Mining and infrastructure solutions developer Orica Limited has revealed robust financial results for the year ending 30 September 2023, showcasing a significant uplift in performance driven by effective strategy execution and commercial discipline.
The ASX-listed company said key achievements include a Statutory Net Profit After Tax (NPAT) of $295.7 million, compared to $60.1 million in FY2022, and Underlying EBIT from continuing operations of $698.1 million, marking a 24 per cent increase from the previous year.
Earnings increased across all segments, attributed to sustained commercial discipline, heightened customer demand, and increased earnings from advanced technology offerings.
Notably, the Digital Solutions segment reported a doubling of earnings compared to the prior year.
Furthermore, Orica emphasised its commitment to safety and sustainability. The company achieved a reduction in the Serious Injury Case Rate for the second consecutive year and reported no significant environmental incidents.
Orica also progressed towards climate targets, with a nine per cent decrease in net Scope 1 and 2 emissions from the previous year.
The Board declared an unfranked final ordinary dividend of 25.0 cents per share, representing a payout ratio of 55 per cent.
The full-year dividend amounted to 43.0 cents per share, with a payout ratio of 53 per cent. Return on net operating assets (RONA) increased from 11.4 per cent in FY2022 to 12.6 per cent in FY2023.
Orica expects FY2024 EBIT from continuing operations to increase compared to the prior year, driven by strong demand, increased adoption of blasting and digital technologies, and continued commercial discipline.
The outlook also includes challenges such as inflationary pressures, higher energy costs, and geopolitical risks.
Sanjeev Gandhi, managing director and CEO of Orica, expressed satisfaction with the strong performance, emphasising the team’s commitment to strategy execution and growth across all segments.
“We have delivered another strong performance for the full year with a 24 per cent growth in underlying earnings from continuing operations,” Gandhi said.
“Our team remains committed to executing our strategy and has delivered improved performance and growth across all segments this year with a continued focus on quality of earnings,” he added.
