Orica delivers $1.06B underlying profit
By Jon CuthbertKey points
- Commercial explosives maker Orica lifted its full-year earnings before interest and tax to $1.06 billion.
- Shareholders will receive a final dividend of 35.5 cents, taking total payouts to 64 cents per share.
- High-margin speciality chemicals and digital solutions divisions expanded to generate nearly 23% of total group earnings.
Commercial explosives provider Orica (ASX:ORI) reported a 7% increase in full-year earnings before interest and tax to $1.06 billion, driven by mining demand.
Underlying net profit after tax rose 9% to $589.7 million, improving on the $541.1 million reported in the prior year.
"Continued demand for premium products and advanced technologies, together with an increasingly diversified earnings profile, supported growth across all regions and segments," said Orica Managing Director and CEO Sanjeev Gandhi.
Statutory net profit reached $264.2 million after factoring in $325.5 million in post-tax significant items and $344.2 million in related cash outflows.
Following the announcement, the Orica share price was unchanged at $22.80.
Capital management initiatives included completing a $500 million share buyback and keeping leverage at 1.46 times net debt to operating earnings.
The group expanded its global footprint by purchasing the Danafloat mining chemicals line and acquiring the Nelson Brothers explosives business in North America.
