategy and achieving sustained growth.
“Our core blasting business continued to strengthen this half, supported by strong customer demand as well as increased earnings from high margin premium products and technology,” he stressed.
Gandhi also praised the solid growth of Orica’s Digital Solutions segment, which experienced strong demand across products and services.
He underscored the company’s focus on safety, sustainability, and operational excellence, citing the successful completion of the Kooragang Island ammonia plant turnaround.
Despite reporting an employee fatality resulting from a traffic accident in India, Gandhi reiterated Orica’s unwavering commitment to safety stating, “Safety and the prevention of harm is the number one priority at Orica.”
He highlighted the absence of significant environmental incidents across global operations and reaffirmed the company’s progress towards its climate targets, including the installation of tertiary abatement technology at the Yarwun plant.
Orica also provided updates on its recent strategic acquisitions, including Terra Insights and Cyanco. The integration of Terra Insights into Orica’s Digital Solutions segment is progressing well, with a focus on delivering cross-selling opportunities.
The acquisition of Cyanco positions Orica as the leading global sodium cyanide producer, providing access to the lucrative North American gold market.
Looking ahead, Orica said it anticipates higher EBIT for FY2024 compared to the previous year, driven by strong demand for products and services across mining and civil value chains.
