MARKET FACTORS IMPACT RESULTS, FUNDAMENTALS REMAIN SOUND
Melbourne: Orica (ASX: ORI) today announced Statutory Net Profit After Tax (NPAT) attributable
to the shareholders of Orica for the six months ended 31 March 2021 of $77 million, down 54 per
cent on the prior corresponding period (pcp); and underlying EBIT of $152 million, down 51 per
cent on the pcp. The Board has declared an unfranked interim dividend of 7.5 cents per ordinary
share, payable on 9 July 2021, representing a 42% payout ratio.
Orica Managing Director and CEO Sanjeev Gandhi said: “Our first half financial results are in line
with our February market update and reflect the impact of various market factors. As we detailed in
the update, ongoing COVID-19 disruptions, geopolitical issues and unfavourable foreign exchange
movements impacted us in the half.
“As we address these challenges, we have maintained our disciplined approach to our balance
sheet and capital management, while delivering a step up in cash generation and controlling our
levels of debt and gearing.
“Operationally, we continued to focus on what we can control, making good progress on many core
strategic fronts, including growing uptake of our high margin digital solutions, the successful
integration of Exsa, Burrup operating in line with our plans and further stabilisation of our SAP
“At the same time, we are advancing our strategy to become an even safer, more responsible and
more sustainable organisation. Our major decarbonisation projects are progressing to plan and we
are on track to meet our industry-leading emissions targets. Most importantly, it was a half with no
fatalities and no significant environmental incidents.”
Orica also announced today that it intends to run a sale process for the Minova business, which
provides ground control solutions for the mining, civil / tunnelling, geotechnical and construction
Mr Gandhi said: “While Minova has delivered a substantially improved performance in recent
times, it has been identified as non-core. Therefore, we will consider selling at an appropriate
Commenting on the full year outlook, Mr Gandhi said: “While the factors that impacted us in the
first half are expected to largely reverse over time, and the fundamentals of our business remain
sound, we remain cautious about the short-term outlook.
“It has been encouraging to see volumes start to increase at the end of the half. While we expect a
better second half than the first, given uncertainties remain around market factors, we expect the
second half EBIT to be lower than the pcp.
ORICA HALF YEAR FINANCIAL RESULTS 2021
“We will continue to focus on what we can control and remain on track to achieve a number of
strategic targets including contributions from new technology and realising the financial and
synergistic benefits from our Exsa acquisition.
“At the same time, we are reducing overhead and manufacturing costs, accelerating speed to
market of our world-leading technology, and continuing to optimise our operating model, our SAP
platform and our global initiating systems manufacturing network.
“We have a refreshed management team in place who are energised and focused, and we move
forward with a clear set of strategic priorities, well-positioned for recovery as external conditions
courtesy of Bell Direct
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