Orica continues strong performance in 1H FY 2023

Image credit: orica.com

Orica has reported $323 million in underlying earnings for the half-year that ended on 31 March, reflecting a 32 per cent increase on the prior corresponding period. 

In a media release, the company said it continued to see a strong earnings performance in the first half of fiscal year 2023— a continued positive result driven by embedded commercial discipline, strong customer demand, manufacturing utilisation, and increased profit from advanced technology offerings. 

“Sustained high commodity prices have fuelled demand for our products and services, and driven customers to Orica’s specialised products and technology offerings to deliver further productivity gains and support their sustainability goals,” said Sanjeev Gandhi, managing director and CEO at Orica. 

The company’s statutory net profit after tax stood at $122.6 million, which includes $40.9 million in significant items expenses after tax. 

Orica’s Board has declared an interim ordinary dividend of 18.0 cents per share, unfranked, representing a payout ratio of 50 per cent. 

The dividend is payable to shareholders on 3 July 2023 and shareholders registered as at the close of business on 26 May 2023 will be eligible for the interim dividend.

Orica CEO Gandhi said the company has achieved its safety and environmental targets for the current half of the fiscal year, including the Serious Injury Case Rate, loss of containment and potable water intensity. 

“During the half, maintenance turnarounds were completed safely at our Kooragang Island, Yarwun and Bontang manufacturing facilities in Australia and Indonesia,” Gandhi said. 

The company CEO also highlighted the confidence and investment certainty in Orica’s decarbonisation plans brought by the Safeguard reforms ratified in the Australian Parliament in March. 

“We share the Government’s goal of reducing industrial emissions as soon as possible. Orica’s voluntary corporate emissions reduction goals include plans that represent real abatement and real decarbonisation on site, having already delivered a net 14% reduction in our overall emissions since 2019,” Gandhi said. 

Orica looks forward to continuing its strong performance in the second half of FY 2023 and the seasonality of earnings being less skewed to the second half compared with FY 2022. 

“Demand for critical minerals remains strong driven by the global energy transition. We expect increased customer activity to continue, as well as increased demand for our products and services and breakthrough technology solutions,” Gandhi said.