Orica announces 2022 half year results

57
Image Credit: Orica 2022 Half Year Results Announcement

Mining and infrastructure solutions giant Orica’s 2022 half year results show percentage gains across the board.

Orica has today announced a strong financial performance for the first half of 2022, including a Statutory Net Loss After Tax (NLAT) attributable to the shareholders of Orica for the half year ended 31 March 2022 of $85 million and underlying Earnings Before Interest and Taxes (EBIT) of $245 million – up 58 per cent on the prior corresponding period.

Other key financials announced today included ammonium nitrate volumes of 2.0 million tonnes – up 5 per cent, underlying earnings per share of 36.1 cents, up 94 per cent, net debt of $1.6 billion and gearing at 38.3 per cent, which is within target range, and an unfranked interim dividend of 13.0 cents per ordinary share, representing a payout ratio of 41 per cent.

The Australasian company is one of the world’s leading mining and infrastructure solutions providers. From the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring to its cutting-edge digital solutions and comprehensive range of services, it claims to sustainably mobilise the earth’s resources.

Managing Director and CEO Sanjeev Gandhi puts the ASX-listed company’s strengthened performance down to better market conditions and a refreshed strategy.

“Our first half result reflects the relentless efforts of our team in improving performance, in line with our refreshed strategy that we outlined in November 2021. Focusing on three value drivers that aligns with Orica’s strengths, the refreshed strategy aims to deliver solutions and technology that drive productivity and innovation for customers and provide enduring value to shareholders and other stakeholders,” said Gandhi.

“The strength of our global manufacturing and supply network has enabled us to meet our customers’ needs, as we continue to navigate through difficult operating conditions.”

Subject to market conditions, the strengthened performance is expected to continue into the second half of the 2022 financial year. It expects steady commodity growth, particularly in gold, copper and quarry and construction to continue to drive demand for its products and services.

It also anticipates momentum in earnings from its underlying businesses to continue, despite its planned exit from its operations in Russia, the supply chain challenges associated with Russia-Ukraine, and the divestment of Minova.