Sydney-based explosives manufacturer Orica has reported a significant increase in annual profit and anticipates further earnings growth in the coming fiscal year, driven by robust demand from the mining sector.
Profit Surge and Dividend Increase
Orica recorded a net profit of AUD 295.7 million ($190.3 million) for the 12-month period ending in September, a nearly fivefold increase from AUD 60.1 million the previous year. This impressive growth can be attributed to improved operational performance, notwithstanding charges associated with the divestment of its Turkey and Venezuela operations.
Earnings before interest and taxes from ongoing operations rose by 24% to AUD 698.1 million. As a reflection of their positive financial performance, Orica’s directors have declared a final dividend of 25 Australian cents per share, up from 22 cents in the previous fiscal year.
Future Outlook and Expansion Prospects
Orica is optimistic about the prospects of its ongoing operations for fiscal 2024. The company foresees a surge in demand for their products and services due to expected growth in global commodities markets. This is further supported by an expected increase in the adoption of their blasting and digital technology offerings. However, Orica also acknowledges potential challenges stemming from inflationary pressures, high energy costs, and heightened geopolitical risks.
Notably, Orica forecasts that earnings in fiscal 2024 will be weighted more towards the second half of the year due to scheduled maintenance activities planned for the coming months.
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