Orica posts record returns and strategic US acquisitions

Orica (ASX:ORI) has delivered a sound half-year performance, underpinned by strong demand for premium products and a positive outlook for gold and copper markets.

The company reported a net profit after tax (pre-significant items) of $283.1 million, marking an 8% increase over the previous corresponding period.

The result was supported by an EBIT of $512 million, up 5%, and a significant improvement in return on net assets to 14.7%—the highest level recorded in thirteen years.

Despite a statutory net loss of $0.6 million due to $283.7 million in one-off items, the underlying fundamentals remain exceptionally strong, with earnings per share rising 12% to 60.7 cents.

The company recently reached an agreement to acquire Nelson Brothers’ explosives business in North America, a move designed to deepen its footprint in the US quarrying and construction sectors.

Additionally, the acquisition of the Danafloat product range expands its specialty mining chemicals portfolio into the high-growth copper processing market.

Shareholder returns have been prioritised through a 14% increase in the interim dividend to 28.5 cents per share and the completion of a $500 million on-market share buy-back.