Australian-listed explosives and fertiliser manufacturer Incitec Pivot has booked a FY24 net loss of A$310.9 million after its $791 million fertiliser business impairment.
The company reported group revenue down 11% year-on-year at $5365 million, with lower Asia Pacific and Americas explosives business sales weighing on the overall result along with Incitec Pivot’s exit from legacy assets.
Dyno Nobel Asia Pacific did produce higher yoy EBIT, though, with Incitec Pivot CEO Mauro Neves citing several factors.
“Dyno Nobel Asia Pacific delivered a record EBIT, with a 36% improvement year on year, as major resource sector customers like Peabody, Fortescue and BHP Mitsubishi Alliance, recommitted to contracts and use of our innovative technology to unlock value in their businesses.
“Dyno Nobel Americas underlying performance increased 15% on the back of improved pricing discipline and cost management initiatives.
“Despite a challenging first half, our efforts to enhance operational efficiency and reliability have delivered significant improvements at Phosphate Hill, with the site finishing the year strongly.
“Pleasingly, our Distribution business delivered its strongest result on record with an EBIT of $60 million, positioning this business well for the future alongside a strong agricultural industry.
“We remain committed to delivering the Fertilisers separation in the next six-to-12 months, with a potential divestment in parts to maximise value and increase execution certainty.”
“The business continued to see a steady uptake of its premium technology suite, particularly electronic detonators and Differential Energy emulsions, delivering improved earnings of $11 million in FY24.”
US investment bank Morgan Stanley described Incitec Pivot’s FY24 result as solid.
“Fertiliser separation is progressing but a final conclusion remains some way off,” it said.
“A sale process will commence for the distribution business early in CY25.
“While additional colour is a positive, a certain outcome remains elusive and we continue to see challenges with any potential Phosphate Hill sale.”
