Orica secures North American supply for FY27
- Orica has secured an ammonium nitrate supply for its contracted North American customers for FY27.
- The company expects higher sourcing costs to be offset without a material impact on FY27 margins.
- Orica attributes its operational resilience to network optimisation, cost reduction initiatives, and asset acquisitions.
Commercial explosives producer Orica (ASX:ORI) has secured ammonium nitrate supply for its North American contracted customers for FY27 despite higher sourcing costs.
The company had previously indicated that negotiations for the sale of its surplus Deer Park land in Victoria would exchange in FY26, but market conditions have pushed that timeframe out further.
"We completed the integration of Danafloat and the Nelson Brothers explosives business and continue to make strong progress in our organisation-wide cost reduction programme," said Orica Managing Director and CEO Sanjeev Gandhi.
Orica added that higher sourcing costs will be offset through logistics optimisation, cost-out initiatives, and customer arrangements to protect profit margins.
The broader business continues to perform in line with company expectations, while further outlook details will be provided at Orica's full-year results in November.
Following the announcement, the Orica share price was unchanged at $23.28.
The Melbourne-based company operates a global supply network providing blasting systems and mining chemicals to commercial operations across multiple continents.
